Published on October 27.10.2021th, XNUMX in the AHV.NRW magazine.
In the ranking of national economies, India is in fifth place and is therefore by no means lagging behind 'the big ones'. According to the economic growth rate, India will be ready to climb further to the top in a few years. A good reason to consider the country now as a sales and procurement market or as your own location.
The good reputation of German products has already reached India. These are not only considered to be of high quality, but are also popular to buy. There is enormous potential for sales, after all, the Indian population is growing at around 15 million per year - and this means that the middle and upper classes with purchasing power, which are particularly relevant for German products, are also growing.
Entry into the Indian market
Market entry often starts in small steps in order to minimize the risk. A kind of test, for example with a local partner, that shows how high the potential of your own products is in the Indian market. By selling your own products with a distributor and/or your first employee in India, you will end up on the subcontinent in a few years with local added value, adapted products and regional export potential within Asia.
Just a few years ago, the focus was on cost reduction: getting as much as possible for as little money as possible. In the wake of the pandemic, the rethinking of supply chains towards risk minimization and sustainability has increased. The supply chain law passed in June 2021 also underpins the changes. The law comes into force in 2023 and ensures the Corporate Social Responsibility of the companies.
Even if the potential is often underestimated: the Indian market is already attractive for many German industrial sectors, and the future forecast is geared towards growth. A good moment to invest in the future and be there when India becomes increasingly important as a target market in the next few years.
Overcome the inhibition threshold
It is undisputed that the clocks tick differently in India. You can't assume that you can copy&paste For example, you can copy existing sales approaches and paste them into India. It is utopian that they still work there in the same way as in Europe. The cultural differences in everyday business life as well as the compatibility of the products in terms of functionality and price play a major role. However, with an open approach and competent support, many ideas can be implemented. Our senior experts are convinced that humor and composure are at least as important.
When dealing with Indian business partners, communication is the focus. A personal connection creates a basis of trust without which you cannot do business in India. So how do you get connected if you haven't been able to build your own local network yet?
India offers potential and at the same time creates challenges.
Without a personal network, you won't even get into conversation with many potential business partners. If you do manage to do it, you will usually not receive the best possible offer. In order to identify the top class of efficient suppliers, cooperation partners and customers, many medium-sized companies rely on independent experts - like Dr. Wamser + Batra – back.
Individual partial services such as finding a partner or setting up a company are not the key to success. They are part of it and are essential. But we at WB are convinced that this is the case big picture must be in focus. Because just founding a company isn't enough - what happens next with staff and sales? What legal, business consequences can we face in the next step after that?
