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 Starting with the usual positives of 1.25 billion, young and aspiring population with increasing purchasing power, strong and resilient economy with high GDP growth of 7.5% in a democratic set up and a market of 200 million consumers, he emphasised that we were WTO signatories with great sense of judiciary and a strong protection for patents and registered trademarks.
But he warned that the overseas producers have to understand that India is different. They must create ‘Bridges to Luxury’ and become ‘Premium to Masses’. After giving the expected spiel about the multi-million rupee Food Park operated by the company and inviting them to partner the Futures Group for growth together by utilising these facilities, he described his 10 simple mantras for discovering the pot of gold in India. Though he was aiming the food industry audience, this could be applicable to any business in general and specifically to wine business as well.
- Troubles will not go away... accept it! Growth will continue...embrace it! Citing the example and statistics of fresh fruit imports, olive oil he showed that the growth had been spectacular in the last 10 years or so, despite several hurdles at initial stages.
- There may be clutter at the bottom...but there is always room at the top. Food Hall- the food superstore concept started by Big Bazaar, where a totally new experience awaits the discerning buyers looking for gourmet foods, specialties, secret ingredients etc. was just an example. There was no cut-throat competition in this segment.
 Define your India. Have a clear market strategy, he said. India is a big and complex market place-you could get lost in it unless you focus on your market and decide how you want to tackle it. - Partner with Modern Retail. It is a revolution in the making. Though it may not be applicable to wine marketing due to complicated laws, he focussed on foods. When I asked him later why Big Bazaar did not enter the business that could add substantially to the top and bottom lines, he hesitated and then said, ‘yes, we should have. But we still haven’t understood the marketing of wines but we should,’ adding that the Foodhalls had started selling them in a small way.
- Bad apples are not unique to India. One bad apple does not destroy the bunch. There might be cases of unethical and immoral importers, but that happens in any market and India is no exception. He told the audience not to judge the whole country just because they have come across a few bad apples.
- It is not just about investment. Get involved. He was referring to many expats willing to invest but not in the problems and challenges faced by the Indian counterparts. He wanted them to participate in their business in terms of understanding it. For instance, people here in the processing industry are not so particular about hygiene. This is an area where they could be involved, as Nestle and Coke had done over the past decades.
- Price is important but not critical. It is the value that is critical. Indians see value in whatever they buy and it’s important to understand this trait and plan accordingly.
- Reach out or you will be lost. While mentioning about the 3 Ps- Partner, Promote and Persevere, he showed a slide with an elderly couple with their grown up son and daughter in law and two grand children. He said, the sellers generally focus on the daughter-in-law assuming she is the decision maker. But it is the patriarch who is more important to woo and the marketer must understand the social psyche.
- Variety is the spice of life. Keep the taste buds excited. Product innovations and introduction of new products to attract the consumer are always important.
- There is life beyond Google. Come and smell the Chai (tea) for yourself. Unless you come to India and see for yourself the difficulties, culture, habits and meet the people, how can you form a correct impression? Forming your opinion about India by researching Google may not be the most appropriate thing and you must visit personally.
Many people would not be sure whether it is a pot of gold awaiting the brave or a mere rainbow but time will tell. But the likes of Nestle and Coke already had enjoyed ‘The Sweet Taste’ of Success and despite the setback received by Nestle last year in the infamous Maggie Noodle case or in the case of Coke when a ban was sought to be put on their production on the assumption that the water level did not meet the Indian standards though it had been selling all over the world-or the case of Pernod Ricard when containerfuls of wine imported from Australia was rejected on vague and reportedly rather arbitrary and flimsy ground, it was the judiciary that came to their rescue by taking a fair stance.
This is perhaps also the reason that most producers-Italians and non-Italians alike, when in a private conversation concede that they are happier dealing with India despite seemingly difficult market place than China which they do not comprehend at all.
Subhash Arora |