Belgian retailer Colruyt Group has made a remarkable move in its international expansion. In an effort to get to know the huge Indian market, it has started selling products of its private label “Boni Selection” on local online platforms.
International export strategy
The trial has started very cautiously, with three spreads (two speculoos spreads and a hazelnut paste). The aim is to sense the demand for such private label products that are positioned as European quality products in a niche market. The three spreads are already for sale through Amazon‘s Indian platform and through and Walmart subsidiary Flipkart. Later this month, Indian webshop Big Basket will also start offering the products.
Colruyt’s ties with India started with an IT office in Hyderabad in 2007 and continued with investments in Indian farms in 2022, but actually selling its products there is a big step forward. Managing Director Hari Subramanian of Colruyt Group India told Belgian newspaper De Tijd that he “wants to test how Indian consumers react. If successful, we will consider expanding the range.”
The Indian prices are quite a bit higher than what Belgian consumers pay: a jar of speculoos paste costs 499 rupees (5.6 euros), compared to just 1.5 euros in Belgium. Subramanian explains the difference by pointing to the premium positioning and the appeal of European products in India.
Africa remains key
Despite the Indian trial, Africa is still the focus of Colruyt’s export strategy, with the DR Congo as the largest market. The Belgian group explains that African retailers often demand complete ranges, while their Asian counterparts are more likely to ask for specific products such as chocolate.
In Africa, Colruyt is achieving success through targeted marketing and cooperation with local partners. For example, sales in Congo grew 50 % in 2022. Although turnover figures for the export branch are not made public, earlier figures indicated stable growth. In 2015, the group generated forty million euros in export revenue. The project in India could pave the way for further innovations in Colruyt’s export strategy.
