NexusNovus provides services in Consultancy, Trade Missions and Business Representation to European firms that are eager to enter or develop the Indian market. In addition to that, we also trade in FMCG, Healthcare, and Fire and Safety products. Located strategically in Bangalore, NexusNovus specializes in working with small to medium sized businesses. Five years of hands-on experience in India has empowered us to build an enviable track record. Our Indo-European identity, nation-wide network and strong employee-base makes us the ideal partner for doing business in India.

1. Entry into the Indian
Retail Market
How to get your
products on the shelves

2. “For in Asia and around the
world, India is not simply
emerging; India has already
emerged.”
- President Barack Obama

3. About India
8% GDP growth rate
Population: 1.2 billion
22 official languages

4. Drivers of Growth
 2nd worldwide FDI
destination
 Rising disposable incomes
 Availability of qualified staff
 Strong & stable financial
market
 Favorable demographic
trends

5. World’s…
 Cheapest car, TATA
Nano
 Largest milk producer
 Largest tea producer
 Lowest retail space per
capita at 0.19 m2
 Biggest gold market
 Fastest movie producer

6. Five P’s of India
Price
Patience Placement
Success
Partner Promotion

7. The new Indian
upper-middle
class
Young Indian couple /
Modern Trade Outlet
Bangalore

8. India’s Upper-Middleclass
 80 million upper /
upper middle class 600
people, 2010 500
McKinsey, growing to
400
550 million by 2025
 Disposable income 300
high 200
 Identify themselves 100
with international 0
consumer 2010 2025

9. 2010 Snapshot
Indian Upper-Middle German Population :
Class: 80 million 80 million

10. 2025 Outlook
Indian Upper-Middle Population of the EU
Class: 550 million 500 million

11. 2050 Consumption

12. Booming India
“The global meltdown of 2008 hardly had any effect on
India, while the entire world was reeling under the
recession effect. It was India which presented itself as a
shining example to other nations, on ways to come out
of crises successfully and prosper simultaneously.”
- fxnewsindia

13. Retail explosion
 5th largest retail market globally
 Worth $ 500 billion
 Growth rate >15% per annum
 5% Organized, growing at 35% per annum
 Organized retail is being tipped as one of the biggest
gainers from growing consumerism and rising income

14. Drivers for retail growth
E commerce / Online…
Rise in use of credit/debit…
Real estate boom
One stop shopping
Spurt in urbanisation
Changing lifestyle
Large young population
Growing disposable income
Booming Economy

15. How to enter the booming
Indian retail market
Golden rules for any exporting company

16. The Right Placement
Organized Trade Traditional Trade

17. Types of Retail
Unorganized trade Organized trade
 95% of total retail market  5% of total retail market
 Mix of modern stand  Growing with 35% annually
alone stores and  Leading chains like
traditional stores Spar, Hypercity, Natures
 Traditional store’s Basket growing rapidly
product portfolio is  Broad portfolio of
mostly domestic products, domestic and
 Modern stand alone imported
store’s product portfolio
carries imported ranges
as well

18. Social classes in India
Class Key Facts
Upper-middle  High Disposable income
 Internationally influenced
 Living in the metros
 High willingness to experiment and sufficient budget to buy
imported goods
Middle  Young working people
 Office jobs
 Willingness to experiment, but limited budget to buy
imported goods
 Good future perspective
 Higher income than the parents at young age
Lower  Living in rural areas and poorer parts of the metros
 Getting paid in daily wages
 Working to survive, no disposable income

19. Your customer:
Upper - middle class
2012 2025
7%
Upper- Upper-
middle middle
21% Middle 39% 42% Middle
72% Lower Lower
19%

20. Consumer / Retail
in pictures
Modern Indian men at a
Hennessy Club launch /
Modern Trade Outlet in
Delhi

21. Consumer / Retail
in Pictures
Indian crowd on a night
out / Garuda
Mall, Bangalore

22. Consumer / Retail
in Pictures
Fashionable Indian girls /
Phoenix Mall, Bangalore

23. Consumer / Retail
in Pictures
Bollywood Stars /
Forum Mall, Bangalore

24. Expected changes
Law Impact
GST Removal of compounding effect of non-
interchangeability of service tax and VAT
Local Removal of inter-state “import duties” and
taxes city level “Octroi”
FDI Allowance of majority stake holding in multi-
branded retail (e.g. super markets) resulting in
inflow of much required cash and know-how
WTO Reduction in import duties and customs hassle
expected

25. Exporting to India
How to introduce products successfully?

26. The right product and price
Quality Set MRP right
 Imported = Quality  Indians are price
sensitive reg. their day
 Live up to this to day needs
expectation!  Higher disposable
 Dress your product right income allows to
experiment with
imported products
 No competition with
local brands, but with
other imported
products

27. Customer End-Price build-up
14%
• VAT
2%+5%
• CST
• Octroi
60%
• Margins for importer,
distributor, retailer
45-60%
• Duties
• Clearing
10%
• Transport
• Handling

28. MRP Calculator (approximate)
45% duties 55% duties
Snacks/chips etc Chocolate/mueslis etc
SKU/pallet 750 1500 3000 SKU/pallet 750 1500 3000
€ 0.50 212 162 137 € 0.50 225 172 146
€ 0.75 269 219 193 € 0.75 285 232 206
€ 1.00 325 275 249 € 1.00 345 293 266
How this works
1) Identify your relevant import duties
2) Estimate #SKU/pallet and select your FOB price
3) Define your MRP

29. Price Levels in India
Chocolates: 80 INR / Tropicana: 100 INR / Axe Deo: 150 INR /
Milk: 45 INR / 1 litre 100gr 1 Litre 150ml
Nivea Shaving Foam: Pasta Sauce: 280 INR Local white wine: Smirnoff Vodka: 750
INR 200 / 200ml / 350gr 550 INR / 750ml INR / 1 Litre

30. From our Portfolio
Quickbury regular
Non-Stop: VanDerMeulen Melba Toast: INR Antica Cantina:
INR 180
INR 189 (125gr) 125 (100gr) INR 180 (200gr)
Quickbury Sugarfree Lonka Davelaar Thorntons
INR 245 INR 220 INR 400 INR 740

31. Placement & Promotion
Success of a product is determined by 2 factors:
1. How many points of sale do you have?
2. How many SKU’s per store do you sell?
Increase POS Increase Sales/POS
 Listings (budget)  Sampling & promoting
 Margins to retailers  Brand awareness
 Nationwide distribution  Shelf
network placement, presentation
 Quality products  Quality products
 Attractive price points  Attractive price points

32. Listings for MTO
 MTO charges listing fees Chains Indication/
before placement SKU
 Listing fees are per SKU Spar € 175/-
 Listing fees vary and are HyperCity € 250/-
highest for new suppliers Spencers € 85/-
 Listings depending on Natures Basket € 450/-
perceived product
Nilgiris € 200/-
potential by MTO
Namdharis € 150/-
 Listing procedures take 2-
4 weeks

33. General Trade Outlets
Pro’s of GTO Con’s of GTO
 Many more outlets  Lower sales per store
than MTO for imported products
 No listing fees  Individual supply /
invoicing
 On average lower  Sub-distributor needed
margins
 Irregular in product
 Free in-store portfolio
promotions possible  No sales reports
 Easier influenced by  No temperature
merchandiser control

34. Promotions
Type Cost indication
 Product Visibility
 In-store samplings In store €125/ day
sampling
 Floor stickers
 Posters Floor stickers € 500 / month
 Danglers Posters € 350 / month
 Shelf talkers Danglers € 350 / month
 Expo participations Expo € 450 / weekend
 Social media participation
campaigns Social media As per campaign

35. Market Entry with
NexusNovus
Introduction and expansion

36. NexusNovus
 Enabling Business in India since
2007, headquartered in India
 Professional and pragmatic
partner for SMEs
 Market Entry Services
 Strong nationwide
network, leading to savings in
cost & time
 Experienced team with Indo-
European identity
 Unique portfolio: one-stop-shop

37. NexusNovus Advantage
 European Management, we understand your
needs and expectations
 Nation-wide distribution network including 7
distribution centers
 5 years of experience in retail
 Products placed in 90% of all the modern retail
outlets in India
 Network of merchandisers across all major cities.
 Negotiation skills in the Indian retail market and
understanding of the business culture
 Qualified marketing and product promotion team

38. 4 Steps to Success
 Test
Place products in the shelves of organized and unorganized
retail, promote them, collect consumer feedback and measure the
actual sales results
 Evaluate
Analyze the sales results and consumer feedback and see what
implications this has for your product, your price point, your
marketing strategy and your business development approach
 Plan
Based on the evaluation, plan a detailed strategic approach on
how to grow in the Indian market
 Expand
After a successful test, activate all other major cities in
India, increase the number of activations of MTO’s, GTO’s and
Specialty Stores/Institutions, and support the retail activation with
marketing and promotion activities

39. Test, Promote, Evaluate
Our job
 Shortlisting 5 SKUs with the manufacturer
 Calculating the MRP of the products
 Transport and duty clearance of the 2 pallets
 Coordinating and executing a pilot study in India in
approximately 20 MTO outlets of 3 chains, 10-15 GTO outlets, and
5 Specialty Stores
 Organizing and executing in-store promotion activities and
samplings
 Promoting the products through online media and events
 Providing detailed sales results overview every 2 weeks
 Creating a detailed evaluation report and expansion strategy at
the end of the pilot
 Participating in events
 Bearing all other direct and indirect costs: Domestic transport,
warehousing, personnel, management, shop visits etc.

40. Test, Promote, Evaluate
Your job
 Shortlisting 3-5 SKUs along with
NexusNovus for which the pilot will
be executed
 Supplying approximately 400-500
products per variety, Free of Cost
 Labeling the products as per the
Indian Weight & Measurement
requirements
 Support for activation budget

41. For enquiries:
Contact:
Victor Eveleens
Director I&D
v.eveleens@nexusnovus.com
+91 80 6535 3528