Reflection on Adaptation to Foreign Markets


A growing and changing market:

India is undergoing major changes, especially in urban areas, where the middle class is becoming richer and more urban, requiring new services at the same time. “The purchasing power of this new middle class is still relatively small,” says Serge Granger. Nevertheless, his lifestyle changes. Women are entering the labor market more and more, and incomes are increasing, but the time to do the chores is diminishing and people do not necessarily return to eat at lunchtime. The organization of the house changes. We understand that fast food brands  have a potentially remarkable market opening with urban sprawl, at its current speed. “According to Serge Granger, the process of urbanization, already fast, could soon surpass that of China.

An increasingly popular offer:

Demographically, the model also tends to change: “A young population that is urbanizing: this is a typical example of a promising market. They have more pocket money than before and fewer children, “comments Serge Granger. Not to mention the appeal of the Western model: clean premises, bright colors, western look. These offer, in the words of Serge Granger, “an oasis to disconnect from the street”.

In addition, fast food restaurants have an interesting formula since they are also aimed at families, who must also adapt. “Let’s take McDonald’s as an example [which is defined in India as a” family restaurant “]. In terms of marketing, they organize children’s parties, which is very attractive – we are celebrating birthdays today, which was not the case before. But people live in very small housing, so this type of offer is a facilitator.

An inevitable adaptation:

As Serge Granger recalls, even though Indians generally welcome foreign banners, to seduce them, we must look at the reality of the country, where half of the restaurants are only vegetarian. “Restaurants must take into consideration the eating and cooking habits of the host countries if they want to increase their share. This type of market also presents several challenges where ingredients (beef, pork, eggs) but also handling (cold chain, distribution network) are puzzles. “

According to him, brands that want to grow know that it is a volatile market and that supply and demand must be adapted to the reality on the ground. Under the current Hindu government, the rules on culling cows are hardening, and no chain wants to get cold with him for such an issue. “But when you think about it, even here, the Oriental products that we find are often” westernized “. Adaptation to local taste is a normal and necessary phenomenon. Restaurants should not limit their menu. Even here, McDonald’s is starting to sell a lot of salad, it may seem far from its typical menu, but they respond to a very real demand. “

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