Indian Market Entry

Setting Up in India: Business & Distribution Strategies

Sep 3, 2024

🏗️ Setting Up in India: Business & Distribution Strategies

How Swiss Businesses Can Successfully Enter the Indian Market

🚀 Why This Matters

India is one of the fastest-growing consumer markets in the world, with a rising demand for high-quality Swiss products—from wines and luxury watches to pharmaceuticals and industrial machinery. However, successfully entering the Indian market requires more than just exporting—you need a solid strategy for distribution, partnerships, and supply chain management.

Without the right local partners, legal compliance, and distribution channels, Swiss companies risk:
High import costs eating into margins
Complicated regulatory roadblocks
Slow product adoption due to cultural & pricing differences

So how do you get it right? Let’s break it down step by step.

📍 Step 1: Finding the Right Indian Distributors & Partners

🔍 Why Do You Need a Local Partner?

India's complex import system, retail structure, and pricing mechanisms make it essential to work with experienced Indian distributors. Here’s why:
Regulatory Compliance: A local partner handles licensing & approvals.
Faster Market Entry: They understand the ecosystem, reducing go-to-market time.
Local Trust & Brand Positioning: Indian buyers prefer dealing with known distributors.

📌 Real-Life Example #1: How Lindt Cracked the Indian Market

  • Challenge: Lindt initially struggled in India because premium chocolates were seen as gifts, not everyday snacks.
  • Solution: They partnered with key importers and major retail chains (Nature’s Basket, Le Marche).
  • Outcome: Today, Lindt dominates India's luxury chocolate market without opening a local office.

💡 Where to Find Reliable Indian Distributors?

1️⃣ Trade Associations & Chambers of Commerce

  • Swiss-Indian Chamber of Commerce (SICC)
  • Swiss Business Hub India (SBH India)
  • Federation of Indian Chambers of Commerce & Industry (FICCI)

2️⃣ Industry-Specific Directories & Trade Portals

  • Indiamart.com (Largest B2B portal in India)
  • TradeIndia.com (Verified Indian distributors)
  • Connect2India.com (Swiss-India trade matchmaking)

3️⃣ Swiss Business Delegations & Trade Fairs

  • ProWine Mumbai (For wine & spirits)
  • India International Jewellery Show (IIJS) (For luxury & watches)
  • India Pharma Expo (For Swiss pharma & medical tech)

Pro Tip: Always vet distributors carefully—request business licenses, GST details, and past client references before signing any agreement.

📍 Step 2: Legal & Regulatory Considerations for Swiss Businesses

India has strict regulations for foreign businesses. Here’s what you need to navigate:

📌 What Type of Market Entry is Best?

Business ModelBest ForRegulatory BurdenAppoint a DistributorFast market entry, minimal legal setup✅ EasiestSet Up a Wholly Owned SubsidiaryFull control, direct sales in India⚠️ High complianceJoint Venture (JV) with Indian PartnerShared investment, regulatory support⚠️ ModerateFranchise ModelRetail & luxury brands (Watches, Wine)✅ Medium

📌 Key Licensing & Tax Considerations

🔹 GST Registration: Required for any company selling goods in India.
🔹 Import Licenses: Certain Swiss products (Pharma, Alcohol, High-Tech) need sector-specific approvals.
🔹 BIS Certification: Bureau of Indian Standards approval may be needed for machinery, medical devices, and dairy.
🔹 FSSAI for Food & Beverages: Swiss food & beverage exporters must comply with India’s Food Safety Authority (FSSAI).

Pro Tip: Many Swiss companies use an Indian importer as the official license holder to avoid excessive paperwork.

📍 Step 3: Setting Up Supply Chain & Warehousing

🚚 How to Optimize Logistics for Swiss Exports to India

Indian import duties, inland logistics, and warehousing can add 30–50% to final product costs. The right supply chain strategy can reduce these costs significantly.

📌 Real-Life Example #2: How Tissot Watches Lowered Costs in India

  • Challenge: Importing luxury watches via Swiss direct distribution made them expensive.
  • Solution: They set up a duty-free bonded warehouse near Mumbai, cutting import costs.
  • Outcome: Tissot watches became more price-competitive vs. European luxury brands.

Best Logistics & Warehousing Options for Swiss Companies

MethodBest ForCost EfficiencyShip to an Indian Importer’s WarehouseMost Swiss exporters✅ CheapestSet Up a Bonded Warehouse in IndiaLuxury Goods, Machinery⚠️ ModeratePartner with 3PL (Third-Party Logistics) ProviderFMCG, Pharma, Wines✅ Best for scaling

🔹 Recommended Indian Warehousing Hubs
Mumbai & Nhava Sheva Port (Best for luxury, pharma, wine)
Delhi NCR (Gurgaon, Noida) (Great for Swiss industrial goods & machinery)
Bangalore (Tech-driven imports & precision instruments)

Pro Tip: Use 3PL services like Blue Dart, DHL India, or Delhivery to avoid setting up expensive warehousing infrastructure.

📍 Step 4: Retail & Online Expansion Strategies

📌 Should Swiss Companies Sell Online or In-Store?

India’s e-commerce boom has made it easier for foreign brands to sell directly to Indian consumers.

📌 Real-Life Example #3: How Emmi Dairy Used Amazon India to Scale

  • Challenge: Swiss cheese was hard to distribute via traditional supermarkets in India.
  • Solution: Emmi launched a direct-to-consumer model on Amazon India, reducing the need for in-store shelf space.
  • Outcome: Higher margins & faster consumer adoption.

Best Online & Retail Strategies

ModelBest ForPlatformsE-commerce Direct SellingLuxury, FMCG, WineAmazon India, Flipkart, Nykaa LuxeRetail PartnershipsPharma, FMCGReliance Retail, Nature’s BasketExclusive Brand StoresWatches, Luxury GoodsMall of India, Palladium, Select Citywalk

Pro Tip: If you're selling high-end Swiss products, consider partnering with India’s top luxury retailers like Tata Cliq Luxe, Le Mill, or Pernod Ricard India.

🚀 Conclusion: Your Swiss Business Playbook for India

India’s booming consumer market offers huge opportunities for Swiss exporters—but success depends on the right setup.

Step 1: Partner with the right Indian distributor to navigate compliance & sales.
Step 2: Choose the best market entry strategy (Distributor, JV, or Direct Subsidiary).
Step 3: Optimize supply chains & warehousing to reduce costs.
Step 4: Build a strong retail/e-commerce strategy for direct market access.

🚀 💡 Want to learn more?
Use our TEPA Market Insights tool to analyze Swiss-India trade trends and discover custom strategies for your product category.

👉 [Explore TEPA Market Insights Now] (CTA Button)

📌 What’s Next?

Want a deep dive into Swiss Wine Distribution in India? 🍷📈
Let me know, and I’ll draft a dedicated blog on how Swiss wine brands can dominate the Indian market! 🚀

Start Your Swiss-Indian Trade Journey.

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