Primark can follow the following strategies to have successful performance in business in India. Primark should partner and build relationships with with rooted local partners and with people of the country who have a say politically. Primark can also make use of sustainable and community programs and must engage in legitimate lobbying.
Political and legal :
Primark must strive to work with relevant bodies to apply for legal policies. Primark has a negative reputation when it comes to rights of workers and condition of employment. Therefore, primark can improve these areas. Primark must make informed hedging decisions and must look at various strategies into its risk exposure backed by professional treasurers, an efficient back office and good forecasting techniques.
Primark must follow a joint venture which includes two or more business entities for mutual economic benefit. As India requiurss it’s foreign investments to be a joint venture it will make it easier for primark to have a stable capital growth. Primark should sought joint ventures to hold majority stake therefore a tighter control. Joint ventures have the advantage of sharing the costs and risks of opening a foreign market and to acquire local knowledge and political influence. The disadvantages include the risk of losing control over technology and the lack of strict control.
Considering India it is important for any foreign company which plans to start a business in India to change their focus point from forming global strategies to adapt to the local market conditions thereby becoming glocal brands that are characterized by both global and local considerations. This is possible in India if Primark decides to manufacture locally by producing products with Indianised variants of taste, preference etc. It is important to follow “Made In India, Only For India” stating that “Now for most of the successful MNCs operating in India, exclusively for India has become an integral part of their overall product development strategy”. For example, primark must focus on the store and sample products to create a strong first impression and Seasonal promotional campaigns, new lines of collections during festivals etc can be followed. The company should expand in big metropolitan cities in India like Mumbai and Delhi and also improve its supply of chain network locally. This will be quite easy for Primark since it already has its manufacturing units in India. Primark must find ways to build its brand reputation, image and equity even if it is not through advertisements and must strive to match the market share and volume of sales with its local and global competitors.
Primark can incorporate it’s innovative, engaging and impactful website and promote it’s primania social networking platform for customers to be technologically engaged with the brand. Primark invests more on their women customers. This is evident in primark’s vast floor space for women’s clothing, dedicated clothing line and window posters. In India according to a report by Neilson Maiden on shoppers behaviour men in India buy more online clothes than women almost up to 70%. Therefore it would be a big boon to primark if they were to open online shopping facilities in India.
Primark Can tackle water scarcity by using methods which make use of sustainable cotton that is produced through various sustainable farming programmes. The company can also recycle and reuse processed water by which they can save a lot of water. By following these strategies Primark Can tackle the water scarcity which is to worsen in India in the coming years.
These are few strategies that Primark can use to overcome risk in India.