When importing and exporting products from any area of the world, it is important to have a good and in-depth understanding of which items will be the most profitable for your business. This is especially the case today as the boundaries of selling have been essentially knocked down and a new global marketplace has been opened up.
No longer are there the physical restrictions of yesterday, because today, organizations can sell their products around the world due to shrinking virtual distances. The key, then, is to get a good handle on which products will be the most sought after by a hungry target market.
Identifying Key Markets for Exportation
Just like with any start up business, those who work in the export arena must figure out how to reach their potential target customers. This entails identifying the right market, as well as understanding the best opportunities for exportation.
Knowing the answers to questions such as, “How competitive is the market?” and “Where are the consumers that are interested in our products?” are only half the battle though. Other key factors include product uniqueness, ease of shipment, and the ability to locate and work with resellers. In addition, it is also important to determine whether you will focus on selling to buyers in the wholesale or the retail market.
India as a Product Exporter
When considering India as a product exporter, there are many good reasons to do so. India is the seventh largest country in the world. It is also the second most populated country in the area of South Asia. Based on statistics from the International Monetary Fund’s World Economic Outlook Database, India’s total GDP (Gross Domestic Product) in 2015 was approximately $8.027 trillion.
During 2015, the exports from India were approximately $264 billion – or roughly 3.3% of its total economic output. Overall, the exports from India were distributed in 2015 as follows:
- 7% to Asian countries
- 7% to European importers
- 1% to North American customers
- 7% to Africa
There are a variety of different products that are exported from India every year. When companies import goods from India, they may consider some of the most popular products. These include the following:
- Leather products
- Petroleum (such as crude)
- Gems and jewellery
- Textile goods
- Fine chemicals
- Transport equipment
- Linoleum products
- Electronic goods
The country manufactures numerous products in many different categories. Therefore, countries that import from India may obtain a wide variety of different items such as diamonds, organic chemicals, medication, and cotton clothing. Exporters that deal in these products can earn a substantial amount of profit, provided that they also work with aggressive resellers on the back end of the sales funnel.
Of the products on this list, pharmaceuticals were the fastest growing among them all in 2015 – up more than 50% for the 5-year period, beginning in 2011. Conversely, the key declining category on the list that year was oil, which was down by more than 45% – particularly the refined petroleum products. This is according to information from the International Monetary Fund.
Where to Find Indian Exporters
When considering the different products that are exported by Indian exporters, it helps to do an online search for such companies. By searching via such keywords as import export India, you will likely come up with a broad list of companies and products.
In order to narrow down your search even more, you should include more specific products or items, as well as other search terms that are related to India’s import and export industry. This will help you to find more specific company listings for the products that you are looking for.
Challenges of Doing Business in India
While there are many advantages to exporting products from India, there are some challenges to be aware of prior to moving forward in this area. Knowing this can help you to be better prepared for what is ahead. One of the primary issues with doing business in India overall is the fact that it is an extremely price competitive market. In this particular area, government contracts are often times awarded to the lowest bidder that meets the technical specifications. In India, consumers will generally prefer a low price to durability, or even over quality in general.
It can also be difficult to schedule meeting times for business related activities. This is because in India, there are seven major religions, as well as many minor ones. Because of this, there are numerous holidays – which will often change, depending on the year.
There can be additional challenges in India’s business environment, too. These can include the following:
- Barriers to trade in certain sectors that are the result of regulatory constraints, local sourcing requirements, and / or import tariffs
- Protection of Intellectual Property
- Bribery and / or corruption
- Weather extremes (such as wet weather in the monsoon season and extreme heat in the summer)
- Bureaucratic delays
- Difficulty of land acquisition
- Access to proper skills via the local workforce
- Poor infrastructure
Having knowledge of these challenges up front can help you to be better prepared – and thus ready to move forward with a solution.
Working with India in Your Import Export Business
India’s economy is estimated to be the tenth largest in the world, as calculated by GDP (Gross Domestic Product), and the third largest as determined by purchasing power parity. The country is also the 19th largest exporter and the 10th largest importer worldwide.
With this in mind, it may be a profitable business decision to consider India as an exporter in your import export business. Given that the country produces a wide variety of products, the selection is also vast enough to suit most any potential target market.
Likewise, the market in India – given that its population is in excess of one billion – can offer a lucrative opportunity for exporters in Australia and other nations, too. This includes product areas such as equipment, transportation, healthcare, defence, energy, and infrastructure.
When considering exporting products from India, it can be wise to appoint an agent and / or distributor (or more than one) based on their local knowledge. Some items to factor into your decision should ideally include the following:
- Management of distribution and sales
Prior to appointing an agent and / or distributor, it will be important to take a close look at his or her local reputation, as well as their financial resources, their regional coverage, and their ability to market. Provided that all checks out well, it can be a wise move to proceed.
Just as with any import export business consideration, though, when you are determining the products that you will work with, it is essential to look at which ones have demand and profit potential, and which ones do not. This will entail doing your research prior to “diving in” to a deal. Going with the right products at the right time, however, can turn out to be quite lucrative for you and your import export business.