The Indian food market is a competitive playground, and 38% of the population is vegetarian, so Vietnamese enterprises wishing to sell their products in India need to take these factors into account, according to franchise expert Nguyen Phi Van.
Van was talking at a sales event held by the Business Association of High-Quality Vietnamese Products in Ho Chi Minh City on Thursday aimed at helping companies that use modern tools and technology to conquer the billion-person market.
Van believes that before entering the Indian market, Vietnamese enterprises need to learn more about it. India is the world's most populated country, with 1.44 billion inhabitants. It covers 3.2 million square kilometers, being the world's seventh largest with 400 cities.
The country practices four religions, including Hinduism, Buddhism, Jainism, and Sikhism. It has 186 billionaires, ranking third in the world.
Notes for Vietnamese enterprises
First, India is vast and contains numerous cities. Consumption in large cities differs from that in smaller cities. To enter this market, enterprises must determine what to sell, in which cities, and to whom.
Second, prices in the Indian market are quite competitive. Businesses can introduce products into this market by packaging them in modest quantities. Prices in India are carefully negotiated by enterprises. They will ask how to cut production and logistics costs, therefore, Vietnamese enterprises should prepare for these variables when bargaining.
Third, India is 38% vegetarian, so Vietnamese enterprises should consider the vegetarian community and what to sell. As a result, Vietnamese firms must provide vegetarian cuisine before launching other products.
Forth, India is the world's largest exporter of spices. Indians tend to eat with spices and avoid green vegetables, which are not readily available in India. As a result, if products are brought into this market, the food must suit their tastes. "Two Vietnamese products that I give as gifts every time I go to India are shrimp chips and spring rolls, but their consumption is also low," she remarked.
Fifth, although there is a free trade agreement between Vietnam and India, this does not imply that the tax rate is zero. Some commodities, such as pepper, cashews, and coffee, have taxes ranging from 75% to 45%. As a result, before exporting any commodity, companies must first determine the tax rate. If it is too high, it is probably already produced by factories in India.
And last but not least, Indians use their hands to eat, so if you want to do business with them, you must respect their culture.