Distributor management India
After identifying and selecting an Indian medical device distributor (or distributors), managing the local partner is the next challenge.
Make sure you continue to invest and stay engaged in the relationship with the Indian partner.
Create a win-win working relationship where there is a real incentive for the distributor to deliver on targets set (e.g. launching new products, increasing distribution coverage, implementing marketing plans).
Some learnings from managing distributors in India:
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Set clear goals, agreed by both parties. At the same time, don't feel bad about replacing a distributor with subpar performance. Outline clear goals on an annual basis; if not reached without good reason, don’t hesitate to replace the distributor when there are better options at hand
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Clearly divide the territories between the India medical equipment distributors. Don't let them sell in each other’s territory. If you do, it could be the downfall of your business. Cross-border sales must be avoided
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Establish proper reporting systems. And have the India medical distributor share relevant market data based on which decisions can be made. India has a relationship-driven business culture and the more frequent you have dialog (not just email) with your counterparts, the better your relationship can be. Partners seem to perform better when they know they will soon have to report on progress. Regular calls also allow you to find out what marketing promotions are being done and keep you updated on progress made. Your dedication to the market will be rewarded
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Have regular contact to get informed on market developments and educate and train on products (functionality and features, competitive offering) and branding. This will add to a transparent relationship and improve mutual understanding
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India is large but information travels fast. If you sell to one distributor with a cheaper price everyone in the industry will know about it and will demand the same price. So, a list price and performance discounts should be in place
Understand India business etiquette and make a positive impression
As we mentioned before, personal relationships are very important in India so expect to spend some time getting to know distributors in India. Good to meet them in person and understand the Indian business culture:
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India business is very hierarchical. When entering a business meeting, greet the most senior person first. Handshakes are fine
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Receive a business card with your right hand, study it, and put it away respectfully
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Small talk is expected, and you may be asked questions about your family, sports, etc. It is ok for you to reciprocate
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Formality rules. Use their professional title. If meeting someone senior to you, use Mr. or Ms.
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Schedule meetings well in advance and be prepared for times to shift. Meetings are likely to start late and finish late. Plan for it and be patient
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Indians are less direct than some Americans or Europeans. You might get answers like “We will see” or “I will try.” While you may desire clarity, don’t force your Indian colleague to clarify because it can damage the relationship. Be more diplomatic and indirect in your approach
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Indians value trust and relationships are critical. Decisions are typically made at the highest levels. Understand this chain of command
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India businesspeople often operate on a “just in time” basis and last-minute preparation/delivery is common. Be aware of this cultural difference
