India and Australia have a trade relationship that can grow

A great source of information about Asia is ASIALINK here in Australia – and for those interested in India their INDIA STARTER PACK is valuable.

Australia’s economic relationship with India has expanded significantly in recent years – particularly exports of minerals and energy, as well as our provision of education services to tens of thousands of Indian students.

We now have the basis to do more. It will take some marketing creativity and a realisation that brand “Australia” goes down well in India.

Two-way goods and services trade between Australia and India totalled AUD 27.4 billion in 2017. Major Australian exports to India included coal (AUD 9.2 billion), education-related travel (AUD 3.4 billion) and vegetables (AUD 1.38 billion). Our main imports from India were refined petroleum (AUD 1.6 billion), medicines (AUD 335 million), pearls and gems (AUD 274 million) railway vehicles (AUD 199 million). 

The total value of Australian goods exports to India for 2017 was AUD 15.7 billion, making it our fifth-largest goods export market. We exported an additional AUD 4.4 billion in services to India, a figure primarily made up of education-related travel services and other personal travel.

Time to review your India market entry strategy? Let’s talk.

India’s “festive season” runs to the end of the year – brands should take the digital advertising route

Right from August, India gets into a festive mood.

In India this is the time to shop. But what about this year, with the impact of Covid19?

Sanjay Mehta is the Joint CEO of digital marketing consultancy Mirum India and he has some sound advice for brands and the festive season.

“What should you do to become a winning brand? Yes, you’ll certainly want to do marketing, but what specifically? It may not be the best time to experiment with expensive brand campaigns, simply because the lack of measurability of such campaigns makes it difficult to evaluate impact. Your key objective would be to spend money to deliver the best ROI in this challenging year.

“Digital advertising is the most potent weapon for a marketer to reach the consumer. After all, the Covid era has definitely seen significantly increased online time spends by the consumer. And the high level of measurability on digital allows you to do extremely result oriented marketing.

“Digital advertising is often used as a catch-all term to cover several different types of online marketing strategies, but what you should include in your media plan is a good combination of search engine marketing, some programmatic display ads — most certainly social media ads on platforms like Facebook, Instagram, Twitter, etc — video ads, and maybe a good influencer marketing programme as well.

“In these last few months of stay-at-home, we have seen several edtech, fintech and healthcare brands create a huge market for themselves, solely using such digital advertising means.

“The overarching recommendation is to have a good budget apportioned for digital advertising, and spend it prudently on the best result-producing media, to ensure high impact” Sanjay says.

He also advises brands to be set up for selling online.

“Additionally, owing to the consumer now getting used to the convenience of online shopping, ensure that your brands are well-set up to be sold online, and provide the consumer a very seamless experience shopping at your online store.

“Get set for digital fireworks in your marketing mix for the festival season and have a happy Diwali for your business!” he concludes.

So – get involved and active in India’s festive season.

E-commerce and wellness trends spark new opportunities in South Asia, says Austrade

The health & wellness trend

Since the onset of the coronavirus pandemic, consumers in South Asia have focused on boosting their health and immunity. This is a sector where Australian companies have already made commercial inroads — and more opportunities will arise. Australia’s iconic wellness brand, Swisse, reacted quickly and is now selling across 10 major e-commerce platforms in India.

Indian consumers are highly receptive to Australian wellness products. Consumers appreciate our clean, green and reliable manufacturing standards, and these high standards confer an automatic brand premium on Australian wellness products.

Similarly, there is increased demand across South Asia for products that are perceived to boost people’s immune system. In India and Bangladesh this applies to fresh produce, and in particular to Manuka honey. The demand for Australian citrus in Bangladesh has remained high this year, even during the local harvest season.

E-commerce: the next big shift

The rapid growth of e-commerce in the health and wellness sector is accelerating opportunities for Australian companies and South Asia is uniquely poised for a boom. With a combined 670 million internet users – and over 130 million online shoppers – the region is the second largest mass market for Australian companies, second only to China.

Growth in regional e-commerce is rapid. Online retail clocked A$75 billion in sales across South Asia in 2018–19. With year-on-year growth of over 40 per centthe region’s internet economy is forecast to be worth more than A$200 billion within the next five years.

Based on market observations by Austrade in South Asia, we forecast that the market for Australian e-commerce products will grow exponentially in the coming years. This applies especially to health, beauty, nutraceuticals and processed-food products.

The impact on Australian exporters

These two consumer trends – a growing appetite for wellness goods and enthusiasm for e-commerce – create good scope for Australian companies wanting to diversify their export markets to the South Asia region. Australian companies with a brand narrative that speaks to health and immunity will likely find ready markets among consumers.

Thanks to Austrade for the above analysis

India attracting investment during the pandemic and USA is the largest trading partner for a second year

Since March, India has received over $20 billion of new investment from Western companies despite the pandemic.

Thanks to John Bell, Client Relations, Amritt, Inc, Malibu California for this information.

Here are  four examples of significant improvement in bilateral trade between the two countries (India and USA) during the pandemic:

Dozens of large and small organizations depend on Amritt as their trusted advisor to succeed in India, whether selling, sourcing or leveraging talent.

You can Email John Bell at johnb@amritt.com

 

Two Indian business giants are innovating during Covid19.

Expansion often means exploring the unexplored.

Two of India’s largest companies have done it.

Reliance Industries Ltd on Wednesday said it’s going to expand its food-and-grocery play in JioMart to include fashion, consumer electronics, and smartphones by this festive season. Tata Consulting Services (TCS) on July 8 launched Quartz smart solution to offer cryptocurrency trading.

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JioMart’s plan to revolutionise the e-grocery space involves the Kirana stores, the oldest form of local mum and dad retail in India.

JioMart has been bringing small stores online, thereby putting kirana store owners at the centre of its plans. What’s in it for Reliance? The Kirana stores become last point of delivery in the logistics trail, plus, by digitising a local store you open a minefield of hyperlocal information. With a larger size of kirana-store customers, B2B e-commerce platforms get a robust database of actual sales instead of estimates. This data can be sold to brand manufacturers. It’s one of the biggest revenue streams for any company taking kirana stores online. RIL is one smart business!

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TCS is looking to get an early-mover advantage with Quartz, having a big impact in the global enterprise blockchain-solutions market. Its new product, Quartz, aims to make swift inroads into cryptocurrency trading in countries such as Switzerland and Singapore where it’s legal. TCS is eyeing high-net-worth investors, private banking, and wealth-management segments. However, Quartz may not find takers in India in the absence of regulatory clarity.

How India is different from China – insights from Asialink Business

Asialink Business has a wonderful Asian Market Update Series and a recent one focused on India.

One of the speakers was Mary Manning – Portfolio Manager at Ellerston Capital.

Dr Manning manages the Ellerston India Fund among other Asian investments.

She detailed why India is unique and not the next China. For example, the structures of the two economies are very different and beyond coal, exporting bulk commodities is not going to be the bedrock of Australia’s relationship with India.

India is also at a very different stage of economic development to China, with different consumer preferences, price points and distribution channels. These factors give rise to a completely different set of sectoral opportunities, that will most likely require capital investment on the ground – but one size does not fit all when it comes allocating capital in India.

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Dr Manning cited several examples of successful investment in India by multi-national corporations that cut across geographies, sectors, time frames and business models, such as majority stakes in listed companies, through to unlisted joint ventures and distribution agreements. These companies include household names in Unilever, Suzuki, Prudential, Macquarie, Facebook, Alibaba, McDonalds, Walmart, and QBE.

Dr Manning said the higher returns on equity that could be achieved in India were a major reason why Australian companies should be considering investment opportunities there.

She said there was currently an investor scramble for ‘new economy’ assets in India in key areas such as healthcare and infrastructure and while good buying opportunities could present over the next six to 12 months for equity investors – with the Indian economy weakened by COVID-19 – a long-term view was needed.

India_At_a_Glance_Country_Starter_Pack

7 ways to succeed in wonderful India

This short list can be your guide to success in wonderful India:

  1. Bring a culturally aware and adaptable mind to India – you will need both. By “culturally aware” I mean more than how to greet and exchange cards. Cultural awareness is understanding how the other thinks and requires some study and effort.
  2. Develop some flexible plans for India – they will need to change!
  3. Commit to India for the long term. One or two years is not enough. I have been going to India since around 2005 and still learning new things and making new connections – to find a way through the maze that is India.
  4. Make social media a part of your program to build your brand and product awareness in India – the shift to social media/digital marketing there is huge.IndiaDigitalEco
  5. Adapt planning and approaches for the need of your business and sector. You might need a quick market study – or you might need studies over several years. Each is different.
  6. Learn as much as you can about your potential market – connect with your potential customers and see how they operate and what is happening in their sector.
  7. Let the market build a relationship with you and learn about your business. Again, like all the other points, this takes time.

CONCLUSION

It is going to take time to succeed in India. But for one of the biggest most dynamic markets with the youngest population on the planet, investing your time will pay off.

Why get closer to India? About 600 million people, more than half India’s population, are under 25 years old; no country has more young people. Remember the economic impact of the western “baby boom”? It is time the west moved closer to India in trade, culture and tourism. What do you think? As the great Indian philosopher Rabindranath Tagore said: “You can’t cross the sea merely by standing and staring at the water.”

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Indian retail massive shift to online

INTO INDIA has previously commented on the changing face of retail in India. Now here is the BIG NEWS:

The Indian online grocery market is estimated to exceed sales of US$3.19 billion in 2020.

This is a massive 76% jump over the previous year.

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FMCG retail in India is being transformed – and it is not just Covid 19 – new younger urban consumers prefer tech shopping.

Flipkart is the biggest online retailer with about 38% market share, closely followed by Amazon.

For Australian businesses, Austrade has established The Australian Store at Amazon India.

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Marketing to India’s millions is now about social media and e-commerce

India has 560 million internet users – and growing fast.

Over 450 million will be social media users within 2 years.

India is a young population – the median age is just 27.

E-commerce will be over A$100 billion by 2026.

Australia now has a good starting point thanks to Austrade – we have the AUSTRALIAN STORE at Amazon India.

Check it out.

India also has some of the world’s best digital marketing agencies – one leader was SOCIAL WAVELENGTH which has now become Mirum India – top outfit.

I have great respect for Mirum India which is led so well by Sanjay Mehta and Hareesh Tribrewala.

Indian startups are driving growth and change

There are many drivers of India’s economic growth and transformation – but certainly punching above their weight are Indian startups.

There were over 50,000 startups in India in 2018.

India has the third largest startup ecosystem in the world.

The success is partly driven by corporate India (which is providing much of the funding) and by the Indian Government policies.

Bengaluru is in the world’s top 20 startup cities and ranks in the top 5 of the “fastest growing”.

Some of the best known Indian startups include Ola Cabs, Snapdeal (e-commerce), OYO (hotels), Swiggy (food delivery), Big Basket (food e-commerce) and BYJU’s (ed tech).

Watch this space.