|  'If you want to enter the Indian wine market, you must have Passion for India, Propensity to travel, Price awareness and foremost, Patience and Perseverance,' were the words of advice given by Subhash Arora, President of indian Wine Academy to the audience at the Seminar on 'Emerging markets: China, Russia and India ', organised at the recent Prowein 2007 in Düsseldorf.
The conference was organised by Meininger publication group which also brings out the bi-monthly wine magazine, Wine Business International. Arora is the Indian correspondent. Chantal Chi ( China ) and Igor S. ( Russia ) were the other two invited speakers who talked about the prevalent state of wine industry in their countries.  Joel Payne and Robert Joseph were the facilitators.
The topic, 'Indian wine consumption: more than a spoonful' might discourage any novice German producer from thinking Indian market. With the 150,000 case- a- year market growing at 30-35% annually, it may not be on the radar screen of most. But, the 'India Shining' and 'Exotic India', emerging super power has enough excited producers who want to make an entry as they feel now is the right time.
There are two factors which have recently emerged as very positive. One is the likelihood of reduction of taxes. With the EU and US having approached WTO formally the pressure is on the government to reduce taxes. Steps are already underway to pass a legislation that will bring down the existing duties of 264% to almost half.
The other significant factor is that of many Indian states like Maharashtra taking a progressive step of liberalising sales through retail, including super markets, the latest retail revolution fermenting in India . With Wal-mart, Carrefour, Tesco and the powerful Indian supermarkets like Big Bazaar reaching unprecedented heights, the retail wine market is poised to take a quantum jump in the total market share even at the existent levels of taxes.
Another positive factor for German wines is that Riesling being a dry and fruity, or semi-dry style with lower alcohol is a perfect match for spicy Indian food. As the culture of wine with food evolves, the growth in consumption of German Rieslings might out perform other wines or varietals.
But it is essential to have a Passion for India , it being a given that most producers will have passion for wine and for selling it. India , like many other countries has its own culture, history and heritage and its unique style of operating business and even the lifestyle. One has to accept it with passion-there were many in the audience who feel emotionally attached to India . One has to enjoy the journey of reaching the targets (or maybe never achieving success) to make a satisfactory progress.
 Propensity to travel to India for promotion is also the key. Promotional steps like free wine cases, literature, and visits for the importer or his prime clients, alone is not enough. One has to be prepared to make a personal presence. 'As I talk to you, Ernie Loosen from Dr. Loosen and Fritz Hasselbach from Gunderloch are in India meeting with their importer Brindco and many of his hotel and restaurant clients. So was Egon Mueller in India a couple of months ago and Dr. Burklin Wolf a few months before.
Price is important factor in many markets. It takes a special significance because of prohibitive duties which hinder the retail sales. Of course, since most hotels do not pay any import duty, they are looking for mid and high- end wines for their premium customers. There is no room for cheap table wines and the market for expensive wines is limited but exists, with potential for growth.
 Last and important aspect Arora emphasised, was that one must view India as a long term market without expecting quick results. Things work at a slow pace, especially since there is more supply at the current levels and the paperwork and bureaucracy are no help. One has to take the positive view that things will work in the long term and be patient. Any expectations of a major early breakthrough will result in premature frustrations.
Arora echoed the sentiments of earlier speakers that finding the right importer was the most important ingredient in the recipe for success and one must be very careful of the payments from importers and fly-by-night operators which exist in any market. He also emphasised on the importance of participating in wine shows like IFE-India as they offer a platform for surveying the market, getting a feedback on the market and its tastes as well. |
