New market entry 101
Hard Truths for Indie Beauty Brands Expanding to India and the Middle East
The beauty and personal care industry is witnessing a rapid rise in independent, innovative brands that disrupt the status quo. Many of these new-generation indie brands, having proven their mettle in home markets, are eager to enter high-growth territories like India, the Middle East, and the UAE. If you're one of them, you might think expanding into these regions is a logical next step.
However, before you pack your bags and set out on your expansion journey, let’s cut through the glamour and the theory. Entering new markets like India and the Middle East isn’t about fancy boardroom discussions or endless PowerPoint presentations. It’s about being on the ground, learning the ropes, working smarter than you ever have, and embracing the complexities that come with these diverse, dynamic regions.
Here’s a guide—born from decades of hands-on experience in these regions—on how to actually succeed in this challenging yet rewarding venture.
1. Know Your Market Beyond Numbers
Every new-market entry strategy begins with research, but here’s the catch: markets like India and the Middle East are not defined by simple numbers and glossy reports. You might hear phrases like “growing middle class” and “rising disposable incomes,” but don’t be fooled into thinking it’s as straightforward as that. These markets are fragmented. In India, what works in Mumbai may fall flat in a smaller city like Jaipur. In the Middle East, consumers in Dubai will have entirely different expectations than those in Saudi Arabia.
It’s not enough to sit in an air-conditioned office analyzing stats. You need to physically visit these markets, speak to local distributors, retailers, and most importantly—your target customers. You’ll learn more from a conversation with a shop owner in a small Indian town than from weeks spent studying trends from a distance.
2. Hard Work Beats Smart Strategies Alone
Yes, you need a strong market entry strategy. But strategy without execution is useless. In markets like India and the Middle East, where consumer behavior is often unpredictable, execution means being hands-on.
Think you’ll fly in for a week and understand everything? Think again. To understand India, for example, you need to navigate its byzantine regulatory environment, unorganized retail sector, and complex logistics networks. You’ll have to work hard, and often face unexpected challenges—like navigating narrow lanes to meet a local distributor, or traveling across states to find reliable suppliers. You’ll need to adapt quickly and constantly refine your approach on the go. It’s tough, but this is where smart decisions are made.
In the Middle East, don’t underestimate the influence of regional distributors and government regulations. You’ll need to form relationships and alliances, and that requires time, effort, and most of all, patience.
3. Build Real Relationships, Not Just Partnerships
You’ve probably heard about the importance of building local partnerships. While true, here’s an insider tip: it’s not just about transactional partnerships. In markets like India and the Middle East, personal relationships often matter more than anything else. Business here isn’t always done purely through formal contracts or cold calls. Trust is key, and that can take time to establish.
If you’re entering India, it’s not unusual to be invited to your partner’s home for tea or a family event. Accept the invitation. Building these personal connections will pay dividends in the long run. Similarly, in the Middle East, business deals are often built on trust and reputation. Patience and consistency will win you long-term allies.
4. Localization Is Not Optional—It’s Essential
Don’t make the mistake of assuming what worked for your brand in the U.S. or Europe will work in India or the UAE. Both regions have deep-rooted cultural preferences that impact everything from product formulations to packaging design.
In India, consumers prefer beauty and hair care products rooted in Ayurvedic traditions, and clean beauty trends are surging. Packaging preferences lean towards bright, bold colors, but the message should be clear, relatable, and authentic. In the Middle East, there’s growing demand for halal beauty products, and fragrances play a significant role in beauty choices. Your brand messaging here needs to be respectful, sensitive, and, most importantly, tailored to the nuances of the culture.
Localization extends beyond the product itself—it includes marketing, pricing, and distribution channels. It’s not enough to simply translate your marketing material; you need to craft a message that speaks to the cultural context of each country or even city.
5. Stay Agile—The Ground Reality is Always Different
Here’s a reality check: no matter how much research and planning you do, things won’t always go as expected. India and the Middle East are fast-changing markets, where new players can emerge overnight, consumer preferences shift quickly, and regulations change without warning. You’ll need to stay agile.
Your strategy may need constant tweaking. Don’t hesitate to pivot when needed—whether it’s adjusting your product line to suit local tastes or reworking your distribution strategy based on how things pan out on the ground.
6. Navigating Regulations and Bureaucracy
Let’s not sugarcoat it: entering India or the Middle East means dealing with a maze of regulations. India, with its complex tax structure and regulatory compliance (especially after GST implementation), can be challenging. You’ll need the right local partners, from legal experts to supply chain consultants, who know the intricacies of navigating the regulatory environment.
In the Middle East, the rules and regulations vary by country. The UAE is known for its business-friendly environment, but even then, ensuring compliance with product certifications, health regulations, and local laws requires precision and patience. Don’t assume things will be fast. Government processes often take time, and cutting corners isn’t an option.
7. Think Long-Term, but Act Fast
Expanding into India or the Middle East is not a get-rich-quick scheme. These markets require long-term commitment and sustained effort. However, you also need to act fast. Opportunities can come and go quickly, and local competitors often have an advantage. The brands that succeed here are those that think long-term but move quickly to adapt to changes and seize new opportunities as they arise.
While localization is essential, it's equally important to stay true to the soul and essence of your brand. Too much adaptation can dilute what makes your brand unique in the first place. Remember, consumers in India and the Middle East are increasingly sophisticated and connected—they appreciate authenticity. While you must tailor your products and marketing to suit local preferences, never compromise on the core values, vision, and quality that define your brand. Successful brands strike a balance between respecting local nuances and maintaining their unique identity, ensuring that they resonate globally while still feeling relevant locally.
Conclusion: Boots on the Ground, Not Slides on the Screen
Ultimately, entering new markets like India and the Middle East isn’t about creating the perfect strategy on paper. It’s about being on the ground, getting your hands dirty, and putting in the hard work. It’s about working smartly by leveraging local insights and adapting on the fly, but also working hard by building relationships and being persistent.
If your team is prepared to go beyond boardroom strategies and truly understand the complexities and potential of these regions, the rewards can be immense. You just need to step out of the comfort of the office, into the reality of the market.