Buyer Sourcing Strategy in Indian Market

The advantage of low price made in China is gradually lost. How will Chinese suppliers seek survival and development? How to formulate an effective promotion strategy? How to make the order profitable, and where is the future development direction of export enterprises? Future Group Mr. Prashant Patil, General Manager of Purchasing, explained the Indian market and buyer's purchasing strategies in detail at the Wenzhou Station of "Zhisheng Future Export Forum".

Mr. Prashant Patil joined Future Group in 2008 and is currently responsible for retail purchasing of household products And specializing in the development of new products for household products, he is currently the General Manager of Purchasing of Future Group. He has more than 20 years of experience in different fields of the Indian business community, and has a deep understanding of the Indian market, traders and consumers.

Prashant Patil: India Now The total annual economic consumption reaches 450 billion US dollars. As mentioned by your Prime Minister during his recent visit to India, India has always been one of the fastest growing consumer goods markets. Unlike in the 1980s, India is now a A very fast-growing consumer goods market, and Indians are increasingly pursuing fashion.

India has a population of more than 50% of the total population under the age of 25. Like China, India is a very large country, and India is a very large country. A diverse country, because there are people of different nationalities living together, in India we have people of various beliefs, and various castes and communities. Nowadays, many of the toys that our Indian children play with are Coming from China, China is the biggest importer of India.

Doing business with Indians is a very good thing. Now I see English subtitles, you can see many different cities in China, not in India , there are also many different states, in China you have Cantonese, you have Shanghainese, the same in India we have different languages. In India we have different languages, different religions, different castes and different communities, In India we have many different festivals and celebrations, we also have new year, we also say happy new year, we also give red envelopes when the new year says happy new year, do you know where it comes from? Gifts come from China, if I want to give a gift It could be an earring, it could be some jewelry.

We have different programs, which means basically there is a festival every week, so if there is a festival every week, you can Imagine how much people need to buy. And one of the things in India is that there is no one-child policy in India, so Indians can have two or three children, so I can celebrate my three children every year Three birthdays, so I can buy new clothes three times a year, and the market will be busier.

So, I think you should pay more attention to the market in India, which is what our boss talked about, how the future group is formed , so the future group is only to meet the various needs of the Indian consumer market , The company is involved in many fields, including retail, consumer finance, including media, including retail real estate development, including brands, and logistics and other fields. So our boss wants every Indian to buy from us, so that's why we have multiple forms of retail network, we are spending more than 200 million a year.

So, allow me to introduce a future group, we have 30,000 employees, we have been in 126 cities and town centres in India, and our group has a turnover of $3 billion in 2012. Our Pantaloon Retail and Future Capital Holdings are listed on the Indian Stock Exchange.

Our company is based on retail business. As I mentioned just now, we have 200 million consumers who come to our company to buy retail products every year, so these are some of our basic businesses, such as retail and Corporate alliances, such as investment advisors and consumer finance, life and non-life insurance, we also have future brands and future media. Our philosophy is that we can communicate with customers. We hope that through our brand and through our media, we can maintain communication with customers, so customers can always remember us and buy things from us together.

We also have our own logistics company so we can deliver fresh items to our customers on time. We also have another brand called "Entrepreneurial Enterprise Development", which is actually created for our subsequent development. If you have a relatively large order, we can have a better financial follow-up support. So these are some of our retail storefronts. Our retail brands include Central, Pantaloons, Big Bazaar, and Food Bazaar. These are some of our more mature retail storefronts. The total area of these stores has reached 10 million square feet. Among them, Pantaloons and Central are more suitable for consumers' fashion life needs, while Big Bazaar and Brand Factory are oriented towards consumer price groups.

This is our Central stores, Central stores is our seamless shopping mall that can meet the various purchasing needs of urban residents, you may not see it very clearly here, but we have a PTR cinema here , in the center we can provide a series of other leisure and entertainment activities such as movies. Our idea is that people can come here to shop, eat, and then celebrate, our idea is that people can come here, on festivals or weekends, to be one-stop shopping here, buy everything here A variety of products, such as baby food, footwear, accessories and other products.

There is another storefront called Pantaloons, and we have 65 storefronts. Pantaloons means trousers, Pantaloons is another expression of trousers, so here we can sell a wide variety of clothing including casual fashion for men, women and children, traditional wear, formal wear, party wear and sportswear, men, women And children can buy their own things.

Big Bazaar is another store format. We now have 165 Big Bazaars, where we have a lot of daily necessities and a lot of clothing. You can buy sports goods and food here. arrive. Here you can see a photo of an Indian woman, she welcomes you here, this photo shows the target customer group we need to target, so the main shopping group here is housewives, not working women, professional women .

Here we also have a new product called Brand Factory, which is our new storefront format, where we have many fashion brands, such as Levi's, Jeans, Dockers, Adidas, Reebok, and more There is Nike, which can also be found here. At the same time, we have another storefront format called Food Bazaar. We have 198 Food Bazaars. Food Bazaar is an ordinary large supermarket chain storefront. In India, our shopping philosophy is to see, touch and feel, Indian customers are very price conscious and quality conscious, they want to see the products, and they want to see each product before they decide to buy it.

At the same time, we also have household goods retailing. Household goods retailing started in 2006. We have many different brands, such as Home Town. In Home Town, it provides various services related to home building materials and decoration products. EZone offers a variety of stylish and sophisticated electronic products and appliances, and Collection I offers a variety of exquisite home accessories and furniture. Electronic Bazaar and Furniture Bazaar offer more economical products. We also have future bazaar.

So here is another picture of Home Town, we have over 22 stores like this, Home Town will be more than 100 square feet of floor space, and then it's like a mini home, where we can Buy all kinds of furniture and electronic products, sofas, tables, beds and all kinds of furniture.

The main products sold in the e zone are electronic products, so we buy iphones and audio equipment for music. Our philosophy is that if a person comes to buy iphones, they will also buy other clothes, so in e zone You can buy a lot of surrounding brands in the zone. Here is another photo of our Home Town Dining Room, you can see some dining tables, some cheaper ones, one table with four chairs, 300 RMB.

Future Group also has some brand new retail stores called Futurebazaar.com, Futurebazaar.com Taobao, and Planet Sports, we also have fashion, Depot is a fashion chain that sells books and music, Fairprice is for With cheap and good products, so it's more like a grocery store. This is a photo from Futurebazaar.com, so you can see different products here, you can see a phone, a camera, it's no longer a problem for people in India to go online, people love to shop online. And we have also cooperated with Hollywood. She is an Indian star, which is the same as China. People like movie stars, so they will arrange movie stars to come to their stores to attract the attention of customers. So we still have some loyalty programs. For example, if you buy an iPhone in e zone, you can get a reduced price or a discount when you buy something in the iPhone next time.

We also have some well-known retail partners. For example Staples Inc, Lee Cooper, Axiom. This is another photo, Food hall, mainly sells international food, so these are also some imported food. So our concept is to attract customers to our store. Please take a look. This is called World market. This is a new organization, a new business model created by Future group, which is similar to a market.

I can't go into details, but our concept is that there are 300 stores, and in these 300 stores, our concept is to attract our customers to our World market, and then in the Inside for my further shopping. We have opened branches in Bangalore and three other cities, you can buy other products here, you can also buy our own products, it's like our deal with traders, you can do big business here Bulk commodity trading, so this is another way to sell our products, to traders.

We want to work with manufacturers, so what you can see is that consumers in India are more aware of this dynamic of global consumer goods because they are very concerned about the cost performance of their products, so they want to come at a good price Purchase the latest products. Moreover, Future Group's retail network covers the entire territory of India, so the products we purchase should be able to meet different cultural needs, different living backgrounds, and different income situations.

I would like to give you some advice. The first one is the most important one. One US dollar is about 6 RMB, and 1 RMB can be exchanged for about 9 Indian rupees. Therefore, Indians spend their money very consciously and very carefully. And there are tariffs, so the market in India is very large, but in view of the tax rate of RMB and Indian rupee, we are very careful about spending money.

So you can read a few suggestions below and ask me if you have any questions. My suggestion is to go to India more and look at Indian consumers. We are very close to China in India, and you have a lot of bigger customers in India who are asking you to offer lower, lower, lower prices. So how do you bargain, how do you get a good price, if you find real sincere customers, many of you customers.

I suggest that Global Sources should evaluate buyers, screen, just like our supplier this new level, because customers from India are easy to fake, you can't tell who is a big customer, like we are $31 a year Yes, but a lot of people say it themselves. And in addition, I appreciate the special procurement meeting, because it is a closed-door meeting, so suppliers can negotiate with buyers, unlike an open exhibition.