capitalizing on the consumer market opportunity in india€¦ · changing india challenges and...
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Changing IndiaChallenges and Opportunities
Capitalizing on the
Consumer Market
Opportunity in India
Changing IndiaChallenges and Opportunities
Forum of Indian Food Importers
1600 Brands
5.2 Billion US$
167 Members
67 Countries
Changing IndiaChallenges and Opportunities
Knowing India
India At a Glance
Population 1.3 Billion
Consuming Class 300 – 350 Million
GDP Growth Rate 7.3 % (2017Est.)
Polity Democracy
Food Patterns Diversified
Agriculture Core
Regulatory WTO Signatory
Potential Huge
Changing IndiaChallenges and Opportunities
Understanding India
• Strong Economy– Resilient to the current crisis
• 350 Million Consumers!– Unified by aspiration
• Young population– Part of a global village
• Small Families– Open to change
• High disposable incomes – Willingness to spend
• Media Revolution– Part of a Global Village
• Imported Foods– Niche to Mainstream
• Now we have MODI……– No Black Money
Changing IndiaChallenges and Opportunities
Reality Check on Common Beliefs
• Too far– Direct flights
• Very High Import Duty– Sales rocketing
• Global Retailers not present– Indian retailers spending Billions
• Unsafe – Not true
• Non Payment– Proud Payers
• No Room – Tip of Iceberg
• Too Hot– You are correct!!!
Changing IndiaChallenges and Opportunities
Food Industry in a Glance
• India’s Total Food Market: US$ 530 Billion
– Projected Size: US$ 1250 Billion by 2020
• Processed Food Products: US$ 130 Billion
– Projected Size: US$ 450 Billion by 2020
• Average growth rate: 27%
• World Ranking: 10th-largest food consumer
– Projected Ranking: 5th-largest consumer food
market by 2025
Changing IndiaChallenges and Opportunities
Changing Consumption Priorities… Yet Food & Grocery To Be
By Far The Biggest For Decades To Come
Savings & investment
9%Clothing, footwear and
accessories
5%
Consumer
durable/appliances
7%
Vacation
3%
Eating out
6%
Movies and entertainment
3%
Books and Music
4%
Food and grocery
57%
Home textiles
1%Personal care items
5%
Source: NCAER
Changing IndiaChallenges and Opportunities
Changing IndiaChallenges and Opportunities
Changes in Indian Retail
• Retail revolution even without the direct entry of global retailing giants.
• Several new hypermarkets, supermarkets springing up across the country funded by domestic investment
• Likely investment in retail and supply chain to the tune of $22 billion in the next five years. Over 600 retail malls are being planned across the country.
Changing IndiaChallenges and Opportunities
Changing Retail
Changing IndiaChallenges and Opportunities
Retail Glimpse
Changing IndiaChallenges and Opportunities
What India Imports
• Food Imports growth 27%
• India Food & Grocery retail is whopping 626 Billion US$
• Fish like basa has grown more than 100% ( 50 Million US$ )
• Cocoa beans has grown more than 100% ( 228 Million US$ )
• Edible Oil has grown more than 66% ( 15 Billion US$ )
• Chocolate has grown more than 49% ( 114 Million US$ )
Changing IndiaChallenges and Opportunities
What Ecuador Export
Changing IndiaChallenges and Opportunities
FSSAI Labeling Requirements
Changing IndiaChallenges and Opportunities
IMPORT FEDERATION
at Food Shows
Changing IndiaChallenges and Opportunities
IMPORT FEDERATION
RECEPTION 2016
Changing IndiaChallenges and Opportunities
IMPORT FEDERATION HORECA
EVENT 2016
Changing IndiaChallenges and Opportunities
Steps for Future
• Have India on your radar
• Have a well defined entry strategy
• Due-diligence of partners
• Plan on promotions
– Retail Program – Sampling
– Trade Media and PR
– Trade Shows
• Sustained efforts will be the key
• Enter Establish Persevere
Changing IndiaChallenges and Opportunities
THANK YOU