How brands strategise to tap sales into global markets

In 2018, Xiaomi mobile phones entered the Indian market. And then, in a short span of time, these phones began to sell like hot cakes in India. Why so? Because the China-based company, also known as ‘China’s Apple’ provided very similar features and functions in their mobile phones as that of the global giant ‘Apple’. This drew people of the Indian middle-class to the brand who found value for money in their products. What more?  They adapted to the method of online exporting. In doing so, the company saved its costs and was able to sell their products without having a single store in the country.

These kinds of strategies are very common for global brands to succeed in International markets.  Apeejay School of Management Assistant Professor Anuj Kumar, who was invited as a guest lecturer at Vietnam National University, Hanoi on May 6, 2022 discussed how entry strategy and strategic alliances aid brands to sell their commodities by the simple process of ‘acculturation.’ Fifty students at the university attended this session.  

During the lecture, Professor Kumar focused on three types of market entry strategies i.e. franchising, licensing, exporting and joint ventures. He exemplified the same with brand case studies such as Xiaomi. He also discussed the global chain McDonald’s, whose market strategy is based on licensing and franchising in India. He said, “In our country,  McDonald’s  is our go-to place for burgers. The success of the brand didn’t happen in a day.

When  McDonald’s entered India in 1996, they faced a backlash because they sold pork and beef. Drawing from this experience, the company has now become sensitive to Indian culture. They then focussed on vegetarianism and launched the famous McAloo Tikki burger in just 20 Indian rupees. And now, they have even come up with burgers that consist of Indian flavours and spices.” However, he also explained that strategies such as these may not be a sure shot method to tap into unknown markets. He shared how in Vietnamese markets  McDonald’s does not enjoy the same success because the people there are largely oriented towards street food.  

He concluded the lecture by opining about the cultural complexities in joint-venture markets. Students and faculty of the Vietnam National University found the session engaging and informative.