How E-commerce Exports Enable Indian MSMEs to Grow in Global Markets
With impetus from the government, India’s total export in FY 2021-22 was at a massive $418bn, out of which $40bn+ was in March 2022 alone. In line with this achievement, Indian exporters are on track to cross $5bn in exports through the Amazon Global Selling program.?
What Products are Growing In Export?
Exports are definitely booming, but what products are the driving force behind the boom? On Amazon international marketplaces, the biggest growth was seen by apparel (82%), followed by toys (55%) and jewellery (47%). Ayurveda has also been a big driver of growth with positive reviews from customers from all over the world. One reviewer who purchased an Ayurvedic product from Amazon USA, talking about a Muladhara scent, said:
“The smell is amazing. I bought the roll on and loved the scent so much that I bought the spray. It’s sweet and almost floral, but it’s truly one of the loveliest scents I’ve ever purchased which is why I bought more. The spray is lighter than the roll on.”
Another fascinating point to note is that Indian products are being used in new and innovative ways by customers in other countries. For example, Indian bedsheets are a big hit in the West – but not in any way you can imagine. Owing to their colourful designs, they have been adopted as beach towels, throws and wall hangings. Also, the rich flavour of shudh ghee is being recognized by coffee connoisseurs around the world. They are being used as a supplement to enhance coffee blends.
Business is Booming Despite Scale
Interestingly, both established brands and small-scale export businesses are growing at a good pace.?
For example, Paras Fatnami’s Honey Twigs was already an established honey supplier, working with brands like Starbucks, Marriott Hotels and Air Vistara. During the COVID-19 pandemic, their revenue was impacted because of a massive halt in this chain of businesses. At this time, though, they were able to pivot and sell online, doing brisk business in Amazon USA’s Black Friday and Cyber Monday sales.
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At the same time, Abhishek Middha, a Jaipur-based college student, launched a tapestry business in 2012 from the basement of his house. He was amongst the first Indian exporters from India to join Amazon Global Selling. With his business flourishing, Abhishek set up AND Exports and has now ventured into other categories like home décor and leather goods. Despite the challenges over the last couple of years, AND Exports has grown over 3X year-on-year while serving customers across the USA, Canada and Europe.
How You Can Grow Your Business
The process of growing in international markets is not difficult, but definitely unique. Growth processes are different for every new market you want to sell in. However, a few key things, or growth hacks are common to most regions. Some of them are:
1. Understanding global demand - Demand for a product can fluctuate strongly with every small change in environment. For instance, cotton apparel does really well during summer as long as they are targeted in the regions where temperatures are actually comfortable enough for them to be worn.
2. Creating unique products geared towards export - Products geared towards export, while not fundamentally different, need to be looked at from the perspective of the audience they are being targeted to. Some elements of certain Indian products need to be changed in order to best cater to global markets. For example, international customers usually prefer and expect aesthetic and muted colours as opposed to bright and lively packaging seen in India.?
3. Leveraging major marketing events for international markets (Black Friday, Ramadan, Christmas sales) - Like India has major sales on Republic Day, Diwali, etc., the global market also has sale events on Christmas, Black Friday (after Thanksgiving) and Ramadan (mostly in the Middle East) where consumers tend to shop more. Offering more products at competitive prices can help get huge spikes in sales.
India is aiming to drive over $125bn worth of export via ecommerce by 2030. To contribute towards that goal, we at Amazon,, have revised our pledge to enable $20bn in cumulative e-commerce exports through our program. To leverage our platform and take your business global, click here and register.?