Hidden Costs for Indian Brands Expanding Globally

Bharat Mandot, chairman of Stelcore Group, has emphasized that the success of Indian brands in global markets hinges primarily on their backend infrastructure, not marketing. According to Mandot, many Indian companies encounter significant, often hidden, costs when attempting to expand internationally.

Traditionally, Indian brands approached international expansion reactively, responding to foreign inquiries or capitalizing on demand from the Indian diaspora. The playbook is now changing, with businesses planning for global presence from inception, considering pricing, product compliance, taxation, and fulfillment.

Mandot explains that while e-commerce exports are growing rapidly, companies struggle with scaling sustainably. Each market presents its own customs regulations, tax obligations, and local requirements. Without proper infrastructure, growing revenues can erode margins.

Drawing on over 14 years of experience with Stelcore Group, Mandot advises companies to first ensure domestic market economic stability. He also recommends a phased international expansion, validating and establishing one market before moving to the next, avoiding simultaneous launches across multiple countries.