How you can obtain truly binding market information in India – market research and market analysis India for practitioners.
Ten to fifteen years ago there was hardly any useful information about the Indian market. That has changed fundamentally in the meantime. Today, all sorts of national and international associations and institutions regularly publish countless market studies, industry reports and economic reports.
But you have to look at this information with a clear eye. The data presented therein on the absolute market size and growth rates certainly provide an initial indication of future market development in India. But if you want to derive a useful sales strategy for a European provider of niche technologies on the Indian market, that would be bold, not to say risky.
The official figures rarely offer added value for your own business. And the most burning questions of an entrepreneur in India cannot be answered from this:
- The market for that is big my (!) company really?
- Who are the most attractive customers for my products? Which Market segment can I realistically achieve today (!)?
- What Projects are really (!) hot (and where am I wasting my resources)?
- Which customers and networks should I even avoid (for various reasons)?
- Who are mine? direct and above all: who are mine indirect (!) competitors?
In short: Where official market research ends, real market research begins in practice.
Note: Information is always personal in India!
Most European entrepreneurs get the market assessment of their business directly from their current or future partners on site in India. After all, the general view is that they are the ones who know the Indian market very well.
In India, information is always personal.
Unfortunately, it is often forgotten that in India you basically have to assess every piece of information as filtered and subjective. This means your Indian sales partner will always have a plausible reason why business went worse than planned in the last quarter.
The future sales director knows full well that his exclusive access to the market will ensure your product has almost endless market potential (which unfortunately rarely materializes in practice...). And a lost lead certainly won't tell you the real reasons why they ultimately decided against your offer. (see article: Price is usually not the problem when selling in India!)
This is not necessarily due to India, but simply in the nature of the matter: someone directly affected cannot maintain objectivity. In India, however, people still tend to exaggerate.
If you are active in the Indian market yourself and in your own name Market Research and obtain information, you will probably never receive an objective and unfiltered assessment of the market size, market potential and your business model.
Furthermore, in India, self-perception (coupled with a tendency to overestimate oneself) and the perception of others are often very far apart. Unfortunately - from our point of view - this subjective information from India is rarely sufficiently questioned in Europe and validated by independent third parties. It is actually surprising to us how subjectively and sometimes even naively many German companies assess their own activities in India. (See specialist article: Lack of transparency in the Indian market) Unfortunately, incorrect information and assumptions often result in wrong decisions that later cost a lot of time and money.
Practical market analysis India: In order to get a truly objective picture of the Indian market, market data and market information must be obtained from independent third parties who listen to the market for you.
Market Research in India: Formal and Informal Sources
One of the most important methods in market research and market analysis in India are expert interviews: the official and systematic approach of all market participants such as industry experts, competitors, associations, sales intermediaries, employees, potential customers and suppliers to obtain information. But: This directly obtained information must also be fundamentally critically questioned and validated using additional sources.
Informal networks in India may not be efficient, but they are even more effective.
Often it is informal communication channel but the best and only way to find out where there are realistic sales opportunities in India. The actual completion rate (from inquiry to completion) is many times lower in India than in Germany, for example. Likewise, an official advertisement does not necessarily mean a concrete sales opportunity for you. In our own investigations, we found that only a fraction of the projects advertised were actually concrete and realistic. The remaining calls for tender served only to obtain information and at least partially outsource the specifications.
So that you don't get lost or lost in this thicket, you can find information from your own and others in the Indian market informal networks reliant. What may sound like “industrial espionage” and “secret service” to us is, in sales practice in India, the completely normal spinning and use of informal networks.
India is known for the fact that information travels to where it is needed at the speed of light. Furthermore, in India there are no secrets “on equal terms”. This applies at the level of owners, managing directors, managers and specialists right down to ordinary workers. It is therefore necessary to use other hierarchy levels when gathering information.
Take advantage of this fact, because your Indian partners also do the same. Information carriers at all levels must be identified that could help you, because this is the only way you can ultimately answer the really crucial questions:
- Are the statements made by my sales representative or my subsidiary regarding the realizable market potential correct?
- Why did I lose this or that project?
- How can I distinguish and prioritize important leads from unimportant ones?
Tangible market analyzes for realistic market assessments
Our “Market Information” team is often used by our customers to listen to the target market and obtain the crucial discreet, non-public market information. Our market analyzes therefore go far beyond desk research and take place directly in the real target market.
In order to find out whether a tender or sales opportunity is real and whether a customer is really seriously interested in making a purchase decision, we build useful information channels for our customers.
As mystery shoppers, for example, we carry out mock purchases and, so to speak, test our customer's Indian sales organization. Using lost order analyzes we have the opportunity to examine offers that did not result in an order with regard to the actual reasons for rejection and to identify potential for improvement in the sales process and strategy.
We would be happy to share with you relevant case studies on market analysis and information gathering in India. Find out more in our specialist area WB Market Solutions.
