Sephora's Next Destination: India

Sephora Cosmetics have been expanding greatly due to the innovation of new products and millions of clientele. Consumers world-wide have the opportunity to purchase Sephora products within their own country. It is important to be aware of those emerging countries whose economies are steadily growing. These are the countries that provide great opportunities for businesses of all sorts. Among the highly potential, India's gradual economic growth proves it to be a likely candidate for the expansion of Sephora.

Purpose

Since the company's sales have decreasing, expanding to India will give Sephora a chance to target a country with great potential to increase sales. This report will introduce India's social and business culture and a brief description of the country. This information is crucial when expanding to a new country.

When researching a country's social and business culture, it is necessary to include several criteria or topics that will be used to cover the report. These criteria are:

• Geography/ Climate

• Economics

• Business culture

• Social customs

• Greetings

• Language

• Body language

• Clothing/ Business dress

• Food

• Politics/ Military

• Religion/ Holidays

• Currency

• Business women

• Conversation

Greetings

The traditional Indian greeting is called Namaskar. This is done by rasing one's hands and holding them together resembling the hand position in Chrisitian praying. Namaskar is done with a slight bow. Both people greet each other usually by saying the Hindi word Namaste, which means "I salute the divine within you". This gesture can be done when greeting someone as well as departing. Even though there are many different types of religious and ethic groups, usually the same gesture is used (Dun & Bradstreet's Guide). It is also important to greet the oldest person in the group first.

Addressing an Indian

Unless a person asks to be called by his/her first name, it is appropriate to begin with Mr., Mrs., Miss, Doctor, or Professor. Therefore, people are only called their name without the prefix such as Mr., when they are addressed by family member, acquaintances or a superior (Executive Planet).

Names

When greeting an Indian, one should know the structure of an Indian name. in North India, most people adapted the Western style which is first name then last name (Executive Planet). in the southern states, men do not have a family name. a Southern Indian name will consist of one's father's name and/or the ancestral town, and then one's first name. The first parts of the name are abbreviated (Executive Planet). Women usually take their husbands name. This differs from the north to the south. In the north, a women will take the family name, and in the south , she will take her husbands first name as her last.

Handshakes

Foriegners that do business with Indians may be offered a handshake (Dun & Bradstreet's Guide). The handshake would replace the traditional greeting. A man should also make sure not to shake hands with an Indian woman unless she initiates the handshake first.

Business Culture

In the business world, building good relationships with decision makers is very important. Personal relationships play an important role in business relationships (Dun & Bradstreet's guide). An Indian will try and continue to be friendly and might have trouble saying "no". it is important to avoid asking questions which can only be answered with a "yes" or "no" response. Asking open ended questions give Indians a chance to express their opinions (Craighead's).

Time and Urgency

There are huge differences between Indian and American views of time. Business decisions are made after much decision and are not rushed. Patience is valued in the Indian business world and they do not feel if is necessary to be urgent (Dun & Bradstreet's Guide). As a foreign businessperson you are expected to be relatively prompt but punctuality is not considered as a virtue in India (Dun & Bradstreet's Guide). One thing that is similar between India and the West are the use of western 'Christian' calendars for business. But dates are written as dd/mm/yy, instead of mm/dd/yy (Executive Planet).

Appointments

Appointments should be scheduled at least a couple of months ahead. Also, it is better to reconfirm the planned meeting several before (Executive Planet). Indian executives prefer to have appointments in the late morning or early afternoon between 11:00am and 4:00pm (Dun & Bradstreet's Guide). Due to the highly crowded roads and high traffic, it is encouraged to make efforts to be early in order to keep an appointment. One will find difficulty when trying to get an appointment with government officials. When making an appointment with government officials, one should keep in mind that there is a chance that the appointment will be rescheduled or the person may be very late (Executive Planet). Business appointments with an Indian may not always be private. There could be an unannounced person sitting in on the meeting. This person could be a decision maker or even a family member (Dun & Bradstreet's Guide). Dinner appointments will be less likely to be in India. These events are mostly for socializing and take place at large gatherings (Executive Planet). The Financial Year is calculated from April to March. March is a very busy month due to the end of the Financial Year, so avoiding scheduling an appointment around this time is best.

Work Week

Indian business hours are Monday through Friday 9:30am to 5:00pm. Lunch takes place between 1:00pm to 2:00pm (Dun & Bradstreet's Guide). Bank hours are 10:00am to 2pm on Monday through Friday, and Saturday, 10:00am to noon. Government offices are closed the second Saturday of each month. Most Indians take vacations during the summer which is April through June, mid-December to mid-January. Muslim employees are affected by Muslim religious days during the regular work week. There are certain times of the day for prayer.

Language

According to the Constitution, the official national language spoken is Hindi and English is the co-official language (Executive Planet). Thirty percent of people in India speak Hindi even though English is used for political, commercial and national communication (CIA). There are fourteen other languages in India that are official. Those are Bengali, Telugu, Marathi, Tamil, Urdu, Gujarati, Malayalam, Kannada, Oriya, Punjabi, Assamese, Kashmiri, Sindhi, and Sanskrit (CIA). Also, there are about 1,600 other languages that are official (Executive Planet).

Communicating Through Business Cards

A helpful strategy for communicating is the exchange of business cards. Business cards are very important when dealing in Indian business (Executive Planet). These are distributed in business and non-business situations. It is not necessary to get cards translated from English because it is a common language (Executive Planet).

Indian English

There many native forms of English because of how widely it is spoken throughout India. There are phrases and words in English that contain different meanings in various locations in India. Because of the differences between English and Indian style English, it is not considered to be rude if an Indian asked to repeat what was said slowly (Executive Planet).

Body Language

When agreeing with someone, an Indian will shake their head from side. This is reversed from North America, where nodding the head symbolizes that one is in agreement. The nodding movement of head means 'no' in India (Dun& Bradstreet's Guide). Also, loud voices, whistling, and winking are believed to be impolite (Craighead's). Whistling and winking are interpreted as behaviors that have sexual meanings.

Head and Feet

Another difference between western culture and Indian culture is that the soles of feet are not to be shown. Shoes or feet should not touch another person. An apology should be offered immediately if this happens to occur (Craighead's ). As well as feet, the head should not be touched by another person. The head is considered to be sacred and believed to be the temple of the soul.

Eye Contact

Indians, especially women, feel uncomfortable with eye contact that lasts too long (Craighead's). Even though excessive eye contact will be intrusive to Indians, they will often stare at a foreigner because they are curious (Executive Planet).

Hand Gestures

Hand gestures can be easily mistaken as negative symbols. For example, one should not point their finger at someone. This gesture can be interpreted as one which is accusing someone else (Executive Planet). Having hands on the hips while standing is a posture that is seen as dominating. This stance is aggressive and should not be made (Executive Planet). Hands are always being used while in conversation. In contrast, hands in one's pockets or folding hands while in a conversation will be perceived as arrogant. Using excessive hand gestures is considered to be impolite.

Politics and Government

India gained freedom from Britain in 1947 (Executive Planet). Because of this, India adopted the British-style Parliament system Democracy (U.S. Department of State). The Constitution, which is very similar to the western democracies, was adopted in 1949. India is the world's largest democracy and has seven national political parties, and more than 40 parties that were recognized by the Election Commission (Executive Planet). These positions are elected by the Indian people 18 years of age and older (Executive Planet).

Leaders

The president is the head of state, but the legistive power is held in the council of ministries which is run by the Prime minister (Executive Planet). Presidents of India usually have very little powers. After general elections, the President has the power to decide which party or person should form the central government (BBC News).

The President

The President of India is currently Pratibha Patil. In July 2007, she became India's first female president. She was voted into office by the members of the national parliament and state assembles. Before she became president, she was the governor of Rajasthan in northwest India (BBC News).

The Prime Minister

In May 2004, Manmohan Singh became Prime Minister of India. The widow of the former Prime Minister, Sonia Gandhi, refused the position because of her Italian origin. Manmohan Singh's goals were to continue economic reforms and reduce poverty. He wanted to create and maintain friendly relations with the surrounding countries of India, especially Pakistan (BBC News).

India and Pakistan Relations

India has had a difficult relationship with Pakistan, but relations have been gradually getting better. Restored transportation and diplomatic relations are a reason for the progressing relationship between India and Pakistan (Handbook of Country Risk). Pakistan has been India's archrival for many years. Three wars have taken place since 1947. One of the main disputes between India and Pakistan is the claimed territory of Kashmir. Since 2004, peace efforts have been made even though tensions are still not settled (BBC News).

India and U.S. Relations

The United States strives to maintain a strong relationship with India. This is because India an important element in The United States interests. The common interests of the U.S. and India are the free flow of commerce and resources. These resources include the Indian Ocean's essential sea lanes. Under the terms of the 1994 Nuclear Proliferation Act, President Bush lifted imposed sanctions in September 2001, following the 1998 nuclear tests in India. Transforming the U.S. - India bilateral relationship was an issue that was favored topic discussed in a meeting between Prime Minister Vajpayee and President Bush in November 2001. The Next Steps in Strategic Partnership (NSSP) was launched by the U.S. and India in January 2004. This partnership was a plan for further advancement and a highlight in the transformation of the bilateral relationship. The Henry J. Hyde United States-India Peaceful Atomic Cooperation Act was passed by congress in December 2006. This act allows direct civilian nuclear commerce with India. The strategic partnership between India and the U.S. helped complete negotiations on the bilateral agreement for non-violent nuclear cooperation in July 2007. This is also known as the "123 agreement". Governing civil trade, and opening the door for American and Indian firms to participate in each other's civil nuclear energy sector are the main functions of the "123 agreement"( U.S. Department of State).

Military

India has a variety of military branches that provide the defense for the country. The branches include the Army, Central Industrial Security Force, Indo-Tibetan Border Police, Navy, Air Force, Border Security Force, Railway Protection Force, Assam Rifles, National Security, and the Central Industrial Security Force (CIA). There are many forms of National defense. The legal age to join the military service is 16 years old.

Religion

India is made up of many religions. The major beliefs are Hinduism, Islam and Sikh. India also has Christians, Buddhists, Jains and Zoroastrians (Dun & Bradstreet).

Hinduism

Indians are 82% Hindu (Executive Planet). Divided up into many castes, sects and subsects, Hinduism has many creeds and faiths (Executive Planet). Hinduism was formed from Indian Mythology and is not traced back to a founder. It is not a monotheistic religion; Hinduism has many gods and teaches karma and reincarnation. Hindus do not eat meat or wear leather because they worship cows, leading them to have a vegetarian diet (Dun & Bradstreet's Guide). A main belief is that one must cease committing both bad and good deeds in order to escape the cycles of re-incarnation and achieve nirvana. This task requires for one to have no intervention with humanity (Dun & Bradstreet's Guide). Indians still have a political structure, but a major part of their personal lives involve religion. This could frequently influence business (Executive Planet). The Bharatiya Janata Party (BJB), is the Hindu nationalist Party (Dun & Bradstreet's Guide).

Islam

A smaller section of India is Muslim (Dun & Bradstreet's Guide). But in Kashmir India, Muslims make up the majority (Executive Planet). Islam is a monotheistic religion with ties to Christianity and Judaism. Their main belief is to surrender to Allah's will (Dun & Bradstreet's Guide). Muslims who strictly observe their faith prohibit consumption of alcohol and pork (Dun & Bradstreet's Guide).

Sikh

About 2% of Indians have the Sikh faith. Hindi and Islamic doctrines make up Sikh (Dun & Bradstreet's Guide). Unlike Hindus, Sikhs reject the concept of non-intervention with the world. However, they do believe in reincarnation. Sikhs are mostly found in Punjab.

Economics

Since 1991, India has been opening its economy to foreign investors (handbook of country risk). India has achieved balanced economic growth due to the rapid expansion of middle class consumers, exports and investments (Trading Safely). "The booming economy is likely to keep the United Progressive Alliance (UPA) government, led by the Indian National Congress party, in power until early 2009, when the next general election is expected to take place" (The Economist). India has been acknowledged as one of the ten "Big Emerging Markets" (Dun & Bradstreet's).

Agriculture

The economy has a mix of traditional village farming, current agriculture, and a high amount of support services (Dun & Bradstreet's Guide). Agriculture products include rice, water buffalo, sheep, tea, oilseed, potatoes, poultry, cotton, jute, cattle, goats, wheat, and fish (CIA).

Exports

India's main exports include leather products, textile goods, software services and technology, agricultural goods, engineering goods, gems and jewelry, and chemicals (BBC News).

Industries

India's main industries are machinery, food processing, cement, textiles, software, chemicals, mining, technical equipment, petroleum, and steel.

Involvement with U.S.

India's leading foreign investor and trading partner is the United States (Dun & Bradstreet's Guide). In 2006, bilateral trade between India and the United States was $32 billion (U.S. Department of State). The main U.S. exports are aircrafts and parts, advanced machinery, computer hardware, diagnostic or lab reagents, fertilizers, cotton, and scrap metals. Major imports to the United States from India are agricultural products, chemicals, ready-made garments, gems and jewelry, Internet-enabled services, and leather products (U.S. Department of State).

Economic Growth/ Goals

India's GDP is $1 trillion (U.S. Dept. of State). "In coming years, India should remain in strong growth cycle, driven by high saving and investment rates, the prosperity of competitive groups, and development of a middle class that has spurred consumption in a favorable demographic context" (Trading Safely).