Asia as a whole is becoming increasingly important to UK trade. But India is a particularly exciting market for the UK businesses looking for new export markets, due to its sheer size and growth forecasts.
This is why it’s one to watch:
- 2019 ONS figures show UK exports to India increased 19% year on year.
- India’s GDP growth forecast for 2019 is 7.3%, making it one of the fastest growing economies in the world.
- Increasing salaries mean the region has a burgeoning middle class, with an increasingly disposable income.
- According to The Economist, HSBC recently stated the size of the middle class in India has reached 300 million, a figure it thinks will rise to 550 million by 2025.
- The demand for products and brands within India is at an all-time high and this is set to continue for the foreseeable future.
- Research from Barclays Corporate Banking found that 64% of consumers in India were prepared to pay more for goods made in the UK.
It’s good to know:
- To successfully launch a brand in India, ideally a company would first launch around the Indian market, in places like Singapore, other ASEAN countries or UAE. Establishing a brand in these destinations initially will ease the path into India. That way the target segment of consumers will already have formed an understanding of the brand, which will likely pique demand.
- India is a multi-religion country which has a population of around 1.4 billion people. Cultural customs vary hugely by region and it’s essential to have local advisors on hand to smooth the process and minimise costly mistakes.
- Indian consumers have become more value sensitive than price sensitive. If they feel that a particular product offers them more value, even if the price is high, they are willing to buy the product.
- Indian consumers strictly follow their culture, tradition, and values. As a result, foreign companies are forced to give an ‘Indian touch’ to their product and marketing communication in order to succeed in India.
- Indian consumers have shown another major change in their buying behaviour: they don’t just want the product to be available, they also want an enjoyable buying experience. They expect a good level of customer service and ambience. This has led to the growth of shopping malls, where shops, entertainment and food courts are all available under one roof.
Interested in exporting to India? Get in touch firstname.lastname@example.org and see how we could help.