... but follows very clear rules that you first have to understand in order to do business in India.
To us Europeans, India usually appears “chaotic”. Everything seems to be going haywire: traffic, life in cities, the world of work, business life. There doesn't seem to be any order anywhere, not even in the economy.
India Sales: Like at the bazaar!
Markets in India seem unorganized, the value chains are not recognizable as such, there are no functioning logistics and no reliable quality management. Communication takes place verbally – and nothing is documented anyway. And if so, what is written is only valid for a very short time and the reality looks completely different the next day. Therefore, you cannot rely on anything or anyone. They neither recognize efficient processes nor clear structures. The competition is competitive, the number of substitute products is unmanageable, and the price war is relentless.
In short: chaos reigns...
…at least from a European perspective!
During your next trip to India, be sure to visit an ancient Indian bazaar in its original form! There you will learn more about business in India than in days-long seminars. Thousands of street vendors offer millions upon millions of different goods. All the stalls are packed with people: fabrics, food, spices, religious objects, but also electronics, music, jewelry, toys, cosmetics, antiques and handicrafts - at every stall. The crowds push their way through the narrow streets between the rows of shops. The sellers loudly advertise for customers. The selection is unmanageable and you wonder who should buy it all.
But people buy. As different as the products are, the customers and behavior patterns are obviously as different. At the end of the day everyone seems somewhat satisfied. The dealers sell their goods at a profit and the buyers are satisfied with the products they purchased - and the discount they got.
There can therefore be no question of chaos (Greek: “state of complete disorder or confusion”). The only thing that is confused here is the Western observer who doesn't recognize the structures.
The market works!
According to the Wikipedia The term “market” describes the place where goods are traded or exchanged. In a broader sense, the term describes the regulated combination of supply and demand for goods, services and rights.
“Even from a market perspective, India functions no more inefficiently than Germany or Europe”said Mike D. Batra, Managing Director of Dr. Wamser + Batra GmbH and head of the WB market solutions ® department. The transactions and exchange of money and goods also work wonderfully in India - perhaps even more efficiently than here, where a lot of money is often spent on marketing and advertising in order to ensure more sales in saturated markets.
Market activity in India simply follows different patterns than we are used to. Next time observe the behavior of the market more consciously and without judgment. Don't try to change what you can't change. The ancient Indians already knew that you can only be happy if you change yourself.
WB market solutions ® – the department of Dr. Wamser + Batra GmbH, which specializes in all questions about the Indian market and the development of a sales network in India.
If you would like to get to know the Indian market and its “special features” better or would like to know how you, your company and your products need to adapt to India, please contact us or read ours blog Article on the topic of 'India Sales'.
