However, there is the risk that your Indian distributor can use their information advantage to your detriment. You need to make sure they do not set prices in their favour by estimating costs too high – e.g. customs duties, taxes, final prices for labelling; transport and storage.
On top of this dealers are usually trading houses, working for various companies at the same time and keeping multiple products in their portfolio – with their focus on margins and volumes.
Explaining the benefits of imported – and often high-quality – products are not always the top priority for Indian distribution partners, so their sales people may not have the product know-how or be fully able to maximize your market potential. Especially in a price sensitive market like India, however, this is one of the key criteria that determine market success or market failure.