The liquor industry in India is often described as a slow-moving business, with experts emphasizing the challenges involved in building a successful alcohol brand. In a recent podcast hosted by Nikhil Kamath, industry leaders shared insights into the complexities of the industry and the patience required to navigate its nuances.
Abhishek Khaitan, Managing Director of Radico Khaitan, highlighted the importance of acquiring the first 10,000 customers, describing it as the most daunting task for any alcohol brand. He emphasized that these initial loyal consumers play a crucial role in attracting subsequent customers, ultimately leading to exponential growth.
Khaitan emphasized the significance of distribution channels in the alcohol industry, distinguishing between primary, secondary, and tertiary stages. He stressed that simply getting the product to a retailer is not sufficient; the product must sell off the shelf to generate revenue effectively.
Discussing the scale required for a nationwide presence in the alcohol market, Khaitan suggested that aiming for 30-40 units is essential. He advised aspiring alcohol brand owners to focus on niche categories initially and exercise patience in building a loyal customer base.
The podcast also featured insights from other industry leaders, including Minakshi Singh, co-founder of SideCar, Shuchir Suri, co-founder of Gin Explorer’s Club, and Suraj Shenai, founder of Goa Brewing Co. The conversation revolved around the process of establishing a successful alcohol brand with a substantial capital investment.
Overall, the liquor industry in India presents unique challenges that require a strategic approach and long-term vision. Despite the initial hurdles in acquiring customers, industry experts believe that with perseverance and a loyal consumer base, the potential for growth in the alcohol sector is substantial.
