software, petroleum products, chemicals, pharmaceuticals, agriculture, textiles, steel, transportation equipment, machinery, leather, cement, mining, constructionExport goodsGarments, knitwear, agricultural products, frozen food (fish and seafood), jute and jute goods, leather.software, petrochemicals, agriculture, leather, jewelry, engineering goods, pharmaceuticals, textiles, chemicals, transportation, ores and other commoditiesImportant PortChittagongMumbaiOrganizationmemberWTOWTOEase-of-doing-business rank172130Market Entry Strategies (India)At this stage India is negotiating a free trade agreement with Bangladesh. It is hoped that this may lead to reduced tariffs with regards to Sugarcane and processed food. The free trade Page 11
agreement is not anticipated to impact Beverage imports due to strict regulation around preserved Beverage products.Survey markets:It is recommended that potential products are surveyed in order to find the bestpotential market and to understand the import requirements. This should also include competitor analysis. There are market research firms in India that are able to assist or conduct the researchBusiness partner:Companies should aim to find a reliable agent or importer / distributor to partner with. It is very important to ensure time and money are allocated towards identifying the right local partners and companies, which can help establish a brand in the Indian market. As India only lifted the ban on most food and beverage imports in 2000, many food and beverage importers are not yet well established. Companies should research potential business partners carefully before entering into business agreements. Many large importers who are able to manage brands and distribute nationally are currently interested in expanding product lines. These importers will usually require exclusive rights to a particular product or brand. The following factors are important to consider when selecting a business partnerVisits and trade shows:India has a complex food and beverage market so it is recommended that companies interested in exporting to India visit the country itself and visit or participate in major trade shows.Common strategies in marketing / promotion:It is essential to understand the kind of product and the level of knowledge the consumer has of the product. The market is being flooded with international products and the only way to create awareness and educate the consumers is by large promotions, offers, and sampling activities, for which a reasonably large budget is necessary. Retail chains insist on manufacturers’ support for promotions, sampling, and education.Advice on packaging:Packaging sizes are very important, usually for Indian consumers, the bigger the better. That being said, in most cases while packaging is large, the contents are half the size. This gives the impression of getting better value for money, even though it may not necessarily be the case. Indian importers and distributors generally have the best knowledge and should be consulted when making packaging decisions.