Successfully exporting to India is not done without an agent or distributor. A collaboration like this provides access to local market knowledge as well as a sales team with an established network. But how do you find a distributor in India with whom you can conquer the Indian market? Consultancy firm IndiaConnected offers five tips for European entrepreneurs to find a suitable Indian business partner.
The formal routes rarely lead to a suitable business partner in India, so it is important to use your network to find a reliable distributor. Start by networking in Europe with entrepreneurs who are already active in India or through organizations and institutions with experience in India. From there, you can expand your network by going to India for work.
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 generate immediate results in business terms, but it is critical to achieving a successful relationship in India. 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 seriously interested.
India is a country of hierarchy and networks. For your business partner to be successful, the network and social background of the potential distributor in India is extremely important. Try to find out what kind of reputation the company has in India, how influential the distributor and/or the family is and whether there are good contacts with the (local) government.
It is important to realize that you are not only working with your Indian business partner but also with their family. Therefore, show interest in the Indian distributor’s family and, if possible, also try to build a relationship with them so that you know what interests are at play in the background. Do not, under any circumstances, turn down an invitation to the business partner’s home for dinner or to attend a cousin’s wedding. These are important moments when a relationship of trust takes shape for finding distributor in India. On the other hand, in India people also expect openness about your private life. This is often one of the nicest parts of doing business in India.
In India, a signed contract has much less value than in Europe. So start small: send a sample or a small trial shipment. If the potential partner is willing to pay for this, it’s a strong, positive signal and you can expand the cooperation.