Sales in India
An article on Live Mint, a financial news website by the Hindustan Times, covers Indian bargaining practices, warning foreigners to be prepared.
“Indians have a long tradition as buyers and sellers with foreign countries,” which “has led Indians engaged in business to have a ‘trader’ mentality, which has both positive and negative connotations. Positively, this makes them highly entrepreneurial, always looking for opportunities to do business. Perhaps negatively, especially from the supplier’s perspective, this makes them inordinately price sensitive in their purchasing. In other words, Indians are tough negotiators and love bargaining. Any foreigner desiring to sell to an Indian firm should be prepared for this.”
The procurement process is lengthy when compared to countries in Europe and North America. Hierarchy and power distance influence this. A “fair price” is sought by Indian companies, rather than the lowest price, since information on price is well known throughout the realms of business in India. Many aspects of negotiation may frustrate non-Indians, as indirect communication is the norm. India is a high context culture where tone of voice, body language, eye contact and facial expression can be more important than the spoken word.
It is truly important to know this information before doing business in India!
