MONDAY, 18 SEPTEMBER 2017, KUALA LUMPUR: Malaysia External Trade Development Corporation (MATRADE) urges Malaysian private label manufacturers to leverage on the growth of private labels and store brands in India by exporting to the country that has a population of 1.2 billion people, also known as the world’s second largest population. With a growth of between 5% and 8% in the private label industry, the demand for international private labels, especially for fast-moving consumer goods, is booming in India.
Among the factors that contribute to the increasing demand for private labels in India include the improved quality of private label products in the market, resulted in a more affluent consumers in India. According to MATRADE’s market report produced by its trade office in Chennai, India is one of the fastest growing consumer markets in the world and its retail system is becoming ever more organised, indicating a good prospect in strengthening Malaysian manufacturers footprint there.
Currently, the share of private labels in India is around 10% and by 2025 the industry is forecast to have a market share of around 15% of India’s total retail segment. Among the private label sectors in Malaysia that can dominate the Indian market are the food sector, non-food category such as cosmetics, health & beauty, toiletries, auto care products, household cleaners, personal care and fabric care.
During the period of January to July 2017, Malaysia’s total trade with India recorded a double-digit growth of 37.1% to RM35.44 billion, compared with the same corresponding period in 2016. Malaysia’s export to India rose by 17.4%, amounted to RM20.49 billion, mainly consisting of electrical & electronic products, palm oil & palm-based agriculture products, crude petroleum, manufacturers of metal and chemical & chemical products. In 2016, India was also ranked as Malaysia’s 10th trading partner globally and 9th in Asia.