Rapid digitisation opens a $39 bn global opportunity for Indian Brands
If you are a Indian brand in the new digital economy, there is no better time to grow and make money. Rapid digitisation across the world has opened up a $39 billion consumer opportunity for you. As per a recent report by KPMG and Google, international business opportunities for Indian brands are growing at a stupendous pace.
Travel, Media, SaaS, Jewellery, Real Estate, Ed-Tech are the key verticals with high potential international opportunities.
With the rising digital influence on consumers globally, online as a channel for trade is witnessing growth. Global cross border B2C e-commerce is set to rise at 25 per cent CAGR to approximately USD1.5 tn in 2022. Driven by lower prices and brand availability, over one-third of the total global online shopper-base shop from websites outside their home country.
On the technological front, innovations have enabled easier global physical trade of goods. RFID sensors, IoT sensors, enhance cost efficiency and improve global product distribution. A widening range of digitally trade-able goods enable sales across borders with minimal distribution and transportation costs. Emerging economies present an evolved customer base with rising spending power, and thus opportunities exist to address these markets with customised products. Tapping high growth markets with a digital, mobile-first strategy is a key differentiator.
Key regions such as Asia-Pacific constitute attractive markets for expansion – B2C travel and tourism e-commerce market in the region is set to grow at 18 per cent CAGR till 2022, while apparel, jewellery sectors are to see substantial sales growth over online channels. Also emerging markets offer large untapped e-commerce market potential coupled with a fragmented market and rising internet penetration.
Rapidly evolving global business realities offer a level playing field for small and large players alike. At the same time, the digital medium is gaining prominence as a key sales and marketing channel. A multi-pronged international expansion strategy is increasingly being favoured by players – strategic alliances, omni-channel presence, product localisation, digital marketing are some of the competencies required to garner incremental international market share. India’s rising prominence in the global export markets coupled with growing international opportunities offer scope for Indian players to expand internationally in travel, brands, real estate, SaaS, media and entertainment and select other verticals.
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