1.
- Introduction
The
imports of bottled wine in
India
,
with the country of origin were USD 11.3 million in 2008, with an annual growth
of 34% between 2004 and 2007.
Among the factors that have
promoted the consumption of the wine it is necessary to emphasize the change in
the customs, habits and life style of the Indian consumers (specially of
youngsters and women) due to the economic boom which increased the purchasing
power of a major segmentation of the population, The influence of the cable TV,
Internet, change in attitude of authorities for encouraging the wine
consumption instead of hard liquors, the emergence of a wide variety of wines
of acceptable quality both national and imported, the boom in tourism, the
frequent foreign trips of the nationals and also due to the social status and
health awareness that generates wine.
Chile
, in bottled wine has achieved a progressive position
in the Indian market in the last four years. It is demonstrated by the fact
that in 2004, it was the sixth provider with a participation of 3.94% in the
market and in 2008 it has transformed in the fourth provider with market share
of 4.9 %. As showed in Table No. 3.
It
is necessary to underline that with Chilean exports of USD 566,200,
Chile
experienced a growth of 72.8 % in 2007 whereas the French exports fell
down by 34.6%.
With
regard to 2008 average annual prices of wine, United Kingdom stands out with
USD 8.81/ liter, followed by France with USD 8.69/ litre,
Italy with USD 6.17/ litre, Australia with USD 4.21 / litre,
Chile with USD 3.26 / litre y USA with USD 3.21. This reflects the Chilean
tendency of placing itself in the upper intermediate segment with wines of
prestige and international quality.
This growth of Chilean wine
in Indian market, in full period of financial crisis, basically attributes to
the slogan Value for Money providing Chilean wine of excellent quality
international price and to the promotional activities conducted by the
Mission
in
India
.
At present there exists an
active presence of more than 27 Chilean Vineyards out of which 12 brands have
consistent presence. This number is much more than 12 vineyards existing only
four years ago in 2004.
The recently inaugurated
Commercial office of Prochile among its other goals
for the next three years will aim to consolidate
Chile
as second largest wine
exporter to Indian market with a participation of around 18% and portfolio of
at least 60 regular brands in the market.
The
Chilean strategy will be to promote quality wines oriented to the intermediate
upper segment, given the fact that we would not like to compete with the local
wines, wines from countries without wine tradition and the bulk wines bottled
locally.
In
order to make a difference in the market, we must promote Chilean wine in the
following communication context with slogans such as:
-
Chile
exports its best wine production, not its
surplus.
- The consumption of
Chilean wine grants the best Value for Money.
- Carmenere- an exclusive variety of Chilean wines.
- Chilean Wines, the
only pure variety, not contaminated by pests.
- The promotion and
consumption HORECA of what we exclusively call – The Chilean Glamour Wine
(375 ml Bottle).
2. - Description of Market
Size
The size of the wine market
in
India
is estimated by an annual consumption of 1.395.400 boxes, approximately 12.6
million litres being projected for 2011, and a consumption of 17 million litres
equivalent to approximately 1,900,000 of boxes. The detailed description
follows:
2.1. - Local Production:
With respect to the local
production, at present
India
possess 4 principal producers of wines. They are Indage, Sula, Vinsura and Grover.
There exist also another 20 secondary producers. The Indian government has
strained for encouraging this product, motivating the creation of parks for
wine production in
Maharashtra
.
Also it has implemented internal tax reduction policies for the local
production. At present
India
produces next to 10 million bottles of wine, equivalent to 12 million bottles
(1,110,000 boxes) annually. Out of these it exports 191,600 boxes (128,000
boxes of bottled wine by country of origin, 5,600 boxes of sparkling wine and
530,000 litres equivalent to 58,000 boxes of bulk wine).
India imports approximately
2,530,000 litres, some of 3,373,000 wine bottles equivalent to 282,000 boxes (
262,000 boxes of bottled wine by origin and 20,000 boxes of sparkling wine) and
around 1,750,000 litres in bulk annually( Equivalent to 195,000 boxes).
2.2. - Evolution of Wine
Imports in
India
In 2008,
India
’s wine
import reached up to 20 millions USD, as it is seen in Table no. 3, with a fall
of 13.9% as compared to 2007. This is due to international crisis.
In the market share, bottled
wine leads with imports of USD 11.3 millions, with an annual downfall of 14.7 %
as compared to 2007 in which it was USD 13.2 millions. A spectacular annual
increase of 34 % is seen in 2004 - 2007.
With regard to sparkling wine
the annual market share has increased to 74% between 2004/2007, totalling to
USD 5.6 million in 2008. As far as bulk wine is concerned the imports has
increased to 48% in 2004/2007, totalling to USD 1.7 million in 2008.
The bottled wine
participation is 60% of the whole wine imports. This is due to the consumer’s
awareness on quality wines. This reflects that local consumers have more
confidence in quality of wines bottled in country of origin than bottled
locally.
France leads among the
principal providers of wine in general with a participation of 41.6% followed
by Australia with 17%, Italy with 9.1%, United Kingdom with 4 %, South Africa
with 3.4%, Chile is the sixth provider with market participation of 3% and USA
with 2.6%. As showed in table no. 2.
Table no 1. - Evolution of
wine imports in
India
.
(Period 2004/2008, Values in
USD thousand)
Code
|
Item
|
2004
|
2005
|
2006
|
2007
|
2008
|
220421
|
Bottled
Wine
|
5,470.5
|
8,100.5
|
9,135.6
|
13,169.7
|
11,224.6
|
220410
|
Sparkling
Wine
|
1,225.0
|
2,250.0
|
5,500.0
|
6,240.5
|
5,643.9
|
220429
|
Bulk Wine
|
635.0
|
789.2
|
846.6
|
2,144.0
|
1,669.6
|
|
TOTAL
|
7,330.5
|
11,139.7
|
15,482.2
|
21,554.2
|
18,538.1
|
|
Annual %
Change - General
|
|
52.0
|
39.0
|
39.2
|
-13.9
|
|
Annual
% Change - Bottled
|
|
48.1
|
12.8
|
44.1
|
-14.7
|
Source; Prochile Commercial Office in New Delhi, in base value FOB exports
of the supplier countries, based on the calendar year January to December for
each year.
Note; Indian
Statistics are based on the financial year from April of the base year till
March of next year.
2.2.1. - Evolution of Indian
wine market by country of origin.
In 2008, the imports of
bottled wine in
India
was USD 11,3 millions in front of USD 13.2 millions in
2007. This reflects a downfall of 14.7% but a spectacular half yearly growth of
34 % between 2004/2007.
France leads among the
principal wine producing and exporting countries of 2008, with a participation
28,9 % in the market, followed by Australia with 24.5 %, Italy with 12 %, Chile
in the fourth place with participation of 4.9 % and USA with United Kingdom
with a participation of 4.2 % respectively.
With respect to average
annual prices 2008, United Kingdom leads with USD 8.81 / litre followed by
France with USD 8.69 / litre, Italy - USD 6.17 / litre, Australia - USD 4.21 /
litre, Chile - USD 3.26 / litre and USA - USD 3.21 / litre, reflecting the
tendency of Chile of placing itself in upper intermediate segment with prestige
and international quality wines.
Table no 2. – Wine import of
HS: 2204 in
India
(Period 2004/2008, Values in
USD thousand)
Country
of Origin
|
2004
|
2005
|
2006
|
2007
|
2008
|
USD
(in Thousands)
|
USD
(in Thousands)
|
USD
(in Thousands)
|
Litres
|
USD
(in Thousands)
|
Litres
|
USD
(in Thousands)
|
TOTAL
|
7,330.5
|
11,139.7
|
15,482.2
|
4,563,210
|
21,554.2
|
3,779,477
|
18,538.1
|
FRANCE
|
3,257.4
|
6,046.7
|
8,143.8
|
1,125,025
|
10,984.7
|
905,847
|
8,130.0
|
AUSTRALIA
|
859.9
|
1,360.8
|
1,784.1
|
1,334,871
|
3,007.8
|
1,054,000
|
3,320.4
|
ITALIA
|
879.1
|
1,051.8
|
1,842.3
|
336,294
|
2,254.3
|
276,999
|
1,785.9
|
SINGAPUR
|
105.1
|
133.6
|
148.3
|
25,665
|
165.2
|
75,450
|
1,117.5
|
UNITED KINGDOM
|
583.8
|
543.1
|
1,020.6
|
45,394
|
686.6
|
69,944
|
779.4
|
SOUTH AFRICA
|
52.1
|
129.2
|
149.0
|
516,000
|
760.2
|
686,389
|
669.0
|
CHILE
|
316.9
|
336.8
|
308.4
|
175,910
|
357.3
|
180,226
|
586.4
|
USA
|
408.5
|
370.4
|
791.7
|
558,445
|
1,578.9
|
155,636
|
500.5
|
SPAIN
|
90.7
|
129.3
|
121.5
|
105,014
|
255.4
|
108,645
|
459.7
|
GERMANY
|
193.2
|
413.1
|
388.2
|
117,699
|
471.4
|
77,341
|
435.7
|
NEW ZEALAND
|
209.4
|
139.1
|
87.8
|
25,277
|
278.3
|
20,407
|
243.1
|
USA
|
62.0
|
80.0
|
176.0
|
65,000
|
133.0
|
62,000
|
130.0
|
ARGENTINA
|
60.3
|
60.6
|
248.4
|
56,547
|
241.7
|
39,026
|
124.0
|
HOLLAND
|
63.0
|
49.7
|
53.0
|
1,518
|
45.5
|
3,542
|
101.3
|
PORTUGAL
|
132.6
|
83.2
|
96.5
|
68,784
|
144.2
|
59,924
|
96.3
|
AUSTRIA
|
0.0
|
1.5
|
0.0
|
1,093
|
11.2
|
2,475
|
15.8
|
BELGICA
|
0.0
|
0.0
|
0.0
|
16
|
0.1
|
1,159
|
12.9
|
MALASIA
|
9.2
|
89.3
|
96.1
|
706
|
15.6
|
393
|
7.3
|
CANADA
|
0.0
|
0.0
|
0.0
|
|
7.0
|
|
5.1
|
BULGARIA
|
0.0
|
0.0
|
0.0
|
3,952
|
8.7
|
74
|
0.2
|
Source; Prochile Commercial Office in
New Delhi
, in base value FOB exports of the
supplier countries
Table no. 3 – Imports of
wines in
India
by country of origin, HS: 220421
(Period 2004/2008, values in
USD thousand)
Country
of Origin
|
2004
|
2005
|
2006
|
2007
|
2008
|
USD
(in Thousands)
|
USD
(in Thousands)
|
USD
(in Thousands)
|
Litres
|
USD
(in Thousands)
|
Litres
|
USD
(in Thousands)
|
TOTAL
|
5,470.5
|
8,100.5
|
9,135.6
|
2,354,452
|
13,169.7
|
2,064,338
|
11,224.6
|
FRANCE
|
2,204.3
|
3,943.4
|
3,432.3
|
559,682
|
5,155.3
|
387,727
|
3,369.0
|
AUSTRALIA
|
791.6
|
1,270.9
|
1,446.1
|
454,959
|
1,946.4
|
680,313
|
2,863.0
|
ITALY
|
821.3
|
925.8
|
1,635.5
|
289,455
|
1,879.9
|
227,710
|
1,406.0
|
CHILE
|
222.0
|
307.0
|
308.1
|
103,910
|
327.6
|
173,701
|
566.2
|
UNITED KINGDOM
|
215.5
|
245.7
|
317.2
|
30,350
|
393.2
|
56,243
|
495.7
|
USA
|
350.7
|
289.3
|
727.8
|
550,903
|
1,564.6
|
151,226
|
485.5
|
SINGAPUR
|
101.8
|
131.9
|
142.1
|
23,950
|
143.9
|
44,920
|
484.2
|
SPAIN
|
67.6
|
81.2
|
93.9
|
85,399
|
211.6
|
99,035
|
357.3
|
SOUTH AFRICA
|
47.5
|
112.9
|
118.3
|
70,878
|
302.0
|
130,023
|
282.7
|
GERMANY
|
92.9
|
254.8
|
215.3
|
59,863
|
283.1
|
46,916
|
264.1
|
NEW ZEALAND
|
209.4
|
135.8
|
87.8
|
24,899
|
273.9
|
20,151
|
238.9
|
ARGENTINA
|
60.3
|
60.6
|
248.4
|
35,000
|
241.7
|
14,000
|
124.0
|
HOLLAND
|
54.8
|
40.7
|
16.1
|
1,509
|
45.2
|
3,154
|
89.1
|
PORTUGAL
|
114.4
|
51.0
|
76.5
|
38,760
|
125.6
|
19,002
|
57.4
|
AUSTRIA
|
0.0
|
1.5
|
0.0
|
1,048
|
10.9
|
2,475
|
15.8
|
BELGICA
|
0.0
|
0.0
|
0.0
|
16
|
0.1
|
934
|
9.2
|
MALASIA
|
9.1
|
89.2
|
91.1
|
560
|
6.5
|
369
|
5.4
|
Source; Prochile Commercial Office in
New Delhi
, in base value FOB exports of the
supplier countries
Chilean
participation in the wine exports with country of origin
In the past four years
Chile
has
achieved a major position in the Indian market. This is demonstrated by the
fact that in 2004,
Chile
was sixth provider of bottled wine with a participation of 3.94 % in the market
and in 2008 it has transformed into fourth provider with 4.9 % of the
market share. As mentioned in Table No. 3.
One must emphasize that
Chile
experienced a growth of 72.8 % in 2008 as compared to 2007. Chilean exports
reached to USD 566.200, whereas the French exports fell down by 34. 6 %.
The growth of the Chilean
wine in Indian market, in full period of financial crisis, is basically due to
the slogan Value for Money, given the excellent quality international
price, and to promotional activities realized by
Mission
in
India
.
2.2.2. - Evolution of sparkling
wine in Indian market.
The imports of sparkling
wine, has increased to 74 % annually in the period of 2004/2007, totalling to
USD 5.6 millions in 2008, France being the principal exporter with a
participation 65.5 % in market, followed by Singapore, United Kingdom and Italy
with 10.2 %, 4.6 % and 3.6 % respectively. As shown in Table No. 4.
Chile
has begun its
exports with incipient amount of USD 9.000.
As far as average annual
prices in 2008,
France
was
still on the top with USD 24.7 / litre followed by
United
Kingdom
with USD 21.0 / litre, and
Italy
with USD
8.2 / litre.
Table no. 4. Imports of
Sparking Wine in
India
,
HS: 220410
(Period 2004/2008, Values in
USD thousands)
Country of Origin
|
2004
|
2005
|
2006
|
2007
|
2008
|
USD
(in Thousands)
|
USD
(in Thousands)
|
USD
(in Thousands)
|
Litres
|
USD
(in Thousands)
|
Litres
|
USD
(in Thousands)
|
TOTAL
|
1,225.0
|
2,250.0
|
5,500.0
|
180,844
|
6,240.5
|
137,661
|
5,643.9
|
FRANCE
|
676.3
|
1,629.6
|
4,255.3
|
214,
803
|
5,153.5
|
164,
787
|
4,063.4
|
SINGAPUR
|
0.8
|
1.7
|
6.2
|
1,712
|
19.9
|
30,530
|
633.3
|
UNITED KINGDOM
|
368.3
|
275.2
|
700.0
|
15,044
|
293.5
|
13,477
|
282.5
|
ITALY
|
11.7
|
56.6
|
40.5
|
17,395
|
143.8
|
27,250
|
223.1
|
GERMANY
|
100.3
|
158.3
|
165.8
|
32,933
|
149.9
|
30,425
|
171.5
|
SPAIN
|
23.1
|
48.0
|
27.6
|
7,065
|
24.0
|
9,610
|
102.4
|
AUSTRALIA
|
18.3
|
21.6
|
180.2
|
94,600
|
351.6
|
7,949
|
49.1
|
SOUTH AFRICA
|
3.6
|
5.0
|
11.8
|
5,924
|
16.0
|
7,967
|
16.3
|
USA
|
12.4
|
9.9
|
30.0
|
3,438
|
11.2
|
4,410
|
15.0
|
HOLLAND
|
8.2
|
9.0
|
36.9
|
9
|
0.4
|
388
|
12.2
|
CHILE
|
0.2
|
0.0
|
0.0
|
0
|
0.0
|
2,475
|
9.0
|
PORTUGAL
|
0.0
|
0.0
|
0.1
|
0
|
0.0
|
1,312
|
4.3
|
NEW ZEALAND
|
0.0
|
0.0
|
0.0
|
378
|
4.3
|
256
|
4.2
|
MALASIA
|
0.0
|
0.1
|
5.0
|
146
|
9.2
|
24
|
2.0
|
BULGARIA
|
0.0
|
0.0
|
0.0
|
364
|
1.0
|
0
|
0.0
|
AUSTRIA
|
0.0
|
0.0
|
0.0
|
45
|
0.4
|
0
|
0.0
|
Belguim
|
|
|
|
0
|
0
|
225
|
3.7
|
Source; Prochile Commercial Office in
New Delhi
, in base value FOB exports of the
supplier countries
2.2.3. - Evolution of Bulk
wine market in
India
.
With respect to Bulk wine
imports, the imports has increased annually to 48% in 2004-2007, with the value
of USD 1,7 millions in 2008.
France leads among the
principal providers with a 41% of the market share, followed by Australia with
24 %, South Africa with 21.7 % , Italy, Portugal and Chile with a participation
of 7.8%, 2% y 0.7% respectively, As shown in Table No 5.
As far as average annual
prices in 2008 are concerned,
France
stands out with USD 1.97/litre and
Australia
with USD 1.12/litre.
This is the segment where
Chile
prefers
not to promote itself for not being associated with the inferior quality wine.
Table no. 5. Imports of Bulk
Wine in
India
HS: 220429
(Period 2004/2008, Values in
USD thousands)
Country
of Origin
|
2004
|
2005
|
2006
|
2007
|
2008
|
USD
(in Thousands)
|
USD
(in Thousands)
|
USD
(in Thousands)
|
Litres
|
USD
(in Thousands)
|
Litres
|
USD
(in Thousands)
|
TOTAL
|
635.0
|
789.2
|
846.6
|
1,758,512
|
2,144.0
|
1,342,388
|
1,669.6
|
FRANCE
|
376.8
|
473.7
|
456.3
|
350,450
|
674.3
|
353,333
|
697.6
|
AUSTRALIA
|
50.0
|
68.3
|
154.1
|
785,313
|
709.9
|
365,692
|
408.3
|
SOUTH AFRICA
|
1.0
|
11.2
|
18.9
|
439,189
|
442.2
|
548,345
|
369.7
|
ITALY
|
40.3
|
69.4
|
145.4
|
21,821
|
184.1
|
18,067
|
131.7
|
PORTUGAL
|
18.2
|
32.2
|
19.0
|
30,024
|
18.6
|
39,610
|
34.5
|
CHILE
|
94.7
|
29.8
|
0.0
|
72,000
|
29.8
|
4,050
|
11.3
|
SPAIN
|
0.0
|
0.0
|
0.0
|
12,550
|
19.8
|
o
|
0.0
|
USA
|
45.4
|
71.3
|
34.0
|
4,104
|
3.1
|
0
|
0.0
|
GERMANY
|
0.0
|
0.0
|
7.1
|
24,903
|
38.4
|
0
|
0.0
|
UNITED KINGDOM
|
0.0
|
22.2
|
3.4
|
0
|
0.0
|
0
|
0.0
|
SINGAPUR
|
1.7
|
0.0
|
0.0
|
3
|
1.4
|
0
|
0.0
|
NEW ZEALAND
|
0.0
|
3.3
|
0.0
|
0
|
0.0
|
0
|
0.0
|
BULGARIA
|
0.0
|
0.0
|
0.0
|
744
|
1.2
|
0
|
0.0
|
Source: Prochile Comercial office in
New Delhi
, in base value
FOB of Supplier countries exports.
3. - Evolution of Chilean
wine exports to Indian market by companies – Vineyards.
The exports by Chilean wine
yards to the Indian market have increased significantly in last four years.
This can be seen in Table No. 6.
At present there exists an
active presence of more than 27 Chilean Vineyards out of which 12 brands have
consistent presence. This number is much more than 12 vineyards existing only
four years ago in 2004.
The vineyards that have a
more active and regular presence in the market are Concha y Toro with 12.1 % in 2008, followed by Tarapaca with 10.2 %, Montes with 8.5 %, Casa Lapostolle with 8.2 %, Miguel Torres with 8 %, Anakena with 5.1 %, Rothschild with 2.5 %, Valdivieso with 1.9 % and Saint Ema with 0.9 % of participation
of the market as shown in detail in Table no. 6.
Table no. 6. -
Evolution of wine exports by Chilean vineyards
(Period 2004/2008, Values in
USD thousands)
Viña |
Monto
2003 |
Monto
2004 |
Monto
2005 |
Monto
2006 |
Monto
2007 |
Monto
2008 |
2008% |
Viña Concha y Toro
S.A. |
|
28.178 |
35.385 |
44.741 |
25.862 |
60.034 |
12,10 |
Viña Tarapacá
Ex-Zavala S.A. |
28.720 |
59.810 |
86.722 |
85.924 |
66.935 |
50.400 |
10,15 |
Viña Montes S.A. |
20.044 |
29.660 |
6.988 |
29.457 |
48.140 |
42.130 |
8,49 |
Casa Lapostolle S.A. |
13.220 |
41.165 |
|
38.688 |
22.820 |
40.610 |
8,18 |
Sociedad Vinícola
Miguel Torre |
|
|
13.200 |
14.350 |
31.487 |
39.728 |
8,00 |
Viña de Martino - Jugos Del Ma |
|
|
|
|
|
25.926 |
5,22 |
Viña Errázuriz S.A. |
|
|
16.126 |
|
|
25.920 |
5,22 |
Viña Anakena (Agrícola y Fores |
|
|
|
5.120 |
12.102 |
25.415 |
5,12 |
Viña Undurraga S.A./ Distribui |
|
|
|
|
|
24.728 |
4,98 |
Dewinko S.A. |
|
|
|
|
|
20.620 |
4,15 |
Viña Santa Mónica
Ltda. |
|
|
|
|
|
20.000 |
4,03 |
Viñedos Emiliana
S.A. |
|
|
|
10.638 |
16.975 |
20.000 |
4,03 |
Barón Philippe de Rothschild M |
|
|
23.934 |
13.640 |
3.183 |
12.416 |
2,50 |
Viña San Pedro
Tarapacá S.A. |
|
|
|
|
|
12.300 |
2,48 |
Viñedos Torreón de
Paredes S.A |
|
|
|
|
|
11.559 |
2,33 |
Viña El Aromo |
|
|
|
|
7.740 |
11.100 |
2,24 |
Viña Caliterra S.A. |
4.550 |
|
|
|
3.500 |
10.500 |
2,12 |
Viña Seña S.A. |
|
|
|
|
7.500 |
10.500 |
2,12 |
Odfjell Vineyards S.A. |
|
|
|
|
|
9.593 |
1,93 |
Viña Valdivieso
S.A. |
6.480 |
9.140 |
85.779 |
57.715 |
3.040 |
9.480 |
1,91 |
Vinos Santa Ema S.A. / Viña Sa |
1.560 |
|
2.548 |
5.760 |
2.666 |
4.406 |
0,89 |
Antinori Matte S.A. |
|
|
|
|
|
4.358 |
0,88 |
Viña Luis Felipe Edwards Ltda. |
|
|
7.033 |
|
|
1.350 |
0,27 |
Sociedad
Comercializadora de V |
|
|
|
|
|
1.221 |
0,25 |
Viña Morandé S.A. |
14.508 |
16.800 |
|
|
|
1.128 |
0,23 |
Agrícola Santa
Cristina Ltda. |
|
|
|
|
|
748 |
0,15 |
Bodegas y Viñedos
de Aguirre S |
|
|
|
|
5.413 |
170 |
0,03 |
Viña Valles de
Chile S.A. |
|
|
3.350 |
2.400 |
|
|
|
Viña Los Robles |
|
29.760 |
29.748 |
|
|
|
|
Viña Cremaschi Furlotti |
|
3.331 |
14.825 |
|
|
|
|
Viña Vistamar Ltda. |
|
|
3.750 |
|
|
|
|
Laroche Chile S.A. |
|
44.485 |
|
|
25.064 |
|
|
Viña Santa Carolina
S.A. |
|
|
|
|
7.380 |
|
|
J. Bouchon y Cía. Ltda. |
|
|
2.752 |
|
5.616 |
|
|
Viña San Nicolás Wines S.A. |
|
|
|
|
29.760 |
|
|
Agricola e Inmobiliaria Cantal |
|
|
1.470 |
|
|
|
|
Terramater S.A. |
5.492 |
6.409 |
3.145 |
|
|
|
|
Bodegas y Viñedos Dussaillant |
23.040 |
23.040 |
|
|
|
|
|
Viña La Rosa S.A. |
|
15.980 |
|
|
|
|
|
Nevada Export S.A. |
9.120 |
9.120 |
|
|
|
|
|
Viña MontGras S.A. - Agrícola |
7.680 |
|
|
|
|
|
|
Sur Andino S.A. |
4.830 |
|
|
|
|
|
|
Sociedad An Viña Santa Rita |
3.279 |
|
|
|
|
|
|
Total |
142.522 |
316.878 |
336.754 |
308.431 |
357.282 |
586.400 |
100,00 |
Source: Prochile commercial office in
New Delhi
4.- RELEVANT
INFORMATION ABOUT THE MARKET
4.1.- Characteristics of the Indian Market.
India
has converted
into one of the major economies with the fastest economic growth globally
during the last few years. What should be noted is the pillars on which it
relies for growth, thereby enhancing a progressive development in the service
sectors (India has consolidated its position as a reference point for
Information Technology, for Services regarding Business Development and support
and telecommunications), with the industrial growth in the automobile, pharmaceutical
and textile sectors. Subsequently,
India
has developed an emerging
middle class that characterizes the commercial opportunities of the New India.
With over one billion
inhabitants and a population with sufficient purchasing power to buy consumer
goods from foreign countries significantly smaller, but equally attractive, the
number of High-Income families is estimated at over 20 million and about 300
million citizens who comprise the middle class.
4.2
.- Duties on wine.
The Duties on agricultural products are between 30 and 40%, with frequent
anti-dumping proceedings. The duties on non-agricultural products have fallen
slowly but steadily at an annual rate of 2.5%.
The high tax imposed by the Indian government on foreign wines, makes their
price to rise excessively.
The wines pay three customs
taxes: The "basic duty", which is uniform for all the wines, of 150%
on the CIF value, an "additional tax" of 4% on the CIF value and
other "special tax" 4% on the basic tariff, ie 6% on the CIF value and total tax is 160% on the CIF value.
4.3 .- Technical Product
Regulations. Labeling
The rules governing the
marketing of alcohol differ in the 28 states and 7 Union territories of
India
. It is
precisely for this reason that to enter the Indian market, it is especially
necessary to study carefully the rules in the target states, as well as
selecting a competent distributor importer or agent, who owns a marketing
network in the market aggressively.
Indian regulations
on wine is determined by the Bureau of Indian Standards (www.bis.org.in). This
organization publishes documents for each type of alcohol, specifying the
current rules in details and standards of their manufacturing process. As an
indication, it should be noted that to date no imported alcohol has been the
subject of control, reflecting that the Indian authorities believe that the
control rules in the countries of origin, are sufficient to protect the Indian consumer.
The labeling of the bottles may be the same as it is in origin, maintaining the same
information and even the language, but must include additional labeling containing detailed information of the importer,
mainly:
-The content in units
-The name of the product
-The name, full address of
the manufacturer and production site
-The name and address of the
importer
-The place of packaging or
bottling in the event that the product
be bottled in
India
.
-The country of origin
-The level of alcohol
-The MRP or consumer Maximum
Retail Price
4.4
.- Distribution Channel
IMPORTERS
DISTRIBUTOR
EMBASSIES HOTELs
(In Different States)
HOTELS FINAL
CONSUMERS
The wine distribution system also varies between states. Thus, states like
Karnataka give more facilities for distribution, and have a highly developed
network of supermarkets where you can find wine along with other consumer
goods. This facility also exists in other states like Maharashtra (Mumbai) and
Goa
.
However, this contrasts with the situation in
Delhi
, where the wine is distributed mainly
in the Wine Shops governed by the local government. Moreover, the wine that is
usually found in these shops are locally produced and
are of low quality, there is very little presence of imported wines in these
shops. The Indian consumer usually finds wines, national and / or imported in
the following locations:
-Luxury Hotels : In states like
Delhi
,
five-star hotels represent the main hub for wine consumption. So the
restaurants located in these hotels offer a variety of high quality wines.
These hotels encourage the sales of international wines, but also showcase a
minimum presence of national wines. They usually highlight French wines, which
in some cases constitutes at least 50% of the total wine list.
The five-star
hotels have a great advantage over the point of sale / consumption of wines in
India ; they fall in a special tax bracket, due to which they are exempt from
paying the national tariff (Basic duty) imposed on the wine as an incentive to
capitalize on the Tourist movement.
-Distribution : Comparable to the western distribution, we find large retail chains like
Reliance in the state of
Maharashtra
,
with a highly developed commercial network. This development in the
commercialization of wine, is mainly visible in the
states of
Maharashtra
and Karnataka.
-Retail Trade : Small
boutique stores focused on selling top quality wines as compared to the most
popular supermarkets. The type of customer who visits these stores usually
belongs to a medium-high income group , and is
generally more wine literate. In Delhi there are a small number of such
establishments approximately ten in number, while in states like Maharastra, due to the strong distribution network, such
stores have successfully proliferated to target a more specialized and focused
clientele.
-Small hotels,
restaurants and pubs : Visited by high-income consumers, they offer a
variety of wines the presence of foreign tourists in these establishments is
also ever increasing. However, They have to cope with
the payment heft amounts for the procurement of license for the sale of Alcohol
and wines. Therefore, only very fancy restaurants carry a wine list.
In India
advertising and strategic campaigns related to the promotion of wine and
alcoholic products is prohibited, as such international liquor brands have
included mineral water in their portfolios whose consumption of which can be
promoted on Television-thus creating awareness for the liquor brand, On the
other hand, the field of wines resorts to competitive activities such as Wine Tastings, Wine Dinners, Wine Pairing Events involving local
cuisine, inviting journalists and importers of wine and participation in
specialized trade fairs, to promote their line of products.
4.5- Consumption Habits and Demand Analysis.
-Wine is mainly consumed in urban areas, which accounts for 80% of demand, especially
in the major metropolises of the country: Mumbai (39%),
Delhi
(23%),
Bangalore
(9%) and
Goa
(9 %), which are primarily the main centers of international tourism, the balance 20% of
consumption constitute the remaining states.
-Another symptom of the concentration of consumption in urban areas is the
emergence of "wine clubs" in these cities.
-Products such as wine
encounter more obstacles than other “consumer goods of western origin” at the
time of entering the Indian market:
-The price is perhaps the main problem. With an average per capita GDP close to
$ 660 p.a. , very few can afford to buy a bottle of
wine which costs around $ 30 minimum in a hotel.
-The Economic Growth of the country, in recent years
India
has
registered a strong economic growth that has allowed the emergence of a wealthy
minority class with strong purchasing power and growing trend of purchasing
traditional western consumer goods, who can afford the purchase of luxury
goods, like wine.
-Opening to the world,
India
is
becoming a focus of attraction for the whole world. In major Indian cities it
is becoming increasingly common to find high quality international products.
Thus there is a gradual increase in shops that sell international products
coexisting in the same space with the traditional convenience stores.
-Emergence of associations of wine, wine lovers in general, persons
belonging in one way or another to the wine industry have created a significant
number of associations that seek to educate people of the properties of wine,
spread greater knowledge about quality wines and the best combination of Indian
dishes with different wine varieties such as Cabernet Sauvignon, Merlot, Carmenere, Shiraz, Sauvignon Blanc, Chardonnay.
Thus, it is feasible to find these wine lovers, grouped into "wine
clubs" in the main centers of consumption in the
country:
Delhi
, Mumbai,
Bangalore
,
Chennai,
Chandigarh
and Hyderebad.
5 .- CONCLUSIONS AND
RECOMMENDATIONS
The demand of the Indian
consumer is determined primarily by the purchasing power of their people and
religious traditions, but its consumption is being stimulated by access to
Internet, Western films, more and more frequent trips outside the emerging
middle class, and the boom in tourism. The potential consumer segment is
represented by almost 250 million consumers with purchasing power in the ABC
group, those who enjoy an income that allows them to access delicatessens such
as wine, salmon and fruits of a Mediterranean climate.
According to McKinsey study,
there is a top consumer class with annual income of USD 10,500 which will grow
from 3.6 million households in 2005 to 42.6 million households by 2025, which
are potential consumers of products such as wine, as well as the second group
of consumers consisting of 95 million families.
Indian society is aware of
economic changes taking place in the country, which simultaneously is creating
a social change. The assimilation of the tastes and habits of western
consumption is a phenomenon that extends across the emerging economies,
especially in countries like China and India, in this context products such as
wine are seend by the Indian consumer as products
that give them a esteemed value, they are seen as products of quality that
promote good health and is looked upon as a status symbol.
Access to the Indian market requires patience and a process of adaptation and
assimilation of the Indian culture. It is difficult to achieve a short term
result in this country where personal relationships are important and although
the fact of being an English speaking population facilitates communication,
dependence of such diverse cultures, requires an understanding of the business
culture in
India
to work and achieve results in this market.
Therefore,
it is recommended to enter the market through a local partner, preferably with
experience in dealing commercially and professionally with western countries,
in the event of an eventual business agreement, should possess the knowledge of
the administrative and bureaucratic processes of the country and the contacts
available, can be the deciding factor to facilitate the company to enter the
commercial/industrial market of the country.
Perseverance
and presence are two equally important concepts. It is necessary to maintain
that personal touch that differentiates the company from its competitors
qualitatively. The Indian entrepreneur in general, aims to establish a long
term industrial relationship, whereby the initial contact face to face, is key to the success of its business.
With regard to building
strategies for Chilean wine, although BIO (Bottles In Origin) wines have
achieved a certain position in the Indian market in the last four years as
evidenced by the fact that in 2004 we were the sixth largest suppliers with a
share of 3 , 9% of the market and in 2008 have become the fourth largest
provider with a market share of 4.9% , with Chilean exports going up by USD
566,200, experiencing a growth of 72.8% compared to 2007, must be strengthened
with promotional activities.
There
is now an active presence of more than 27 Chilean wineries, however only 12 of
them have had a permanent presence in the market.
In
October 2009, the government recently announced new wine distribution policies
to allow the sale of wine in shopping malls, supermarkets, restaurants
and departmental stores, creating a more open consumer access to wine,
believing that the consumption of wine is more healthy than hard liquor, the
Trade Office has set goals through dissemination activities, participation in
fairs, realization of Chilean Food & Wine Festival, Wine Shows, Inviting
importers, inviting journalists related to Food and Beverage, Holding Chilean
week in India with shows and wine tastings, to
position Chile as the second supplier in the market with a 18% participation in
the next three years and create a permanent presence of at least sixty leading
Chilean Wine Brands in the Indian market.
The
foremost thing, it is a combine effort of Central Head of Prochile,
Indian importers of Chilean wine, the Indian Wine Academy, the Indian Wine
Society and Chilean vineyard.
The Chilean strategy will be
to promote quality wines oriented to the intermediate upper segment, given the
fact that we would not like to compete with the local wines, wines from countries
without wine tradition and the bulk wines bottled locally.
Reported with permission from
Mr. Nestor Riveros
Commercial
Counsellor
ProChile
Embassy of Chile
146 Jor Bagh, New Delhi
|