Evolution of Indian brands: From local to global players

By Amit Mathur

Indian brands have embarked on a transformation journey over the years. Initially, they were predominantly local players catering to domestic markets, but they have evolved into global contenders that command recognition and respect worldwide. This evolution is a testament to the adaptability, innovation and resilience of Indian businesses. In today’s fiercely competitive global marketplace, Indian brands have emerged as formidable contenders, effectively challenging their multinational counterparts on various fronts. This growth trajectory has not only reshaped the marketplace but also provided consumers with a wider array of choices.

In the early post-independence years of India, Indian brands were primarily local and niche players. They served regional markets with products that catered to specific cultural and economic needs. These brands were often characterised by their close ties to traditional craftsmanship and time-honoured practices. While they were well-loved within their communities, their reach was limited. However, with time, corporate leaders recognised the need to expand the horizons of their brands. This strategic shift involved a deeper understanding of consumer needs and preferences, leading to the development of products and services that resonated with a broader audience.

The 21st century witnessed the emergence of Indian multinational corporations (MNCs) that made a significant impact on the global stage. Companies such as Tata, Reliance, and Infosys expanded their operations across continents, diversifying into sectors such as IT, telecommunications and automotive. These Indian MNCs not only competed effectively with international giants but also became sources of national pride.

While this transformation was taking place in India, numerous medium and small-scale manufacturers needed government support to compete with their international counterparts. One of the major challenges of manufacturing in India was infrastructure, but over the last decade, the government has made substantial efforts to develop better infrastructure, including roads, an expanded rail network and improved ports, among other policy decisions, to support manufacturers.

One of the major pushes that is witnessed by the manufacturing sector has come in the form of the ‘Make in India’ initiative by the Government of India, which encourages domestic manufacturing and promotes Indian products on the global stage, playing a crucial role. When the world was struck by the covid-19 pandemic, India was not only able to produce vaccines and manage logistics for their fastest delivery but was also able to export vaccines to other countries. Many other manufacturers also benefited from this initiative, significantly boosting Indian brands including Patanjali and Fabindia, enabling them to showcase their quality and competitiveness on a global platform. It has also reduced dependency on imports and further strengthened the Indian brand.

Few of the driving forces for the growth and popularity of various brands positioned globally and across India could be attributed to the following

Understanding the local dynamics: One key advantage that Indian brands possess is their intimate understanding of local market dynamics. They have the ability to tailor their products and marketing strategies to cater to the unique needs and preferences of Indian consumers. This local insight often translates into cost-effectiveness, as Indian brands can provide quality products at competitive prices, addressing the spending capacity of the average Indian consumer. Further, it also facilitates deep market penetration and fosters goodwill among diverse consumer groups.

Embracing innovation and adaptation: Indian brands have not rested on their laurels; instead, they have actively embraced innovation and adapted swiftly to changing trends. The marketers realised that to compete on a global scale, they needed to meet or exceed international standards. Indian brands invested in research and development, adopted cutting-edge technologies and embraced best practices to ensure that their products and services were world-class. This agility has been a pivotal factor in their competitiveness. It’s worth noting that Indian brands are not confined to traditional sectors alone; they are expanding into new territories, developing smart products that resonate with contemporary consumers. In addition, the Indian companies are investing heavily into data analytics, AI for personalised customer experiences, automation in production and digital marketing through social media and e-commerce platforms as standard practices, ensuring brand visibility and operational efficiency.

Balancing competitive pricing and profitability: Balancing competitive pricing with sustained profitability is a strategic imperative for Indian brands. They leverage local resources, skilled labour and production efficiencies to offer competitive prices without compromising their bottom line. Furthermore, Indian brands focus on augmenting product attributes, quality and customer experience to fortify their position in the market. Cost-effectiveness in comparison to a multinational brand always plays an important role in a competitive market where Indian brands are constantly pitched against their foreign counterparts. Indian brands can often provide quality products at competitive prices due to lower production costs. The distribution network and reach of Indian brands have also been pivotal in their competitiveness. Collaborating with experienced local distributors who understand regional markets facilitates quicker market penetration. Efficiency in supply chain logistics, coupled with technology-driven solutions, enhances distribution effectiveness.

Collaborations and partnerships: Collaborations with international entities have provided Indian brands with unique advantages. Maruti was a loved brand of Indian origin but when they collaborated with Suzuki Motors, it brought in advanced technology and global design expertise, enhancing its competitive edge in the automotive market. Similarly, Tatas brought Jaguar Land Rover which was one of the classic examples of how ties with international entities give one a competitive edge over the others. Currently, it produces a few of the top luxury cars in the world. These partnerships enable knowledge exchange, access to new markets and innovation through combined resources. They serve as a testament to the ability of Indian brands to adapt and thrive in a dynamic and competitive landscape. This coupled with collaborating with brand ambassadors adds to your visibility and recognition. They can play a significant role in shaping consumer behaviour. Their ability to personify the brand, enhance credibility and project authenticity influences buying decisions. Effective partnerships with brand ambassadors are strategic collaborations that extend beyond immediate sales, shaping long-term brand perception.

Harnessing origin stories as narratives: A sense of national pride and trust in indigenous products has also played a significant role in the success of Indian brands. Consumers increasingly recognise and appreciate the value of products that are ‘Made in India’. This recognition reflects the enduring bond between consumers and brands, where trust is built over time. Indian brands can use their origin stories to create powerful brand narratives that connect with global audiences. By highlighting their cultural heritage, craftsmanship and values, they can foster a sense of authenticity and connection, setting themselves apart in a meaningful way. Indian brands have also learned the importance of cultural sensitivity in their global endeavours. They understood that to succeed internationally, they needed to adapt their products and marketing strategies to local cultures and preferences. Modern Indian brands have diversified their portfolios, offering a wide range of products and services that cater to diverse consumer needs. They have also embraced sustainability and ethical practices, recognising the importance of environmental responsibility and corporate social responsibility in today’s global marketplace.