Owing to the rising digitization, upsurge in market populations, and globalization of products, brands are no longer confined to a particular nation or region. All thanks to the penetration of the internet, our Desi brands are making much noise across the Asian market. Recently, Indian-origin brands are giving tough completion to China, which holds the reputation of being a premium brand leader occupying the nooks and corners of the Asian Market. Addressing the present gaps and the demands of the Asian customers prolifically, these iconic brands have not only created a niche for themselves across the Asian Market but are giving other brands a run for their money. Apart from that, PM Narendra Modi’s innovative initiatives like ‘Make in India’ and ‘Atmanirbhar Bharat’ are coxswaining the journey of Indian brands overseas, simultaneously opening new ways for Indian Brands to Win in the Market. Some products can be distinctively manufactured and supplied by India, such as spices, Ayurveda products, tea, sweets, textiles, and so on. Brands like Amul, MDH Masala, Gits, Tata Tea, Haldiram, Dabur, Patanjali, and Himalaya have not only been extremely popular across the Asian Markets but are also widely sought after in Europe and the US. Receiving just as much love abroad, especially in Asia; as they have in their homeland, these brands have made India proud of being their breeding ground.
This article focuses on some of the most prolific Indian brands in the Asian market, which are currently ruling the Asian market by the virtue of their exclusiveness, customer-centric features, and novelty.
TATA Motors
An Indian multinational automotive manufacturing company that produces passenger cars, trucks, buses, sports cars, and military vehicles, TATA Motors has a dedicated customer base across Asian Market. Tata Motors derives more than 80% of its overall revenue from its subsidiary brand Jaguar Land Rover (JLR) which considers China as one of its key markets. According to a recent report published in Mint, Tata Motors ascended profitable heights in the March 2021 quarter, as a recovery in Chinese demand raised sales of the automaker’s luxury sports cars and SUVs. Sales of the company turned out to be more than double in China, even after the pandemic and the numbers were certainly encouraging with sales rising both a year on year as well as quarter on quarter basis. According to sources, Tata Motors has partnered with a Chinese company called Chery Automobiles for the manufacturing of JLR cars in China. Through this amalgamation, Tata Motors will try to expand its presence across the Asian market.
VIP Industries
Regarded as India's largest manufacturer of luggage and travel accessories, VIP Industries is extremely popular in the Asian market and is dependent on China for around 50% of its manufacturing. As one of Asia’s leading sellers/manufacturers of various types of luggage, backpacks, and handbags, VIP has a range of leading brands, positioned across the entire price range, suitable for customers from different financial backgrounds. Earlier, a major part of VIP’s revenue was sourced predominantly from China, but it was also exposing the company to geographical concentration risk and forex risk.
To decrease the dependence on Chinese imports, VIP Industries plans to reduce the supplier exposure from China to about 25% from 88%, majorly through backward integration and streamlining other supplier options. Owing to the lower labor costs in Bangladesh, VIP Industries is ramping up its operations in Bangladesh, with the notion to lessen its direct imports from China and develop its products.
Dilip Piramal, Chairman, VIP Industries, has also stated that reduced dependence on China and an upsurge in domestic manufacturing will profit the company at a time when China is majorly overcoming the coronavirus outbreak. He further added, “For now, we are happy to inform you that our manufacturing dependence on China has reduced to some extent, and currently, we are only about 50% dependent on China. Our manufacturing has increased and we see it as an opportunity to expand our presence across the Asian Market.”
Voltas
An Indian multinational home appliances company specializing in air conditioning and cooling technology, Voltas was incorporated in 1954 as a collaboration between Tata Sons and Volkart Brothers. Apart from a dedicated client base across all of Asia, Voltas has the highest dependency on China for its compressors and controllers. According to some reports, the company is currently planning to initiate a joint venture with Chinese players for manufacturing some of its important components as the Asian market is expected to become more cost-competitive in the upcoming days.
Patanjali
Patanjali brand started exploring the Asian market after the Chinese government offered the firm 10,000-acre land along with monetary support to begin operations. Currently exporting its products to East Asian countries like China, Myanmar, Bangladesh, and others, Patanjali has captured the East Asian market by competing on price and quality and emerged as a global Ayurveda brand. According to some business experts, though Chinese people are fond of traditional things or products, they tend to prefer western companies for FMCG products. But Ramdev has been unswervingly keen on his business expansion across the Asian subcontinent. He has been frequently vocal across various public platforms about how India could improve its ties with China through yoga and Ayurveda. Patanjali also owns production units in Assam to cater to the northeastern part of India, along with Bhutan which is India’s neighbor. Patanjali also has a production partner in our neighboring country Nepal from whom they import some of their medicinal herbs which are exclusively found in Nepal.
Though the tastes and preferences of Asian consumers are not much different from those of Indian consumers, many Indian brands are struggling to establish themselves across the competitive Asian market. One of the major reasons behind this scenario is heavy completion from China. For a very long period, China was regarded as the sole ruler of the Asian market and one of the premium leaders in the field of manufacturing and distribution. As tables have turned after the Pandemic, Indian brands have started demonstrating an up-surging growth. All thanks to initiatives like ‘Make in India’ and ‘Atmanirbhar Bharat’, India is gradually gearing up to rule the hearts of Asian customers.