|
| |
|
| France in India 2.0 |
| Rajiv Singhal |
| It is true that the regulatory framework in India stifled and impeded the growth of the market for wine in India. But, in a span of 15 years, the market has grown from insignificant volumes to about 400,000 cases of imported wine (alongside a million-plus cases of Indian wine). And this, in absolute terms, is a reasonable sized play to justify prospection. |
| The French took to develop this market early - they accepted our advice to take the lead and play a pioneering role in educating a nascent market about wine. We were mandated to build the notoriety of their wines. Sadly, the decision to exit the Indian market was taken about a decade ago, at a time when French wine was dominating the market and its notoriety was rising as a result of the extensive campaigns and strategic interventions. Of course, other countries seized the opportunity to fill this vacuum - the French, simply, stopped any activity. |
| |
 |
Ambassador of France to India, H.E. Alexandre Ziegler with Thibaut Fabre of Business France |
| |
| The abysmal market share of French wine caught the attention of the incoming Ambassador of France to India, H.E. Alexandre Ziegler. In 2014-15, the market share of all French wine was 25% (on volume according to available industry data). And if Champagne, whose promotion I have been responsible for since 2007-08, was taken out of the picture, the market share fell to 16%! France had ceded territory to Australia (29%). |
| H.E. Ziegler showed keen interest to make some amends and took my suggestion to present the potential of India to French producers and the need to do something. We both headed to Bordeaux on the occasion of the leading international wine show, Vinexpo. And were joined by Isabelle de Lomenie at a morning interaction with French wine producers hosted by Thibaut Fabre of Business France at their booth. |
| |
 |
The presentation |
| |
| In his presentation, Ambassador Ziegler highlighted the opportunity to take advantage of a growing market. The market for wine in India grew at 22% between 2014-16. Focussing on market share by value, he showed France drop from 51% (2012) to a more respectable 31% (2016). He also urged companies to return to take the rightful place in the market and explained that the potential that was to be tapped was driven by: |
• |
A fast growing economy |
• |
Young population (median age of 27 years and 70% below 36 years) |
• |
Middle class of 200 million consumes more and more |
• |
70 million rich (more than the population of France) |
• |
150 million people will attain the legal drinking age in 5 years |
• |
Increased demand for international products |
• |
Lifetime consumption of the millennials is 13x (about $200,000) of their parents |
|
| Ambassador Ziegler shared the IWSR finding that wine is elegant, healthy, socially acceptable and popular with women - which Isabelle shared as her experience at the Accor Hotels in India. |
| I advised producers that the potential of India as a market is not in question - it is not a matter of 'if' but 'when'! Asked to put a time on 'when', I said that it would be pure speculation. But, I also emphasised that the Indian market is a level-playing field - no individual country had succeeded in wrangling special concessions from the Indian government - so there was no reason for the French not to win back what they had lost! |
| Rajiv Singhal has been a regular visitor at Vinexpo since 2005. |
|
|
|
