Successfully exporting to India is not done without an agent or distributor. After all, such a partnership provides access to local market knowledge and a sales team with a ready-made network. But how do you find a reliable Indian distributor with whom you can conquer the Indian market? Consultancy firm IndiaConnected offers five tips for European entrepreneurs to find a suitable Indian business partner.
1. Find a good distributor in India through your network
Formal avenues almost never lead to a suitable business partner in India, so it is important to leverage your network to find a reliable distributor. Start by networking in your home country with entrepreneurs already operating in India or through organizations and agencies with experience in India. From that starting position, you can then expand your network with working visits to India.
2. Build a personal relationship
Once you have found a potential distributor in India, it is very important to put time and energy into building a good personal relationship. This does not yield immediate business benefits, but this is vital in India to achieve a successful partnership. For example, invite the Indian distributor or business partner to Europe. If he is willing to invest time and money in a trip to Europe, this is a clear and positive signal: the potential business partner is professional and has serious interest.
3. Find out how influential the Indian business partner is
India is a country of hierarchy and networking. Therefore, the network and social background of your potential distributor is very important for the extent to which the business partner can operate successfully. Try to find out what kind of reputation the company has in India, how influential the distributor and/or family is and whether there are good contacts with the (local) government.
4. Doing business in India with the whole family
It is important to realize that you are not only working with your Indian business partner, but also with its family. Therefore, show interest in the Indian distributor's family and, if possible, try to establish a relationship with them as well so that you know what interests are involved in the background. On no account turn down an invitation to the business partner's home for dinner or to go along to a cousin's wedding. These are important moments when a relationship of trust takes shape. On the other hand, people in India also expect openness in return regarding your private life. This is often one of the best parts of doing business in India.
5. You don't have a deal until money is in your account
In India, a signed contract has much less value than in Europe. Therefore, start small: send a sample or a small trial shipment. If the potential partner is willing to pay for this, that's a strong, positive signal and you can start building on the collaboration.