By 2022 digitisation will unlock a potential $39-billion worth of export opportunities for Indian businesses in select verticals, up from $16 billion in 2017, according to a report from Google and KPMG.
The report, titled ‘Indian Brands Going Global: A $39 billion opportunity’, outlines that travel, media and entertainment, SaaS, consumer brands and real estate are the key verticals with high-potential international opportunities.
The report says Asia-Pacific is one of the most attractive regions for expansion by Indian players, with China, Malaysia and Indonesia being key target countries. Digitally matured geographies such as the US and UK can also be tapped through digital channels.
Shalini Girish, Director-Marketing Solutions, Google India, said: “Rising global connectivity is opening up new opportunities for businesses to expand internationally. This growth is led by emerging economies, driven by adoption of mobile phones; this combination is driving a 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 GoogleMarket Finder tool, that can help businesses overcome the barriers when they want to expand internationally.”
Sharing insights on how Indian businesses can tap into different geographies for international expansion, Sreedhar Prasad, Partner and Head, Consumer Markets & Internet Business Advisory, KPMG India said, “Geographically, the share of developing economies in global trade is on the rise. As per the report, developing economies now account for 41 per cent of global merchandise trade and 36 per cent 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.”
For the Indian online travel, the report predicts that Asia-Pacific and West Asia are the broad focus markets, with UAE and Indonesia being very high potential markets. The industry is predicted to grow at a CAGR of 18 per cent to $3.1 billion by 2022, from $1.37 billion in 2017, driven by online sales opportunities. International traveller inflow into India will grow to 12.8 million by 2022 and accommodation spends by international tourists to India is expected to grow at approximately 14 per cent.
NRI markets like the US, UK, UAE and mobile-first 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 per cent to $3.46 billion by 2022 from $0.71 billion in 2017.
Growing SaaS adoption by SMB customers in emerging markets offers new opportunities for Indian SaaS players. Global SMB SaaS segment is expected to grow at CAGR of 36 per cent over 2017 by 2022.
An untapped market opportunity exists in vertical-focussed SaaS as well as Hybrid SaaS solutions and cloud-first digital transformations are gaining prominence globally, offering a robust business opportunity to Indian players. Indian SaaS players’ revenue is expected to grow from $1.1 billion in 2017 to $4.4 billion by 2022 at a CAGR of 32 per cent.