Channel Strategies For India's Tier Two And Tier Three Cities

Tech vendors targeting the Indian market currently direct most of their investments and resources to the country's largest metropolitan areas, usually referred to as tier one cities. However, with growing vendor focus on these markets and greater saturation, growth is slowing and competition is rising. In response, and to grow faster than the market, strategic vendors are now turning their focus to India's tier two and tier three cities. Forrester estimates that these markets represent 14% of India's GDP — versus 11% for the country's eight tier one cities — and 26% of external IT spending in the country, versus 47% for tier one cities. This report examines the ICT opportunities in India's tier two and tier three markets and analyzes distribution strategies to assist vendor strategists who are targeting this long-term imperative.