A burgeoning middle class with an eager desire to experience a better lifestyle, coupled with an open market, has lead to a growth in the number of international consumer product companies operating in India. Doing business in India has never been more exciting and is witnessed by a significant allocation of global resources to Asia, particularly India. India has also become a sourcing base for companies operating in the region.
The 300 million and growing strong base of Indian consumers is exposed to many more products and services, but remains keenly aware of value. This in turn leads companies to be responsive to consumer preference and invest in brand building. The India proposition needs companies to understand the Indian consumer and his needs, and to respond to these with not always merely replicating the West.
With India, the size and scale of operations can be impacted by niche regional players, who hold an edge in terms of production and delivery costs. The packaged foods segment is a case in point; regional players have carved a share of the pie from national and international players in this segment.
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