COMPLETE GUIDE TO START SPICE BUSINESS IN INDIA
India is known as the ‘Homeland of Spices. Our country has a huge diversity and it is visible in almost all aspects. Having such a huge population and vast area we find variation everywhere, according to geography and culture. The same diversity is seen in Indian food and the reason for this is the spices used in it. The culinary expertise with a variety of spices is what makes Indian food so different from the rest of the world. Today, Indian spices are available everywhere in the world. The reason for this is the spice business that has been on the rise ever since the Britishers came. The item that was the reason for the British invasion to our country for trade purposes and led to unscrupulous historical events of colonization, the spices of India are well known around the world. Spices are amongst the most exported products from India amounting to a billion dollar industry. One of the most important items of culinary for Indians, spices are used in all households of our country thus one can expect it is never going out of demand. As a result, many people are drawn towards starting their own spice business.
If you are interested in starting your own spice business, let’s understand the basic necessities you’ll be needing to do so:
Decide on product
There are hundreds of spices that are available in the market, you have to first decide what are the products you want to sell. Do you want to go for exotic spices or regular ones, raw or grounded. The business will expand and the list can always increase but decide first what is your introductory range and how influential it is and will it get enough attention.
Decide on the size of business
The business has a lot of scopes to grow but keeping in mind that you are starting a spice business and this industry already has a lot of investors, you should consider how much money you’ll be ready to put at risk. Arranging resources for it can be a task in itself, it is better to start small and develop as your customer base develops.
License and Permit
To start any business in India, you need to have legal permission sorted beforehand to avoid any hassles with government officials. You’ll need to get yourself registered as a business person, get FSSAI approvals, and get all the documentation handy.
If you are making your new brand, make sure you get a patent by your brand name so no one can copy your products.
Even if you are making your products or just selling products from different brands, you’ll need storage space. Depending on the size of the business, get yourself a storage space. If you are opening an offline, in-person store, rent a place where trading of spice is allowed.
Price and packaging
Pick the right prices for your spices which do not vary a lot with the local prices. No one will spend extra on a new brand, thus keep your prices slightly lower but do not go overboard with cutting prices.
Keep the packaging minimalistic or use containers that can be reused. People nowadays are careful about the environment and do not want their products to be packed in harmful plastics. Go for sustainable packaging. It will make your brand stand out from others.
Have the right distributor
Make sure you have a distributor who can easily make you available with the supply whenever you demand them and have access to the raw material required by you at all times. You will also need packaging material and a few types of machinery. Arrange them before setting up your spice business.
Setting up any business requires a strong local connection and communication so that the business can propagate but with the rise in the use of e-commerce, things have become a lot easier. Make a website for your spice business and set delivery boundaries according to yourself. Arrange your products in different categories and use various models and tools which are available online to make your website catchier and more attractive.
Social Media presence and Marketing
Be ready to do a lot of marketing. Social Media is used by almost everyone around the globe. It is almost certain that at least one person in a household must be using any social media platform. Putting up pages on Facebook, developing a strong SEO, and investing in marketing offline can bring great audience attraction to your store. Putting up ads with discounts and amazing offers are always a plus. Along with online, spending on offline methods to propagate business is necessary. Go old school and hand our pamphlet whenever a customer arrives. Since you already have an offline store and most customers who have done business with you will keep your number saved, you can invest in WhatsApp Business and use its marketing tools to propagate your business. It is convenient to use and digitally provides a personal touch as the medium is one to one messaging which has become one of the best provisions of converting prospects to customers. Remember to greet them nicely and make them feel important.
This is amongst the first things to do. You are setting up a spice business that will demand a considerable fund, a principal investment. Get yourself sponsors who are willing to support a local business and have your back.
Create a brand name and logo
Although this sounds very common before opening a spice business, understand that a brand name is very important in this industry. Decide for yourself a brand name that people, when hear, can relate with the spice industry and there is no confusion in their mind about what the product could be. Make sure once you decide the name and logo of the brand, get a patent.
Being Indians we know for sure that the demands for spices will never go down. In the world of digitalization and globalization, when you spend in the spice business, you should be assured that with the right marketing and good quality of the product, your business will definitely excel and you will earn good profit from it. All the best!