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Notes of doing business with Indian

By Admin on 2016-09-27 15:08:40 posted in Trade Learning

According to customs statistics, our main products imported from India, our main are: electronic products including televisions, computers and stereos and other electronic components, machinery and equipment and other products like coke and coal , raw silk and textiles , pharmaceuticals, steel, chemical and dye intermediates , refractories, light industrial products , and beans etc. We mainly imports from India iron ore, chrome ore , refined oil , steel, vegetable oil , aluminum , machinery and electronic products , diamonds and gemstones etc.

We hope that people especially those who are doing the foreign trade businesses with the Indian company should note the following:

1. Plus the appropriate point when quoting the price to them so that we can have the price space for them to bargain or we can quote them equal difference price according to different quantity so that they can feel they are having benefit from it. For the one who only care about the price but not the quality and the product details, we can make a conventional reply model. And for the one who blows how strong he is, and how large quantity his order is, we need to properly investigate the situation of their company. And about the order quantity, no matter how much he says, you can only confirm it after he final confirm the order.

2. Adhere to the L/C at sight as the main payment terms and carefully review and fulfill the letter of credit to match all documents . Do not listen to the rhetoric and various reasons of the buyer. Do not accept the D/P and D/A payment terms because the local market is constantly changing , and the import policy often adjusted, some importers , especially some small commercial companies may refuse to perform the contract at any time with a variety of excuses.

3. Pay more attention to business that is cooperated with the agent through Hong Kong and Singapore especially the Indian company open in these two places. Some of them are issuing the certificate in Hong Kong and transfer the vessel to India when the goods reach HongKong; Some are issuing in Hong Kong, but the delivery destination is India; Some contact with the agent and the final buyer issue the certificate. We must pay more attention to all these circumstances, and investigate the background of the agent and clarify the responsibilities according to the provisions legally.

4 Make a clear market survey and overall situation, and make a serious quotation. Do not dumping with a low price in order to open the market and grab customers. In recent years , the Indian government has investigated the foreign goods exported to India in the name of anti-dumping. Many Chinese export companies exit the India market because of their inactive responding when investigated by the India government.

5.Sales return is allowed if the goods arrive at their destination and the importer reject to pay or there is some quality problems in the goods. The exporter can manage the return formalities with the cargo rejection certificate, relevant delivery certificate after the exporters require the port storage charges, agency fees and reasonable costs. If the importer refuse to give the exporter certifying documents, the exporters can propose the decline requirement to the relevant India custom and manage the relevant the formalities by the documents of the importer's refuse to pay or get the goods certificate or by the documents that proof the importers do not pay the bill issuing by the bank or the shipping agent. If the goods are proposed by the customs and refused because of the quality problem, the exporter can get 80-90% import tariff back.

6.Strengthen the ties with the Embassy of Chinese Economic and Commercial Counselor and the Consulate General in Mumbai Economic and Commercial Office in India. After the trade disputes, export enterprises should be truthfully informed the whole process of trade to the China-related institutions abroad, so that they can analyze the situation and make recommendations to help the domestic enterprises to solve the problem as soon as possible.

7. Dun & Bradstreet Information : According to the International Risk & Payment Review 1998 in the July data, published by the British agency Dun & Bradstreet Business, India's country risk indicator is DB3c. DB3 represents a "general credit rating ," that means the country " has enough ability to pay loan debt." And this is in the same level with South Korea and Philippines but lightly lower than in China (DB3a) and Malaysia (DB3b), but better than Thailand (DB3d) among Asian countries.

In short, we should be more carefully and better know the partner’s credit status when doing the export business with the Indian trade company.

Summary of Indian Market :

India is the large trading agent country. The shortcut to open the Indian market, we should :

1.participate in the annual meeting of Indian market associations and find the annual meeting of the field you are running in;

2 participate in the relevant exhibitions;

The hot purchasing products in India till 2013 are: construction, machinery( related to the house and motorcycle )

Help approach in India :

(1) Hindi-chini bhai = bhai ( China and India are brothers )

(2) In case of emergency , stoop and touch their feet to show the greatest of respect to them

(3) Bear in mind that most of the Indians are very kind. Everything should has PLAN A and PLAN B ( say one thing and do another )

(4) Among physical strength, stamina and spirit, Indian think highly of spirit. So the way you speak should make them feel comfortable.

India's principles of purchase: the goods should looks good rather than the quality. When we want to offer the price we should quote a little bit higher in accordance with the degree of monetary stability in India. For example, if the original offer is 1 yuan, we should quote 1.3 yuan while the appreciation taxes including: raw materials, semi- finished products and finished products in turn is 0, 50 % and 100%. And we should distinguish their position whether they are wholesalers or distributors, because wholesalers generally requires fewer purchases style with high prices while distributors are prefer more styles and cheap price.

5. To do business with Indians, we should:

(1) Build the relationships first by asking: are you the boss, if yes, the rate of succeeding the business will not be high.

(1) Let the buyer know that the price has reached the bottom line of the suppliers and then the buyer will handle it equally.

(3) Prepare sufficient time to discuss with them.

6. Use their mother language while communicate with them. It will be more close to them.

The way of reception the Indian customers:

1.Foods. We should ask whether they are vegetarian or not in advance. More than 20 % of the population is vegetarian with Chicken breast and fish. ( senior caste Brahmin prefer vegetarian in order to maintain their cleanliness )

2. Religion. If the customer is an Islam, pay attention to whether there is a mosque near your factory ;

If Hinduism, you can tell him GANESHA WISH YOU LUCK, Ganesha is India's Wealth ;

If Zoroastrianism, it is the rich nation in India.

If Christianity, you can have nothing to worry about.











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