Switzerland global enterprise: developing market entry strategies for the Indian luxury & lifestyle retail sector

A Swiss luxury and lifestyle retailer wanted to enter the Indian market. To figure out the optimal market entry strategy, the senior executive team approached the Head of the Swiss Business Hub India of Switzerland Global Enterprise, Michael Enderle, in December 2012 to get his advice. Michael knew that although the Indian luxury market was small in comparison to global standards, it had shown a healthy growth over the last few years and was estimated by analysts to be soon 120%-150% larger than its current size. The Government of India had also recently changed important regulatory aspects associated with FDI which might change the future rules in the Indian retail sector for foreign companies. In addition to the dynamic regulations, other major market specific challenges were considered including diversified consumer segments and a still weak retail infrastructure. Therefore, Michael had to analyse the status quo as well as the future outlook for this retail sector to develop a market entry proposal with implications for the Swiss retailer.