Eastern India Is Secondary Region in Indian ICT Market

The development of Eastern India has been seriously hampered by its natural limitations. Its poor transportation has affected the smooth flow of products and information, handicapping industrial development and limiting the size of market hinterlands. These limitations mean that poverty is widespread among the Eastern Indian states. Buying power is generally low among the government, businesses and general consumers, so its electronics market is the smallest in India (accounting for just 10% of the country's total market).

As far as businesses are concerned, Eastern India is not an ideal choice for entering the Indian market. Only after investing in the prime markets in Central India, Southern India and Northern India should they consider investing some of the leftover resources in Eastern India. The target could be public tenders and enterprise demand to avoid excessively low returns on investment. The distribution network in Eastern India is relatively closed and dominated by existing players. Shifts among local relations or when the market size passes a critical point could be reasons for entering the Eastern Indian market.

Concentrating Marketing Resources on Kolkata and More Economically Developed States

The ICT market in Eastern India - e.g. mobile phones, televisions, personal computers etc. - tends to be focused on new purchases. As average incomes are still relatively low, the main demand is for low prices.

Apart from reducing costs as much as possible in product design, the relatively concentrated nature of the Eastern Indian electronics market means that businesses can concentrate their marketing resources in West Bengal where Kolkata is located, Assam with its tea-driven economy and Orissa where there are more industrial parks. By advertising in local newspapers, setting up directly-owned outlets, holding product displays in community business districts or even taking part in state government-sponsored trade exhibitions, businesses can establish brand awareness and win ICT product orders from local governments and enterprises.