Many medium-sized companies only venture into the Indian market in small steps. However, if you have an attractive product or technology that is visibly different from the Indian competition, “entering the Indian market” can also make sense for a smaller company. However, due to the usually limited financial possibilities, cooperation with an Indian dealer or distributor is often the only way to reach the target (market).
“Commissioner Chance” and the search for sales partners in practice
Today there are probably several thousand Indian sales representatives who work for European medium-sized companies in India.
Typically, such collaborations begin at a trade fair or other Indian event with the words of an Indian agent: “I want to do business with you.” Since the risk of this non-binding market entry seems manageable, very few producers hesitate to jump straight in, often without further examining the actual performance of the future business partner. But even sales representatives who are recommended by an association or the Chamber of Commerce “on an official list” escape a careful assessment of their true suitability.
And so it happens that very few collaborations with Indian sales representatives actually achieve the hoped-for - and promised - business success (see specialist article Sales representatives: suboptimal sales form for India!?) Often the Indian partner even “misuses” the brand and the hoped-for market access is largely missed.
A structured approach to entering the Indian market is worthwhile
Indian market entry: first contacts
The owners of a medium-sized company are rarely interested in extensive market research and comprehensive market information; instead, they make decisions intuitively. This is why ours are based market analyses exclusively on business practice and we provide our customers with exactly the information and contacts that enable a truly efficient market entry in India.
In our daily work we can observe that “Commissioner Chance” has rarely been a good advisor when looking for business partners in India. That's why we don't just provide contacts, we also "develop" tailor-made business partners for our customers with whom we can work successfully in the long term - especially as a family business.
Project flow for the distributor search (a rough diagram)
Our responsibility does not stop with identifying a potential partner. Rather, we qualify potential partners and only forge collaborations with our clients that, based on our experience on the Indian market, are productive.
- Screening & Search Profile: Together with the customer, we create a search profile that we further refine together over the course of the project.
- Long list: On this basis, we conduct “multi-pronged” research using databases, recommendations, associations and our own network of potential distributors.
- We use databases to identify all those companies that are already active in the sale of this or a complementary product group (current players).
- We rely on our own local network, especially our own customers. Thanks to our consulting work in India for almost 15 years, we can approach over 200 customers from a wide range of industries and use their experience and market access.
- Depending on requirements, we also bring an external expert (industry insider) on board for the project.
- Qualification of the targets: All necessary information is collected through references and industry contacts as well as through your own approach.
- It is agreed with the client right from the start which information he would like to disclose publicly or whether he would prefer to keep it secret.
- To obtain information, our colleagues on site sometimes pretend to be buyers in order to get a realistic picture.
- By conducting semi-structured interviews, all important characteristics of a potential partner can be determined: product range, regional reach, exclusivity, competitor products, complementary products, number of employees, etc.
- Shortlist & Address: In the next step, a shortlist is created together with the customer. The contacts identified in this way are then examined in more detail and further details are clarified. We also thoroughly check the good reputation of these companies. Now it is time to evaluate the distributor's basic willingness and to have the first telephone conversations between him and the European producer.
- Travel to India and conclusion of the contract: When 1 to 3 potential business partners have finally emerged, a “market exploration trip” to India is definitely recommended. A personal meeting with the potential distributors is an absolute prerequisite for later cooperation. A concrete agreement can usually be prepared in direct conversation and with our support. After a thorough review of the conversation and an independent assessment on our part, nothing stands in the way of concluding a contract and successfully entering the Indian market.
More information about entering the Indian market and initial business contact.
