India has emerged as a premier destination for product sourcing, and companies worldwide are choosing to import from India. Fueled by remarkable transformation and growth, with the advantage of skilled workers, improving infrastructure, cultural compatibility, and a favorable regulatory environment, the country has helped make India sourcing simpler and cheaper for companies worldwide. Therefore, setting up a buying office in India can be a wise decision for companies looking to import high-quality products at competitive prices.
The slight erosion in China’s competitive position and questions about the country’s future have led businesses to rethink their sourcing strategy. In fact, the rate of export growth from China to the Western world has slowed for the first time in 15 years. The re-evaluation of the Chinese currency over the last 4-5 years vis-à-vis the US currency and the imposition of anti-dumping taxes on several products for which Europe and the US are trying to protect themselves against Chinese imports have not helped much either. For companies looking to diversify their low-cost country sources of supply, India sourcing seems to be an obvious choice.
Advantage of India Sourcing
India presents to the world the profile of an emerging giant. As the seventh largest country in the area and the second most populous country in the world, the country’s sheer size (with low labor costs), economic weight, and stable political system explain the level of attention from potential investors and corporate buyers. Apart from IT services, India’s vast manufacturing base includes chemical and pharmaceutical products; textile, leather, and clothing; machine tools; and electrical equipment. With the second-largest railway network in the world and a vast coastline with established seaports, the country is turning into a top destination for low-cost, high-value goods, and services. All you require is the experience and insight to ensure that your company can establish and expand India sourcing operations strategically.
Top Reasons Why Companies Are Choosing India:
- Continuous cost reduction opportunities
- Alternative sources for rising costs in other countries
- Use sourcing in India as a platform to launch a business in the country.
By having diverse and extensive experience in the industry, sourcing companies have established themselves as experts in the field of procurement. They possess the ability to locate top-notch vendors for product sourcing services, bargain for rates that align with your budget, and monitor crucial processes such as in-process quality to guarantee successful product procurement. Their well-established network has reinforced their operations in numerous Asian countries, including India, which enables them to provide an extensive range of products within a limited timeframe through their buying office in India.
Are Agencies the Option for Your Business?
If you would prefer a company to perform functions such as verified supplier identification, process quality checks, etc., a procurement company or agency is the right choice. You will notice a significant reduction in business risk as well because the agency keeps regular control over the products, and you will hardly ever deal with quality-related complaints. If you use these services for export purposes, you will benefit from significant time and cost savings as well as avoid travel costs for your business. Achieving procurement excellence in India requires the deployment of western-style procurement practices that are adapted to the local context and culture. What your business needs is a strong and integrated team of experienced professionals in the West and in India, so your import needs from India are met effortlessly.
What Do These Companies Do?
- Source potential vendors and negotiate pricing.
- Monitor sampling and facilitate product approval.
- Process export orders and ensure quality from sampling to shipment.
- Communicate and coordinate all sourcing activities.
Innovative, High-Standard Products to Support Your Business
Although the advantages are many, there are a few barriers that hinder companies from sourcing in India. These include delivery lead times, which are perceived as the major barrier for nearly 28% of companies that are not sourcing in India currently. This is a reflection of the poor image that India’s infrastructure still suffers from in the West, raising fears in buyers’ minds about the difficulties that they will face when trying to get products out of India. The belief that India lacks suppliers that have the technical capability and/or competitive cost structure that would allow them to become qualified suppliers to Western companies also keeps them away.
However, their procurement companies have successfully offset these risks and helped companies overcome barriers while sourcing from India. They always keep your compliance requirements in mind and help you reap real value through sourcing Indian services. Over the years, they have helped businesses of all sizes take advantage of product sourcing from India. Every client receives the utmost focus, and they strive to help the customer leverage the benefits of India sourcing. They believe that product knowledge and high-quality standards are key to maintaining customer loyalty, and they ensure that these are maintained with a network of the best suppliers in India.