India’s rapidly growing economy is attracting foreign brands towards itself. Many foreign brands have been doing business in India for quite some time, and new brands are making efforts to enter the market.
However, reaching their target audience in India requires a significant investment in marketing. Instead of relying on A-list Bollywood celebrities for endorsements, these brands are now turning to new Indian celebrities to attract the country’s youth and rapidly growing consumer market.
What’s Happening?
According to a report by Mint, several international brands are scouting for new Indian celebrities to promote their products. Instead of roping in top Bollywood celebrities, they are using the help of social media influencers to attract Indian youth.
The report suggests that this trend, departing from traditional A-list celebrities, indicates a shift towards faces that can better connect with the younger generation. Shudeep Majumdar, Co-founder of influencer marketing firm Zefmo Media, suggests that global brands also understand that Indian faces resonate better with consumers.
Another reason is that lesser-known celebrities cost brands less compared to A-listers.
Why are Global Brands Attracted to India?
According to Financial Express, analysts suggest that the rapidly growing retail market in India, along with changing consumer preferences and increasing disposable incomes, is pulling foreign brands towards India.
Moreover, big Indian conglomerates like Reliance and Aditya Birla are also eager for partnerships with foreign brands. For instance, Sandro and Maje, from France’s luxury group SMCP, have tied up with Reliance Brands, while France’s Galeries Lafayette has entered into a strategic partnership with Aditya Birla Fashion and Retail, and Foot Locker with Metro Brands.
What Makes Global Brands Successful in India?
Credibility: Global brands quickly gain popularity among Indian consumers due to the high quality of their products.
International Market Support: These brands are prevalent in international markets as well and enjoy recognition worldwide, giving them a global identity that resonates with Indian consumers, who often prefer purchasing products from recognised international brands.
Social Media Marketing: As mentioned earlier, brands are leveraging social media influencers for marketing, reducing their expenses while influencing the purchasing decisions of the younger generation.
These are some reasons why global brands are succeeding in India. Now, let’s look at what this means for investors in the Indian retail sector.
What’s in it for Investors?
Rapidly Growing Market: According to a CBRE report, leasing in the retail sector witnessed a year-on-year growth of 47% last year. India is one of the fastest-growing retail markets globally. With increasing income and digitisation, spending is on the rise, benefiting the retail sector directly.
New Opportunities: Growth in leasing will create new opportunities for investment in real estate, manufacturing, logistics, and other sectors due to the expansion of global brands in India.
What’s Next?
According to IBEF, India’s retail market is set to grow significantly in the coming years. A report by Kearney Research suggests an estimated annual growth rate of 9% in the retail market between 2019 and 2030. This means that the market, worth $779 billion in 2019, is expected to surpass $1407 billion by 2026 and exceed $1.8 trillion by 2030.
That’s it for today. We hope you’ve found this article informative. Remember to spread the word among your friends. Until we meet again, stay curious!
*The article is for information purposes only. This is not an investment advice.
*Disclaimer: Teji Mandi Disclaimer
