Indian companies to get worldwide enterprise alternatives value USD39 bn resulting from digitalization: Takeaways from Google- KPMG examine
Overview of export alternatives for Indian companies
Google India and KPMG lately launched a report titled ‘Indian Manufacturers Going International: A USD39 billion alternative’. The report has highlighted the rising enterprise alternatives for Indian companies in worldwide markets throughout key sectors.
Journey, media, leisure, SaaS (software program as a service), shopper manufacturers and actual property are the important thing verticals, urged by the examine that supply a possible of USD 39 billion value of export alternatives for Indian companies.
All due to digitization! The report states that digital affect is rising on shoppers, worldwide and digital medium is gaining prominence as a key gross sales and advertising channel for cross border e-commerce commerce which is anticipated to develop at a CAGR of 25 % to roughly USD1.5 tn in 2022.
Key components driving progress in worldwide cross-border e-commerce
Shifting composition and route of India’s overseas commerce
There was a major shift in India’s place in international commerce, it’s evolving each in product combine and vacation spot markets. At this time, Indian exporters are more and more specializing in engineering merchandise, prescribed drugs and technology-based value-added merchandise, versus the standard exports like gems, treasured metals and mineral fuels.
Furthermore, India’s export locations have additionally grow to be extra diversified – the highest 20 locations account for roughly two-thirds of complete Indian export, with the US being the highest vacation spot for export items from India. Thus, Indian manufacturers must reinvent their worldwide focus i.e. they need to deal with excessive progress markets, whereas leveraging their competencies by:
- Establishing an omni-channel presence,
- Adopting a world digital advertising technique,
- Incorporating technology-driven insights in gross sales and advertising, and
- Specializing in mobile-first platforms.
Indian firms are seeing growing nations as profitable export locations, as an alternative of established economies.
Right here’s a complete overview of key sectors that supply fast alternatives to the digital companies in India.
5 key worthwhile companies in India with excessive potential worldwide alternatives in 2017-2022
1. Key areas for Indian journey suppliers
In accordance with Google -KPMG report, the journey trade is anticipated to develop at a CAGR of 18% to USD 3.1 bn by 2022. Asia-Pacific and Center East are predicted to be the broad focus markets whereas UAE, Indonesia being the excessive potential markets for Indian On-line Journey Company (OTA) service suppliers. Journey suppliers ought to focus on key rising markets globally by way of digital channels to draw passengers.
First-time fliers from rising markets (similar to Mexico, Turkey, and many others.) are a profitable buyer section. Medical tourism market in India is prone to develop by 3 occasions within the subsequent 5 years and Latin America, South East Asia and Japanese Europe are focus geographies for Indian OTAs globally.
Worldwide traveler influx into India can be anticipated to develop to 12.8 million by 2022 and lodging spends by worldwide vacationers in India to develop at roughly 14 %.
2. Key areas for Indian SaaS suppliers
The international SMB SaaS section is anticipated to develop at a CAGR of 36 per cent over the forecast interval (2017-22). Key progress drivers enabling progress of Indian SaaS market are availability of low value expertise pool, ecosystem readiness, capabilities in cellular product improvement and rising demand for SaaS. On this rising Indian SaaS market, communication instruments, file sharing and buyer engagement are the important thing SMB SaaS segments.
3. Key areas for Indian media and leisure firms
The market dimension of Media and leisure market in India is anticipated to succeed in USD43 bn by 2022 from USD22 bn in 2017. Media and leisure market contains audio leisure; broadband, video leisure; books, magazines, newspapers; and different publishing, promoting and gaming platforms. Client spending on this market is anticipated to develop at a CAGR of roughly 5 per cent between 2017-2022.
South East Asia, Malaysia and Philippines are the profitable markets providing new alternatives for the music gamers, whereas NRI (Non-resident Indian) markets just like the US, UK, UAE and cellular first markets like Brazil are the excessive potential video markets. For gaming, profitable cellular gaming markets are Indonesia, Philippines and East Europe.
Alternative areas which Indian media and leisure firms ought to focus in worldwide markets embody mobile-first, domestically consumable content material, progressive cost modes and buyer engagement initiatives and merchandising &IP/licensing.
4. Key areas for Indian actual property builders
The gross sales alternative for Indian actual property builders from NRI clients is predicted to develop at a CAGR of 17 %, with NRI clients being the first supply of superior long-term returns for realtors. UAE (20 per cent), the U.S. (18 per cent), U.Ok. (7 per cent) and Canada (6 per cent) are the important thing supply nations for NRI funding.
Indian actual property builders may faucet into the NRI and HNI (Excessive internet value particular person) buyer base by specializing in key areas – one cease options for NRI actual property wants, devoted NRI portals with a deal with model constructing, focused digital advertising campaigns and offline property launch occasions, enhanced person expertise by way of digital walkthroughs and drone-based views.
5. Key areas for Indian shopper manufacturers
Client model market in chosen retail verticals is anticipated to develop to USD 2.64 billion by 2022 at CAGR of 12%. Asia-Pacific is the quickest rising attire and shopper durables area, whereas China, Vietnam and Indonesia are quickly rising jewellery markets. Rising on-line retail penetration and demand for branded merchandise are driving markets globally. Low-cost manufacturing capabilities throughout the worth chain will allow Indian manufacturers to supply native however area of interest consumable merchandise.
So, for Indian companies, it’s time to seize the chance beneficial properties from the shifting digital panorama.
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