Indian Wine Industry Case Study

Introduction
The grape vine was introduced into North West India from Persia as early as 2500 BC.
In post-Independence India (1947) - the Indian Constitution continued to discourage the consumption of alcoholic beverages and imports were severely disapproved.
The mid-1970s saw all licensing including that of alcoholic beverages.
The 1980s when the government started giving support to the development of vineyards (principally that of table grapes for export) subsequently many wine company were established.
Wine not being originally part of Indian culture, consumption is comparatively low to other wine consuming countries but there is a great demand for wine in Indian markets cause of change in life style and westernization in recent years.
Tendency

The distribution market behavior is changing due to the rising of retail industry and falling on trade consumption. Many new markets are emerging and redefining the distribution patterns and helping the wine market to reach the potential customers. The consumption of wine is now growing at a faster rate. The Indian middle class is burgeoning and going to be a great catalyst in the growth of the wine industry. Wine consumption has boosted by the exposure to the western trends and the growing acceptance of this culture. There is now growing level of social gathering and social drinking. Wide exposure to western culture through television, cinema, and travelling abroad at an early age is contributing towards growing of alcohol consumption. Indian wine industry is targeting these potential customers and organizing events for testing of wines and setting up wine clubs. These events and clubs are getting media converge to reach greater mass and to participate. These events have helped the industry to attract more number of customers. Average drinkers are getting knowledgeable about the different kind of wines and the correct combination of taking drink. Indian wine market is sensitive about the price hence the wine producers are trying to lower the price and to grab more customers. A range of products are offering by the players in the industry to tap potential customers from regular brands in affordable price to premium

• Wine is difficult to store in India due to lack of cellars and refrigeration as there is high temperature (global warming).

Challenges
The Indian wine industry is evolving and with the rising profile of wine there is a lot of scope in business opportunities available in the sector.
However easy is it to enter a business the target market is less than 1% of the total population
Indian wine industry is mysterious, as on one hand it is constant and unending need for consumption and on-the-other hand are the realities and challenges seem to be too big to overcome in realizing its true potential, honestly defining it has a tricky market, achieving mixed results at best.

Import/distribution:
Distribution has a high failure rate as the short and medium term returns in this business are disproportionately low and can hamper the initial investment.
Many importers have shut shop in India, some facing heavy losses.
The survival and constant success of import and distribution of wines is possible if major volumes are generated in the for trade segment, which depends on wine consumption in