By 2022, digitization will unlock a potential of $39 billion worth of export opportunities for Indian businesses up from $16 billion in 2017.
Highlighting the growth opportunity for Indian businesses in international markets, Google India and KPMG has released a report titled, ‘Indian Brands Going Global: A $39 billion opportunity’. The report outlines that travel, media and entertainment, SaaS, consumer brands and real estate are the key verticals with high potential international opportunities.
The report outlines that Asia-Pacific is one of the most attractive region for expansion by Indian players – with China, Malaysia and Indonesia as key target countries. Digitally mature geographies such as the US and UK are other lucrative geographies which can be tapped through digital channels.
Speaking about the export opportunities for businesses in India, Shalini Girish, Director – Marketing Solutions, Google India said, “This growth is led by emerging economies, driven by adoption of mobile phones; this combination is driving a very rapidly growing cross border mobile eCommerce. There is a huge International growth opportunity for select verticals and we wanted to capture that through this report. We have also introduced a revamped Google Market Finder tool, that can help businesses overcome the barriers when they want to expand internationally.”
High Export Potential Verticals:
Travel: Asia-Pacific and Middle East are the broad focus markets with UAE, Indonesia as very high potential markets The industry is predicted to grow at a CAGR of 18% to $3.1 bn by 2022 from $1.37 bn in 2017. International traveler inflow into India to grow to 12.8 million by 2022 and accommodation spends by international tourists in India is expected to grow at approximately 14 percent.
Media and Entertainment: NRI markets like the US, UK, UAE and mobile firsts markets like Brazil are extremely lucrative for video consumption. In music growing markets like South East Asia, Malaysia and Philippines offer new opportunities for the players. The industry is set to grow at a CAGR of 37% to $3.46 billion by 2022 from a $0.71 bn in 2017.
SaaS: Global SMB Saas segment is expected to grow at CAGR of 36 per cent over 2017-2022. Market opportunity exists in vertical focussed SaaS as well as Hybrid SaaS solutions and cloud first digital transformation for Indian players. Indian SaaS players’ revenue is expected to grow from $1.1 bn in 2017 to $4.4 bn by 2022 at a CAGR of 32%.
Real Estate: The India real estate market offers superior long-term returns, the opportunity for realtors from the NRI customers is expected to grow from $11.5 in 2017 to $25.7 bn in 2022, growing at a CAGR of 17%. Indian real estate developers could tap into the NRI and HNI customer base by leveraging technology and digital platforms.
Consumer Brands: Asia-Pacific is the fastest growing region in apparel and consumer durables. China, Vietnam and Indonesia are rapidly growing jewelry markets. Consumer brand market in select retail verticals is expected to grow from $1.5 bn to $2.64 billion by 2022 at CAGR of 12%.
Source: Google India and KPMG
Sharing insights on how Indian businesses can tap onto different geographies for international expansion, Sreedhar Prasad, Partner and Head, Consumer Markets & Internet Business Advisory, KPMG India said, “As per the report, developing economies now account for ~41% of global merchandise trade and ~36% of global trade of commercial services. This presents a compelling case for Indian Businesses to ‘Look East’ for growth. Regions within APAC like China, Malaysia and Indonesia constitute attractive markets for expansion and with digitisation, Indian companies can look to make significant headway in key sectors.”