According to Carolina Vasquez, a former business associate in India who returned from that country in February of this year, selling quality products at a good price while seeking partners to establish long-term relationships, which implies being concerned about the local reality, educating and training people, are key factors to enter the Indian market.
Vasquez was one of the speakers present at the New Markets for the Chilean Fruit seminar, which delved into the commercial opportunities that the Chilean fruit industry has in India, Southeast Asia, and the Middle East.
The event was organized by the Produce Marketing Association (PMA), which represents companies from all segments of the global fruit and vegetable chain - and which is represented in Chile by Andrés Rodríguez. It was also attended by Salvador Bonilla, the Chief of the Asia Department of ProChile, and Carlos Salas, commercial attaché in Dubai.
Vasquez stressed that it was important for Indians to feel that Chilean exporters (or exporters from any country) are interested in helping make the country grow when they arrive in India, for example, by training people. "They appreciate it and it helps generate the relationships that the Indians are looking for. It is also good to convey that you can create new jobs, contributing to employment." The agricultural sector accounts for 50% of employment in India. 67% of the population lives in rural areas, therefore, it is key to contribute in this sense.
As an example, she pointed out that a Chilean vineyard had helped in the service, packing, research and development of a local vineyard in India, which allowed them to establish lasting relationships in the area.
Regarding the characteristics of consumers in India, it should first be noted that they are very sensitive to prices. In that sense, it is convenient to market the products in fair formats (which are older, visited by multitudes, and achieve million-dollar sales) as well as newer one formats, such as supermarkets. Another characteristic is that consumers there are very attached to traditions, including flavors and foods.
Traditions are very strong among people who are 45 years or older. However, she said, there is a very large young population that 35 years or younger that spends much time on the Internet, or have traveled abroad to study, who want to have products and services they found outside the country.
Strong markets as a whole
In turn, Salvador Bonilla highlighted the powerful market of Southeast Asia, composed of 10 countries, 6 of which have free trade agreements with Chile. As a whole, they have a GDP of US $ 2.922 billion, which accounts for 3% of the world's GDP. Chile does 2.3% of all its trade with this area.
He highlighted the opportunities there are in Indonesia (the most populated country in the area), with which the country will enforce a trade agreement that will eliminate tariffs on relevant products, such as table grapes, on August 12 of this year. The most important business opportunities in this country - which has the most Muslims in the world - are for fresh fruit, dehydrated fruit, and nuts, among others.
"We are looking to stimulate trade with this area, which is said to be very open to trade. However, there are still tariff and para-tariff barriers, as is the case of Vietnam and Thailand," he said at the PMA event.
Finally, Carlos Salas, the commercial attache in Dubai, said that, even though Dubai was known as a place of great luxuries and super-players, they do not pay surcharges. "People in this area are as sensitive to prices as in India, and you have to fight to have them."
The key countries in the Middle East, he said, are Saudi Arabia (30 million inhabitants) and the UAE (10 million), because of their population, location, per capita income, and high consumption of fresh fruit, where consumers prefer apples the most, but also like grapes, kiwis, and pears. The area has a very young population as 54% of the people there are under 30 years old. The area in general, he said, has a very advanced and modern logistics, and a well organized retail market.
"Another relevant issue is the changes in their consumption habits, as they are interested in having a healthy diet, eating organic products, and ready to eat products, as more women are entering the workforce. Within these trends, fresh products have a very good prospect in Saudi Arabia, UAE, Kuwait, and Egypt, which together account for 2% of the global market for fresh products," Salas said.