Organic marketing structures in the domestic market

A number of Indian companies are aiming to create marketing structures in India itself by developing the retail trade, because demand is growing all the time. 30 % of consumers want to buy organic products and are even prepared to pay 10 % to 20 % more for them, according to the result of a survey of 1,000 consumers in ten cities.

The survey was conducted by Morarka Organic Foods Pvt. Ltd, one of the leading companies in the organic sector, which in addition to its retail trade activities also operates as exporter, caterer and producer of organic food and textiles of organic cotton and silk. Morarka already operates its “Down to Earth” retail concept or supplies shops with products bearing the same label at about 20 locations.

The company now intends to push the expansion of the concept to increase the availability of organic and natural products on the domestic market and satisfy the increasing demand. Morarka has taken the Indian franchise specialist Francorp on board for this purpose. Francorp has been developing a concept for reproducing the “Down to Earth” retail trade model since spring 2012.

Gaurav Marya, Chief Executive Officer of Francorp, emphasizes the high speed of growth in the organic market and expects prospects to remain good. Whereas the conventional trade has to accept annual growth rates of 2 % to 3 %, the organic sector is growing by an average 20 % per year.

The company Sresta Natural Bioproducts Pvt. Ltd is also very active. Its 24 Letter Mantra brand is sold on the domestic market in the company’s own shops and via trading chains and is also exported. Sresta founder Raj Seelam thinks everything belongs together in the organic system.

This is why he cooperates with more than 10,000 small farmers in eleven Indian federal states for production, has the raw materials processed and meanwhile offers a choice of more than 300 articles with the 24 Letter Mantra label.

The company circulates concepts and specific actions for sustainability via the Organic Circle. For example, members of this customer network receive health tips by SMS, invitations to food advice sessions or health seminars and can book holidays on an organic farm or have their shopping delivered to their home. Customer retention and spreading the organic idea go hand in hand here.

The growing educated middle class is increasingly aware of health and environmental aspects. If products are convincing and offered in a modern way, more and more consumers are willing to spend money on organic products and natural cosmetics.

The professional audience can see for themselves what the Indian organic market has to offer at this year’s BioFach India together with India Organic in the Palace Grounds in Bangalore from 29 November to 1 December.

NuernbergMesse GmbH