STOCK MARKET BSE NSE

Localised approach vital for success overseas

It has to make sense for us from an occupancy point. With time, we have created strong competencies in renovation, asset management, revenue management, and skilling.

Published: 25th November 2018 02:24 AM  |   Last Updated: 25th November 2018 11:40 AM   |  A+A-

Founded in 2011, not only has OYO become India’s largest hospitality company, it is now growing at a breathtaking pace in China, with more than 180,000 rooms under its badge less than a year after its launch. Founder & Group CEO Ritesh Agarwal speaks to  Jonathan Ananda on what makes it tick. Excerpts: 

Why has OYO begun to expand beyond India? 
It has to make sense for us from an occupancy point. With time, we have created strong competencies in renovation, asset management, revenue management, and skilling. We make sure that any activity we do revolves around these competencies. Moreover, we expand to other markets only when a product is mature in our home market. The first thing is to create competencies and then scale in a product in the home market.

Ritesh Agarwal

What opportunities and challenges do you face abroad?
There are always challenges while working in an overseas market. However, we have been lucky to have strong teams… 
For an Asian-built hotel chain like ours, we have identified an opportunity to become the world’s largest chain in the future. We will work towards providing an affordable and trusted stay option for both Indian and international tourists and our rapid expansion overseas suggests that we are on the right track.

How do you plan to take on more established rivals? 
One thing we follow across all our markets is more emphasis on acquiring new customers and retaining existing ones. However, we always adopt an independent approach designed as per the country’s requirements... Moreover, we differentiate from competitors by taking end to end ownership of customer experience — from booking to checking out. 

For an Indian brand, what is the most vital factor to keep in mind while going global?
The most essential aspect while trying to make it big overseas is to understand the market and innovate accordingly. It isn’t necessary that a business model which has worked wonders in the domestic market will flourish internationally. 

It is necessary to adapt... making it crucial to have a proper knowledge of the industry. We have also made our share of mistakes, but what is important is to take these as learnings and take a localised approach to build your business from scratch. 

Are there any unique advantages/disadvantages that come with an Indian brand? 
... when we forayed into China, we saw that the market offered tremendous opportunity both in terms of the market size and travellers. The country’s tourism industry was on the cusp of booming and enjoyed a steady influx of tourists. We identified that its hospitality landscape was as fragmented as India’s. Our expertise in managing a chain of hotels backed by technological innovations and a unique ‘localised’ business model, made it possible to offer high-quality standardised experiences at unmatchable scale.

Is OYO planning to expand to more new markets? 
We plan to expand... focusing on markets in Southeast Asia, the Middle East, and beyond.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

IPL_2020
flipboard facebook twitter whatsapp