India’s product sourcing has become a major success for the country. After all, it is the seventh-largest country in the world by area, with most of its 1.4 billion citizens having businesses in different sectors.
India has experienced tremendous economic growth in recent years, with an average growth rate of over 7% per year in GDP for over a decade. The country has become one of the leading hubs for global businesses due to its young population, low labor costs, availability of skilled talent, and expanding consumer base.
These factors make India a major competitor of China in satisfying a growing global e-commerce industry.
2023 Product Sourcing Guide - India
When it comes to product sourcing, India's textile industry is one of the oldest and most successful. The sector is almost 7% of India’s manufacturing output, 2% of GDP, and 12% of exports. It is the 5th largest in the global apparel market and the global textile and apparel exports.
Unsurprisingly, India has been a go-to destination for brands, designers, and buyers worldwide. After all, it possesses the entire manufacturing value chain, from fiber to apparel, and provides the distinct advantage of backward integration.
Recent developments like easing international investment processes, signing exclusive international trade agreements, approval of integrated textile parks and production-linked incentive schemes have made the Indian market competitive on cost and quality.
Why source products from India?
India is one of the best countries to source products from due to its low cost and abundant resources. With Amazon Seller and other trade shows, it's easy to find quality Indian products at an affordable price.
By sourcing products from India, one can access some amazing items made with quality materials and craftsmanship. Additionally, importing products from India can help businesses stand out in a competitive market, as their products tend to be unique and eye-catching— just like in the image above.
Although most private-label e-commerce vendors source their products from China, many sellers consider India as another viable product-sourcing option. Doing this may diversify their business operations and reduce the risk they are exposed to.
The decision made by the United States to impose import duties on Chinese items has also accelerated the option to explore alternatives like India.
Benefits of sourcing in India
There’s more India has to offer when considering selling its top-rated products; here are six of what I like when sourcing in India:
1.No Import Tariffs
As a result of the tariffs imposed by the US on products manufactured in China, many importers are looking to source products from alternative markets. India is one of these alternative markets.
The United States and India are not currently engaged in a trade war. Even though India was recently removed from the list of developing countries with preferential access to the United States, this will not affect e-commerce sellers who import products from India.
As explained, most products granted preferential access were industrial and chemical goods, which e-commerce sellers would not be imported.
2. Accepts Small MOQs (Minimum Order Quantities)
As a result of the fact that many items sold in India are handcrafted, vendors are typically willing to fulfill even relatively modest orders. Currently, the minimum order quantities for most Indian products range from 200 to 500 pieces. Still, many vendors are willing to accommodate orders of as few as 20 to 50 units (except for apparel and textiles).
Not to mention, they might also charge a marginally higher price for less substantial orders. This is a huge benefit for sellers on Amazon, particularly if you are just starting out with a limited budget or an experienced seller who wants to test a new product line.
3. IP protection
Intellectual property protection has emerged as one of the most contentious issues in the ongoing trade war between the United States and China. However, if you choose to source your products from India, you won't have to be concerned about this issue.
When choosing Indian products, you have fewer problems with suppliers duplicating your designs and reselling them to other customers.
Compared to typical Chinese suppliers, Indian suppliers have greater regard for the intellectual property of their respective buyers. That does not mean that your intellectual property will never be stolen or compromised, but the likelihood of that occurring in India is significantly lower than in China.
4. English is Understood
Since English is the second official language in India, the vast majority of the people working for your supplier will be able to communicate with you in that language, albeit with varying degrees of fluency. When it comes to communicating with your supplier, this is of great benefit, especially when you are developing or modifying a product to sell under your own private label.
5. Domestic availability of various raw materials
Cotton, silk, jute, marble, metal, wood, bamboo, and many other raw materials are all easily accessible in India. In contrast, other countries like Vietnam rely on China as their primary source for importing such raw materials. Cotton is India's most widely grown crop, and the country is responsible for 26% of the world's total cotton production.
6. Unique Handcrafted Products
India's production of one-of-a-kind and handcrafted goods that cannot be found in other countries is one of the most important reasons to source from the country. India's suppliers emphasize design and frequently create, test, and introduce new products they have developed in-house. The designs of the products that suppliers sell are guarded with extreme secrecy.
Exhibitors at trade shows typically do not permit attendees to take photographs of their wares within their booths. Additionally, there is a diverse selection of traditional handicraft techniques that are exclusive to the country.
For instance, the state of Rajasthan is known for its blue pottery, and the states of Assam, Meghalaya, and Sikkim in the east of the country are known for their cane and bamboo goods.
The ability of handcrafted goods to command higher prices and, as a result, offer more significant potential for financial gain is one of the benefits of selling these goods.
What can be Sourced from India?
India's top export categories are raw materials and industrial products such as oil, machinery, vehicles, chemicals, pharmaceuticals, iron, steel, and machinery.
Besides these commodities, you wouldn’t believe the intricacies of handcrafted products made of various materials such as metal, ceramic, wood, and textiles; apparel and fabrics; fashion accessories; leather products; and eco-friendly products are examples of products that e-commerce sellers can import from India to sell online.
Common items considered by e-commerce sellers from India are the following:
- Fashion Jewellery, Bags, Scarves, Ties & Accessories, Canvas, Jute, Leather Bags
- Handcrafted Garments including Chikankari & Zardozi
- Furniture, Furniture Hardware & Accessories including Cane, Bamboo, Natural Fiber & Eco-Friendly Products
- Lawn, Garden Ornaments & Accessories
- Handmade Paper, Gift Wraps & Ribbons including Soft Toys
- Bathroom Accessories
- Candles, Incense Sticks, Potpourri, and Aromatics
- Carpets, Rugs & Floorings
- Christmas and Festive Decorations
- Decorative and Gifts (including Corporate Gifts)
- Home Furnishings & Made Up
- Housewares, Tablewares, Kitchenwares, and Hotelwares including EPNS
- Lamp & Lighting Accessories
How to do an Effective Product Sourcing From India
1. Develop and Maintain Rapport
In India, suppliers frequently take their clients out to eat or arrange trips to tourist attractions such as the Taj Mahal.
Compared to China, the Indian way of life is a little slower and more relaxed. Because family and professional lives are not strictly separated, you may be asked about your family and asked similar questions in return.
Take the time to build a relationship with your supplier when sourcing products from India.
Suppliers will begin to trust you after you've placed a few orders (and made your payments on time). You will be more favored once you have established a relationship. For example, you may get better prices, better payment terms with lower or no advance payments, longer credit terms, or avoid paying for samples.
2. Look and Talk to the Head Honcho
In Indian business culture, decisions are usually made at the highest level, and hierarchy is important. Decisions are typically made by the company's owner or, in the case of a larger company, by top managers if they have been given the authority.
Daily communications sometimes become slower if your contact person needs authorization for various actions.
When meeting someone in person in India, introductions are made based on rank. First, speak with the most senior person. Seniority is determined by a person's position within the company as well as their age.
3. Be Clear With What You Want, Ask Specific Questions
When asking questions, be specific and avoid requiring a yes or no answer. Indians, much like Chinese people, dislike being forced to respond "no" when asked a question. Instead, they respond with phrases like "maybe," "we'll see," or even simply "yes."
They do this because they want to ensure that all of their options are available and base their choices on the specific circumstances or situations that arise.
For instance, when negotiating price, rather than directly asking if they can cut the cost by a certain amount, you could say that your product is gaining momentum and that you plan to increase the number of orders you place by saying that you will be placing more of them.
Ask yourself: Would they be willing to provide you with more competitive prices if you increased the total number of units you ordered by a certain amount?
After they have informed you of how much of a price reduction they can offer, you can continue to negotiate depending on how profitable your business is.
How to source a product from India?
Sourcing a product from India is a simple and straightforward process.
First, you need to identify the type of product you are looking for and research to determine which Indian suppliers offer that product.
Once you have identified potential suppliers, contact them directly and inquire about their pricing, terms of sale, payment policies, shipping methods, and other relevant details.
You should also inquire about any applicable import duties or taxes that may be applicable in your country.
Additionally, it is important to ensure the supplier is reliable by researching their customer reviews online or asking for references from past customers.
Finally, once you are satisfied with the supplier’s offers, negotiate your desired prices and terms before purchasing.
With the right research and preparation, sourcing a product from India can be an easy and cost-effective solution.
How to find suppliers in India?
Before outsourcing a product in India, you must ensure that you have a good and reliable supplier. Here are a few ways to find suppliers:
1. Online supplier directories
Popular sourcing websites for Indian suppliers are Global Sources, Alibaba, and IndiaMART.
Global Sources and Alibaba are more export-oriented, while IndiaMART has many suppliers that also cater to the domestic market.
2. Domestic trade shows
Since 1994, the India Handicrafts and Gifts Fair, also known as the Delhi Fair, has been running as a trade show twice a year—-one in the fall and one in the spring. It is widely considered one of Asia's largest gift and handicraft fairs.
The Export Promotion Council for Handicrafts is in charge of organizing the Delhi Fair, which showcases products in various categories. These categories include home decor and furnishings, gifts, apparel, seasonal items, accessories, etc.
TradeFairDates.com features a broad spectrum of trade shows and fairs across the world. You can search by region on a calendar that is kept up to date and lists events that can be attended in person or viewed online.
Although it would appear that the majority of trade fairs are held in Mumbai, there is a significant number held in other parts of the country, including places such as Bangalore, Kolkata, and New Delhi, amongst others.
3. Overseas trade shows
Indian suppliers can also be found at overseas shows in Asia, Europe, and the US.
Some of these shows are:
- SAITEX in Africa
- MAISON&OBJET in France
- Heimtextil and Ambiente in Germany
- Global Sources Fashion held in Hong Kong
- Canton Fair in Guangzhou
4. Sourcing agents
The majority of the sourcing agents in India keep their own databases of vetted suppliers, and they are typically able to assist with finding manufacturers for any product category.
Depending on where they are located, particular agents may develop expertise in a particular product category.
So, whether you are a first-time private label e-commerce seller or a seasoned pro, India offers many unique and innovative products. Or if you are tired of getting products from China with all its issues, perhaps it's time to consider India.
Maybe it’s time to stand out from the thousands of other Amazon third-party sellers who buy from China.
If you want to get the most out of sourcing from different countries, my company, Imprint Genius, can help you navigate and get the best products with the best deals. Click here for more details.
FAQs:
Why sourcing from India?
One of the advantages of sourcing from India is its affordability. Unsurprisingly, the country has a skilled workers who can produce goods at lower prices than many in many other manufacturing countries.
What types of products or services are best suited for sourcing from India?
The types of products or services are best suited for sourcing from India are petroleum products, precious stones, vehicles, machinery, iron and steel, chemicals, pharmaceutical products, cereals, and apparel. For business owners interested in manufacturing products in these categories, India could well be worth considering as a manufacturing hub.
How to get suppliers for ecommerce business India?
You can get suppliers for ecommerce business in India by:
- Finding ecommerce suppliers online.
- Sourcing backup product suppliers.
- Looking for local shops without an ecommerce store.
- Looking into international ecommerce store suppliers.
