Rising middle class in India presents "major opportunities in the future for fruit exporters"
India has been labeled by experts as an opportunity ready to be seized, especially by producers and exporters of fresh products looking to expand their global footprint.
This opportunity arises from its dense population of over 1.4 billion people and a large amount of Gen Zers eager to consume healthy, premium quality products.
However, the challenge lies in how new products can penetrate the Indian population. To try to answer these questions and give a better understanding of the leading trends in the country, Jerry Clode, the CEO & founder of The Solution who has dedicated his career to studying and analyzing Chinese and Indian consumers, made a presentation at this year's Global Avocado Summit.
Clode explained that something "amazing" is happening in India, because "people in major cities are super busy, but at the same time they really worry about health."
However, similarly to what happens in China, consumers want to connect back to the point of production, which is why he recommends brands be as differentiated as they can, so that "any other option for the consumer would be considered a compromise, or just wouldn't be as good as the brand created."
Targeting specific segments of the population
According to Clode, an important segment of the Indian population is the middle class, consumers who consider buying produce at a higher price point and buy consistently.
He said in India, there is a significant amount of the population entering what he calls the "consumer class."
"While China is more advanced, India most certainly will become a major opportunity in the future with a consolidated middle class," Clode said.
He added that a route between the Port of Chancay in Peru connecting to Shanghai and later Mumbai could be an excellent option not only for Peruvian fruit but also for other South American origins.
"The younger generations in India are the first ones consuming international products, but they need brands as a form of navigation to understand what is good, bad, or different to make informed decisions," Clode said.
Young consumers in India don't have much international experience, so they need guidance to access new food categories, according to Clode.
Understanding Indian consumers through sports
The national sport in India is cricket, run by the Indian Premiere League (IPL), which is the fifth-biggest sports league in the world, only going on for five weeks a year.
Clode explained that by spending time with families at the games, he was able to see how the Indian middle class is forming.
"That is the sweet spot where produce can position itself, helping consumers in India realize their goal of being middle class," Clode said.
He said, for example, that in India there are "amazing street food plates that are prepared with avocados, which is a great way to teach consumers how to bring avocados into their home."
Clode pointed out that many Australian and New Zealand brands are targeting the IPL to promote their brands because of the attention it gets in the country.
A return to natural foods
In India, one of the key things that is happening is a return to natural foods, leaving aside supplements and looking for better nutrition.
"In India, better nutrition is something that people worry about, because of the alarming amount of diabetes in the population," Clode said. "India has become the home of a modern epidemic of diabetes, so people are deciding for themselves and their families to ensure better health outcomes."
Clode explained that there is a new wave of people creating companies that create natural foods for kids.
Additionally, articles in important magazines are also pushing middle-class consumers to eat healthier and promoting the consumption of avocados, posing them as a superfood.
"Parents are also very concerned about the high levels of pollution in many Indian cities affecting their kids, so they try to compensate by investing in healthy food, such as avocado," Clode explained.
Communication with consumers in India
Clode explained that in India, the population is not as concentrated in big cities as in China, so communication with consumers in India is more likely to be digital because they are not so concentrated in retail spaces.
"One of the major changes in India recently has been a movement to mobile payment apps, which has revolutionized the Indian economy," he explained.
However, he says that even though there are many new brands entering the market, they still lack a formal branded presence.
"If we are unable to develop brands, we are simply in a season-to-season mode waiting for something to happen, but by investing in brands we can create sustainable profit, with a clear presence in the market," he said.
Simple trading, he said is not enough to make an impact in India.
Keys to selling products in India
He added that one of the important things to keep in mind is, what is the contribution of a product to the market, and how can it make young families happier.
"Focus on how you can make things more fun, more healthy, and how to introduce the benefits of your products to the health of people," he said.
Having consumers know about a certain product all year round is also an important point he highlighted, not just when it becomes available if it is a seasonal product like fruits.
Additionally, consumers must know the people behind the product, knowing where it comes from, who is growing or producing it, and how they are arriving at the market.
"Indians should be able to say, 'This is the best place where this product could come from, produced by the people who know how to do it'," Clode said.
Additionally, Clode recommended entering the market in a segmented way, ideally city by city, because it is easier to picture the consumer, map out logistics, and figure out specific targets.
"Think of your product as a part of the families that buy it, defining how to establish a clear role or relevance in the household," he concluded.