Common traits of successful Japanese companies in India and the competitive edge of Dentsu Inc. and Dream Incubator Inc.

India boasts the world's largest population and a rapidly growing market. While attractive to companies, its immense land area and population size, coupled with market complexity, present significant challenges requiring sophisticated localization strategies for entry. To address this, Dentsu Inc. and Dream Incubator Inc. have launched "Go-to-India Solutions," a solution that supports Japanese companies' entry into the Indian market and new business development in India through deep understanding of local consumers and business production capabilities.We explore a new form of co-creation supporting corporate challenges in India, where diversity and rapid growth intersect.

Interviewer: Ken Matsui, Publisher, Nikkei Business

※This content is reprinted from a PR article published in the Nikkei Business Digital Edition SPECIAL on November 14, 2025.
https://special.nikkeibp.co.jp/atclh/ONB/25/dc1_dentsu1205/

Entering India Requires Sound Strategy and Methodology

The Indian market has become a highly attractive candidate for business expansion for Japanese companies. The main reason is that concerns that previously made entry difficult—such as "delayed structural reforms" and "many unknowns"—have been dispelled. Conversely, advantages like Asia's highest growth rate, progress in the digital economy, serving as a refuge from US-China geopolitical risks, being the leader of the Global South, and strong Japan-India relations have increased.

However, the sheer size and diversity of the Indian market also present challenges. These include policy and tax risks, foreign investment regulations, inadequate infrastructure, fierce market competition, long investment payback periods, and resource shortages.Building supply chains and establishing brands in this vast market, where languages and cultures vary by region, is no easy task. This necessitates partners with deep local understanding and risk assessment capabilities. Strategy and marketing, in particular, are likely the two critical pillars essential for success.

Dentsu Inc. and Dream Incubator Inc., having entered India early and established a solid local network, launched "Go-to-India Solutions" to support market entry. They assist Japanese companies with new market entry, expanding local operations, and designing new ventures. Their goal is to identify winning strategies for Japanese companies in India's competitive market, support problem-solving, and guide them toward significant success.

Case 1: Panasonic Contributes to India's Future with the Spirit of "Coexistence and Co-prosperity"

Collaborating with Local Startups Centered on an "Out-to-In" Strategy

Kasai: Panasonic entered the Indian market in the 1970s, but our significant growth in the electrical materials sector began after acquiring local company Anchor Electricals in 2007. To drive further growth through new business creation, we launched the India Startup Acceleration Program "IGNITION" in FY2023, collaborating with local startups to develop new ventures.This strategy, called "Out-to-In," combines the strengths of startups with our brand, extensive product portfolio, and technological capabilities. Rather than starting solely from our own perspective, we aim to leverage the values and ideas of startups, maximizing their strengths.

The theme launched in fiscal year 2024 is "Indian Lifestyle Solutions." We enlisted the expertise of Dentsu Inc. during the phase of selecting startups to collaborate with for business development.

Kagata: Using Dentsu Inc.'s proprietary "Future Mandala" tool, we forecasted Indian society in 2030 across four categories—"Population & Households," "Society & Economy," "Cities & Nature," and "Science & Technology"—identifying 42 future trends. Dentsu India's planners spent hundreds of cumulative hours developing this framework.

We then conducted a workshop with about 15 Indian employees from various Panasonic departments. After sharing India's future trends through the Future Mandala, we deliberately asked them to set aside Panasonic's existing businesses and strategies for a moment. We asked them to think about and propose what kind of value and businesses could be created.

Dentsu Inc. has many Indian marketers and facilitators. They quickly organized the ideas generated by participants and helped identify the direction.

Kasai: I believe it was precisely because the facilitators were local employees of Dentsu Inc. in India, knowledgeable in both idea generation know-how and local culture, that everyone became genuinely committed to thinking about and proposing ideas for their country's future. We were also greatly inspired.

Ultimately, we selected two companies as collaborative partners to launch the project: RayIoT, which possesses Wi-Fi sensing technology, and Euphotic Labs, which manufactures cooking appliances.

Sharing the vision through the "Future Mandala." Pooling what each can contribute.

Kasai: Blindly searching for partners in an unknown market won't work. By having the local team lead the selection of collaboration partners, we were able to heighten their awareness of commercialization.

Kagata: Our "Out-to-In" strategy respects startup culture while integrating Panasonic's strengths. To maximize effectiveness, we avoided diving straight into technical or business discussions. Instead, we first shared our vision for India's future through the Future Mandala and employed a marketing approach where each party contributed their unique strengths. This proved highly effective.

Kasai: Dentsu Inc. is a very reliable partner. Guided by the spirit of "coexistence and co-prosperity" we've cherished since our founding, we will continue to create India's future together with local people.

Case 2: What are the three practical insights Denso learned in India?

Selected for support by the Ministry of Economy, Trade and Industry (METI) and UNIDO. Developed in India and expanded into the US market.

Morimoto: Denso has supplied automotive parts for OEMs (production under partner brands) in India since 1984. While our existing business continues to grow, my mission is to launch the next generation of digital-centric businesses in India's rapidly expanding market.

We developed an integrated digital platform for manufacturing and mobility in India under the brand "Sower." To significantly scale this platform and accelerate its societal implementation, we needed a partner who understood market characteristics and could support our strategy and execution.

Among several proposals we received, we chose Dream Incubator Inc. The deciding factor was their uniquely disruptive ideas. Their approach made our ambitious goal of ¥100 billion in sales feel achievable.

Nishioka: Based on Dream Incubator Inc.'s long-accumulated knowledge and insights into the Indian market, we supported the formulation of a concept and strategy for creating a new digital business. Subsequently, the project was selected for an industrial cooperation program by the Ministry of Economy, Trade and Industry (METI) and the United Nations Industrial Development Organization (UNIDO). Following the conclusion of a Grant Agreement with UNIDO in July 2025, we became co-creation partners and are now working as one team on business development.

Morimoto: With support from METI and UNIDO, we will achieve social implementation by 2027. Beyond that, we plan to expand throughout India and globally. We are adopting a "reverse innovation strategy" to develop low-cost, highly competitive services tailored to Indian market needs and expand into global markets, including the United States ( ).

Three practical insights learned in India: "Building a community" motivates people

Morimoto: While advancing business development in India, we cultivated three key practical insights on the ground. The first is "the power of perseverance." India has a deeply rooted culture called "Jugaad," where people don't fear failure and improve while moving forward. We needed to shift from the Japanese mindset of "quality above all" to one that balances "quality and speed."

The second is "standardization." We adopted IT industry-standard workflows and organizational structures to create a system resilient to India's high talent mobility.

The third is "building a community." We need to increase the number of like-minded individuals who share our vision and commitment. The number of people using Solwer continues to grow. We will continue evolving it into a platform accessible to even more people.

Nishioka: Within this context, our support comprised three major areas. First was "Exploration and Promotion of New Business Themes." Leveraging insights cultivated through our VC investments, we provided end-to-end support—from "theme discovery" to identify promising areas, through strategy formulation, business validation, and fundraising.

The second was "building an organization for new ventures." For Denso to launch a digital business in India, it required creating an organization different from traditional Japanese companies.

Third was "Startup and Policy Collaboration." This aligns with what Mr. Morimoto mentioned about "building partnerships." We supported them by identifying potential collaboration partners in India and conducting research and analysis on digital public infrastructure. As Solwer's solutions gain traction with customers and partner companies who share its vision, we are seeing tangible results from our local support. We will continue to work as one team, accompanying Denso in developing the Indian market.

Case Study: Unicharm's Strategy for Becoming a Top Brand in India

Unicharm operates four businesses—baby care, feminine care, wellness care, and pet care—in approximately 80 countries and regions worldwide. India is one of its key hubs. Since entering the market in 2008, we have advanced our business in close collaboration with the Dentsu Group.

"To succeed in India, three capabilities are essential: ① Product strength that meets consumer needs, ② Retail execution capability to boost exposure and drive trial, and ③ Communication capability to convey product value," states Kenji Takaku, Senior Managing Director at Unicharm.

For ①, Unicharm leverages its strong local research capabilities to consistently understand real consumer needs. For ②, it meticulously adapts to India's unique business practices. For instance, India has numerous small-scale stores, requiring support for over 4 million outlets just for baby care products. For ③, it carefully communicates functional value, emotional value, and self-expression value to embed its categories and brands.

India has a deeply rooted culture valuing social contribution. Centered on the purpose "Contributing to achieving the SDGs," Unicharm champions the mission "Realizing a symbiotic society," the vision "Love Your Possibilities," and the value "Resonance Management." This drives contributions toward a future where people can live authentically and the sustainable "realization of a symbiotic society."

"Go-to-India Solutions" supports Japanese companies. What is the secret to entering and succeeding in India?

The key to success lies in "big-picture strategy." Assess risks and capture insights.

In India's rapidly changing market, strategy and marketing must advance as one. Dream Incubator Inc., strong in strategy formulation, and the Dentsu Group, strong in marketing, form a single team to provide services supporting Japanese companies entering the Indian market.

"Success in the Indian market requires thinking big," says Mr. Nishioka. Start with social issues and connect them to new business opportunities.

"A defining feature of India is its culture that values corporate social contribution. This allows us to leverage the Dentsu Group's strength in considering corporate existence from the consumer's perspective," says Mr. Kagata. He explains they can provide support at any stage, tailored to the client's objectives and situation.

Nishioka described a shared strength of both companies as "skill in risk-taking." "New market entry always involves risk. That's why how you take risks becomes crucial," he said. Dream Incubator Inc., with its extensive incubation track record, is a professional with a keen eye for startups and new ventures, having promoted numerous startup supports (including collaborations with Japanese companies) in India.Over the past nine years, it has invested in 30 Indian companies, producing three unicorns (companies valued at over $1 billion). Dentsu Inc. made its full-scale entry into the Indian market in 2003. With 2,200 Indian employees locally, it already ranks among the top players in India's marketing and advertising world. This partnership represents an unbeatable team as guides through the Indian market.

After the interview

Ken Matsui, Publisher, Nikkei Business

There is no doubt that India will become one of the world's economic powerhouses. I was astonished by how deeply Dentsu Inc. and Dream Incubator Inc. have penetrated this market. It also became clear that entering the Indian market is no easy feat. How they develop their business there and expand it globally as an India-originated venture will become a key factor for Japanese companies to survive and thrive worldwide. I look forward to seeing the role "Go-to-India Solutions" will play.