Many companies “fall into” exporting by simply responding to unsolicited inquiries received online or at domestic tradeshows.  An initial order leads to repeat business followed by an international customer requesting permission to sell the company’s products into adjoining countries.  Over time, a company ends up with international exports created by happenstance but not by design.  Getting smart about market selection produces more benefits.  As market entry advisors to exporters entering the Indian market, we recommend a PROACTIVE approach rather than a REACTIVE approach to market selection.   

TWO METHODS OF MARKET SELECTION

REACTIVE: Selecting markets based on domestic exposure.

• LEADS: Leads from overseas markets as an indicator of market potential.
• SALES: Actual sales made to a country establish some level of demand.
• COMPETITOR ACTIONS: Following competitors into markets avoids costs of market research. 
• DOMESTIC TRADE SHOWS: International participants provide opinions on market potential.

PROACTIVE METHOD: Selecting markets based on quantitative assessment.

• OBJECTIVE: Uses indicators that address the size and growth of the market.
• UNBIASED: Relies on a single source for each indicator.
• QUANTITATIVE: Incorporates trade statistics (outbound and inbound).
• HOLISTIC: Investigates tariff and non-tariff barriers.
• GRANULAR: Validates initial market selection through in-country research.

Our experience working with hundreds of companies entering India reveals that companies using a PROACTIVE method for market entry are most likely to succeed.  The advantages of PROACTIVE market selection outweigh the small additional cost of doing proper market research.

As proponents of the PROACTIVE market selection method, we answer the key questions below to ensure that companies selling into India optimize their opportunities for successful sales. 

KEY QUESTIONS WE ANSWER IN OUR PROACTIVE MARKET ASSESSMENTS

Who uses the product?

How is the product used?

How is the product being sold?

What triggers the purchase?

Is the market growing?

Who are competitors in the market?

Selling into international markets requires careful planning, market research, understanding of trade regulations, and adaptation to cultural differences. SRK and Associates offers comprehensive market entry assistance to companies wishing to enter the world’s most populous market, India.  To date, we have assisted over 2500 U.S. companies with market entry services. For further information, please contact Supriya Kanetkar: srk@srkibconsultants.in.