A market with almost 250 million consumers waiting to be won over by Spanish wines, which is to be analyzed by the expert Vincent Fernandes
The international journalist Vincent Fernandes will be imparting the lecture "India: Market Opportunities and Barriers to Entry", on the upcoming May 14th, activity organized by the Chamber of Commerce, Industry and Services of Ciudad Real and framed within the program of activities on Foreign Trade and Economy that is coordinated by the National Trade Fair on Wine set to take place from May 12th to the 14th at the Ciudad Real Trade Fair Grounds.
Vincent Fernandes, who is also Editor in Chief of Sap Media Worldwide; editor of the magazine Ambrosia, known as the "voice of the industry" and organizer of the most renown trade fair on wines and spirits of this country, Indspirit, will be explaining the peculiar situation that wineries interested in opening up the market in India are confronted with.
This country was worthy of particular attention due to the fact that there is a growing demand for wines. India is different with regards to other markets in the area because this type of beverage is a very recent phenomenon here -since 2004- in that pertaining to their preferences for consumption, that is in comparison with countries such as Japan, Korea, Singapore, China and other Muslim countries. Another of the peculiarities resides in the habits of the population. The people of India enjoy alcoholic beverages before a meal, but not during a meal as in European and other mature markets. This is where we encounter the first cultural barriers to entry and the need to gradually modify this mentality. "Likewise the tax and regulatory structures, such as the FSSAI –Food Safety and Standards Authority of India- (safety and food regulation in India) are highly complex, hindering sales as if we were dealing with 29 different countries", Fernandes sustains.
On the other hand India is an emerging country, as can be seen in cities such as Delhi, Bombay, Bangalore and the State of Goa. "While per capita consumption of wine only stands at 10 ml, there is a young middle class population of around 250 million people who can afford to buy wine, and that is precisely where we may find the big driver of sales" Fernandes affirms. This can also be confirmed by the data, as according to the 2014 ISWR Report, importing of Spanish wine has grown from 1,500 cases to 10,000 cases as of the year 2004, with a compound annual growth rate (CAGR) of 35,8% in 2013.
Imports from different countries to India follow this order, with Australia, France, Chile, Italy, United States and South Africa leading in sales of wine in India. On the other end of the spectrum we have Spain, Argentina and New Zealand. As an expert in the retail market and on HORECA in alcoholic beverages in India, Vincent Fernandes hopes that his visit to FENAVIN will awaken the interest of Spanish wineries in this market that is about to explode, with a slow demand that is however on the increase. He likewise highlights the role of the different designations of origin and the competent institutions to make the necessary joint efforts in commercialization in benefit of their wines and of the Spain brand.