India – Pricing | export.gov

When formulating key strategies and making decisions about product pricing for the Indian market, it is important to remember that simple conversion of U.S. dollar prices to Indian rupees will not work in most cases.  Also, the assumption that a latent niche market for premium products exists has often resulted in low sales volumes and negligible returns for some foreign companies.

If the product can be imitated easily in terms of quality and service, international pricing will not work in India. To reduce product import duties or other local costs and ensure a stable market share, several U.S. and other foreign companies have set up product assembly in India.

Pricing decisions also have some bearing on product packaging.   Many consumer product suppliers have found it helpful to package smaller portions at reduced prices rather than “economy” sizes.   Although some Indian consumers are aware of quality differences and insist on world-class products, many customers can sacrifice quality concerns for price reductions.

Bargaining for the best price is a routine process for the buyer and seller in India.  For consumer goods, especially for durables, the sellers often give discounts on the listed prices during holiday seasons to attract more customers.  Trade-ins of old products for new items are also increasingly popular among consumers. A pricing strategy must consider all of these factors.

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India – Pricing | export.gov.