Category — Market Entry
Capri-Sun has entered the India market in partnership with Hyderabad-based company SDU Beverages.
“With the second largest population in the world, India’s beverage market opens up great potential for us. To establish Capri-Sun in India is a big challenge we know that …but we also are sure it offers unlimited potential,” Capri-Sun CEO Carsten Kaisig according to Business Line
“We have total annual retail sales volume $2 billion. The all-natural fruit drink for kids in available in four flavors, and in the first phase it will be available in top nine cities across the country. SDU Beverages MD Kishore Agarwal said: “We will be able to produce 2 million cases in our plant in Hyderabad which is expandable to 6 million.” We have made an investment $10 million in the first phase in this facility and are looking $20 to $40 million in annual sales in the coming years.”
March 31, 2014 No Comments
The U.S. Senate has confirmed yet another Indian American nominee of President Barack Obama to lead the trade promotion arm of the U.S. Commerce Department charged with helping U.S. companies succeed in markets around the world.
Kerala University physics graduate Arun M. Kumarwas confirmed to be assistant secretary of commerce and director general of the U.S. and Foreign Commercial Service by a voice vote March 12. A resident of Los Altos, California, Kumar holds an MBA from MIT’s Sloan School of Management and led KPMG/s India practice from his Silicon Valley base until his retirement last year. In this new role, Kumar is responsible for promoting American exports all over the world and manages a staff of Commercial Officers spread across America and the globe.
March 31, 2014 No Comments
Canadian luxury mobile handset maker Mobiado has allied with premium multi-brand electronic retailer Mihaus to enter the Indian market. Mobiado handsets are priced anywhere between $500 and $20,000.
Mobiado was founded in 2004 in Vancouver by Peter Bonac. It has a full keyboard, encrusted with sapphire crystal buttons and sells under 100,000 units annually. Mihaus, founded by Naveen Rao, Managing Director of Navshiv Retail, will retail and service the brand in India. Charu Makin, National Head, Sales & Marketing, Mihaus, said Mobiado has entered into a 10-year exclusive partnership with the company. “One of the biggest glitches with high-end brands was that there were no adequate post-sale services. We will address the service aspect also besides the distribution”.
“The new generation is willing to spend money on high-end devices that are not just aesthetically good but also don’t compromise on the functionality,” she said, adding the target market for the brand is in the 21-45 year age bracket. Mobiado will compete with brands such as Nokia’s Vertu, Tag Heuer Meridiist, Lamborghini, Armani and Dior handsets.
March 29, 2014 No Comments
Cisco, the Silicon Valley based networking giant get 2 per cent of its global revenues of over $48 billion from India, expected the number to grow to 5 per cent over the next five years on the back of growing demand for cloud and networking services. “Right now, India’s contribution is small, about 2 per cent. We are committed to the Indian market. It should be 5-10 per cent of our revenues,” Mr. John Chambers, CEO said at a Las Vegas event
Asked about the timeline, Cisco Senior Vice President (Worldwide Field Operations) Chuck Robbins said it should be 5 per cent in the next five years. “We should grow over 20 per cent every year over the next five years,” he added.
Cisco has over 10,000 people in India across Bangalore, Delhi-NCR, Mumbai, Chennai, Kolkata, Pune and Hyderabad. Of these, 8,000 people are part of the R&D set up.
March 29, 2014 No Comments
Gillette, a unit of Procter & Gamble, sells an India-specific razor, the Guard for 15 rupees, or 34 cents, and each razor blade is just12 cents. Guard has grown share faster than any other P&G brand in India. And Gillette’s market share for razors and blades in India has grown to 49.1 percent, according to Euromonitor.
The Daily Mail reports that Gillette has sold razors in India for over a decade. Offering its high-end Mach3 razor, which costs about $2.75, and a stripped down Vector two-bladed razor on the lower end, which goes for about 72 cents.
Gillette failed with its early version of the Vector in 2002. The version of that razor had a plastic push bar that slid down to unclog the razor. The bar was added because Indian men have thicker hair and a higher hair density than their American counterparts. But this was not enough.
Gillette, which is based in Boston, wanted to test the product among Indian consumers before launching it, and took the short cut of using Indian students in the local area as testers. But when Gillette launched the razor in India, the reaction was different. Executives were baffled about why the razor flopped until they traveled to India and observed men using a cup of water to shave. All the Boston area students had running water. Without that, the razor stayed clogged.
‘That’s another ‘a-ha’ moment,’ Carvalho said. ‘That taught us the importance that you really need to go where your consumers are, not just to talk to them, but observe and spend time with them to gather the key insight.’
Carvalho decided to bring 20 people, ranging from engineers to developers, from Gillette’s U.S. headquarters to India for three weeks.
The resulting Guard razor has one blade, to put the emphasis on safety rather than closeness, compared with two to five blades found on U.S. razors. One insight from filming shavers was that Indians grip the razors in many different ways, so the handle is textured to allow for easy gripping. There’s also a hole at the handle’s base, to make it easier to hang up, and a small comb by the blade since Indians hair growth tends to be thicker. Next, the company had to figure out how to produce the razor at the right price. ‘We had to say ‘How do we do this at ruthless cost?’‘ Carvalho said. P&G scrutinized the smallest details. It cut the number of components in the razor down to 4 compared with 25 needed for Mach3, Gillette’s three-blade razor. They even made the razor’s handle hollow so it would be lighter and cheaper to make.
‘I can remember talking about changes to this product that were worth a thousandth, or two thousandths of a cent,’ said Jim Keighley, the company’s associate director for product engineering.
How this matters
It is easy to jump to the wrong conclusion when addressing the India market. Gillette designed the Vector for Indian skin and hair type but neglected to consider the environment in which Indian men would use the product in market. American companies stumble like this often.
January 7, 2014 No Comments