Thursday, April 3, 2008

Food Innovation in growing markets

At The Times in India, they’ve recently written an article on the fast paced innovation that takes place in the food and beverage industry. With India quickly becoming one of the world’s largest emerging markets, food retailers there have to keep up with the demand of new products in their market. With a growing urban market along with one of the largest populations in the world, innovation in retail is fast pace, and new innovative ideas must be quick to market.

The goal of the food and beverage industry stores is to not only attract new customers, but keep repeat customers coming back. In India, the food and beverage industry has grown 35% each of the past few years, and with the fast growing urban population continually growing, it’s expected to grow 40% this year.

Innovation is quick in this segment. There’s no time to test, they have to put an item on the market and then determine the rate of success. In addition to research and development (usually 1% of the annual revenue), other measures are being taken to appeal to this target market. At Blue Foods, they brought an Italian chef to India to authenticate the Italian taste to Indians flavors. The Indian population represents one of the fastest growing markets today. How are companies going to catch the attention of the people? Many of the global food chains are already in India. Are you ready to innovate your way into the Indian market?

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