If you follow the gold rush to new opportunities and untapped markets, China leads the pack. In second place and closing is India. With a population of over one billion people, India possesses a very large and attractive market. Much like China, distance, cultural differences and other factors have limited success in developing the market.

India is famed for its outsourcing capability. Call centers for American firms have put India on the map. The outsourcing to India trend is evolving into outsourcing for a variety of technical business functions outside of the call center industry.

Successful selling into the Indian market has not been nearly as widespread. How can you obtain a foothold in India? This article is dedicated to help you understand how and who can help you do it.

Keys for selling in India

The Indian economy is currently at an all-time high. Like many other countries, India was hit especially hard during the dot-com bust. Fortunately during the 9/11 period, the Indian domestic IT market showed stability making it one of the important markets during crisis.

The development of the Indian software and services industry is one of the government of India's top priorities. State level governments are focused on the industry's growth potential. Various government initiatives have significantly contributed to the loosening of regulations and other obstacles. Initiatives such as implementing zero duty regimes and direct taxation relief continue to spur sector growth. India has one of the toughest Copyright Acts in the world, which allows foreign firms to operate with a adequate IPR and trademark protection.

Despite India's large potential in the domestic market, the industry has attracted little international attention and foreign investment. Although Indian IT companies have gained global popularity for their software and service skills, the product domain still remains underdeveloped. There are companies Like Cleon Technologies, which help you in setting up and starting your company on Build Operate Transfer (BOT) basis which help you take advantage of cheap labor. Currently there are only ten major Indian enterprise product companies.

Like any foreign market, understanding how products move from the buyer to the end-user will increase your chances for success in the market. Cleon gives access to a broad, well-managed and efficient distribution network like is a source of significant competitive advantage.

India's state government backed initiatives have helped the IT development centers spread across various regions of the country. U.S. companies should enter the Indian market by appointing a local representative or a distributor. There are 29 states and six union territories in India. If a product has a wide market appeal, appointing a regional representative or distributor would be beneficial for the foreign firm.

The ideal distributor should have the capacity to offer customers the required assortment of products and services as well as a willingness to extend credit. Additionally, the distributor should be able to provide storage facilities, showrooms, shops, service workshops, and sales staff appropriate with the expected volume of business.

 U.S. firms should avoid the temptation to pursue a relationship with a representative or distributor merely because the individual seems to be the most persistent or enthusiastic of the candidates. Many representatives may appear to have excellent industry and customer contacts, but they may have little motivation to develop new markets or new customers. Cleon Technologies has the motivation

On the other hand, representatives with many principle and product obligations may not be able to dedicate sufficient management and resources to support additional relationships. U.S. companies need to be sure that their product(s) will be represented strongly. Make sure the prospective distributor is committed to actively promoting your product.

There are additional factors to take into account when determining potential representatives and distributors. It is vital to determine who the targeted customers are and where in India they will buy. Sometimes a small distributor may be ideal where a flexible strategy is necessary. Representatives with smaller operations may be more adaptable and committed to your product. U.S. firms should avoid conflicts of interest where potential representatives handle similar products. It is not uncommon to appoint multiple representatives for different products, locations, or distinct markets.

It is also very important for U.S. firms to check the potential representatives reputation. The US Commercial Service in India, local industry sources, associations, existing clients, bankers, other foreign companies and competitors can all be helpful in this regard.