opinion

Why India Is the Next Gold Mine for Adult Business

Why India Is the Next Gold Mine for Adult Business

According to recent reports from CNN and other media outlets, the next 10 years are slated to be India’s “golden moment” in key business sectors like technology, pharmaceutical, ecommerce and manufacturing. According to CNN, there are more than 700 million internet users in India and roughly half a billion yet to come online; and it’s become too big a prize for Big Tech to ignore for long.

Why is India becoming the darling of tech, consumer and lifestyle brands in 2020? And why does this matter to any adult business or brand that is looking for new markets to explore, establish and grow? Let's take a look.

Never before has a market been so large and ripe for a category so saturated in most countries in the West.

The Population: This one is simple, 100 hands will shop more than 10 hands. There is no single country that has as large a population that speaks English, is active on social media, has the second-largest workforce with the fastest rate of adaptation of tech in business, finance, education, healthcare and communication. With over 600 million smartphone users that will reach more than 850 million by 2022, India is a brand-hungry, tech-savvy, internet-guzzling and money-spending walking giant that the world is now paying attention to.

That equates to an internet-connected population that is twice the size of America with current ecommerce spending estimated to top $120 billion in 2020.

Disposable Income: Almost 65 percent of the Indian population is under 35 years old, with most adults working full-time. Living expenses are generally split between parents so the millennials have high-paying jobs with attractive income to sustain their necessities and indulge in products and commodities that they desire. The Indian Sex Survey conducted this year in April revealed that over 78 percent of them would spend Rs10,000 ($140) or more on a sex toy, which is about the same they would on a smartphone.

Massive Demand, Not Enough Supply: With over a billion people, a nation that is the second largest consumer of porn (according to a 2019 PornHub survey), generating enough surplus disposable income to spend $70-$140 on a pleasure product, there is just not enough stock on the shelves that can satisfy this massive demand for adult products. India has famously given the world the art of sex, what we refer to as the Kama Sutra. Now the average Indian wants to reclaim their rightful place, and is willing, ready and able to indulge in products that enhance the experience and introduce new emotions and sensations.

Rise of the “New India” Movement: Gone are the days when talking about masturbation was considered shameful and premarital sex or cohabiting couples were a big no-no. Twenty years ago when I emigrated from India to the U.S., a kissing scene in a Bollywood movie stirred a national debate in news and media about the extent that “obscenity” can be allowed to be shown to the general public. Now some of the most popular movies show the female protagonist using a vibrator, kissing and other intimate scenes of lovemaking are acceptable as the definition of obscenity has undergone a big change from the time I left India.

Despite all of the attractive qualities of the Indian market, there are several factors getting in the way. Let’s now take a look at those.

Ambiguity About the Law: While there is no clear law that regulates the sale, marketing and distribution of adult products in India, the so-called authorities impose restrictions and prohibitions using language from an archaic law that prohibits “obscenity.” As per Section 292 of IPC: “a book, pamphlet, paper, writing, drawing, painting, representation, figure or any other object, shall be deemed to be obscene if it is lascivious or appeals to the prurient interest or if its effect (is) such as to tend to deprave and corrupt a person." So it’s very easy to label any products as obscene and have them prohibited for general use.

While there have been smaller wins on this argument in the past, there are still too many people waiting for someone to be the torch bearer and update these laws to current times. The process is not easy, for a High Court or Supreme Court to allow an Indian citizen to use a product that can hurt the sentiments of other citizens. It will need a mass movement. The tide is changing slowly, we at IMbesharam.com have started laying the groundwork needed to bring up this controversial matter to the biggest court of the country with the hopes that they will rule in favor of the citizen’s rights and freedom of their body. If that happens, the floodgates to the second-largest market for adult products will be open to the world.

Lack of Information: For the longest time, India has been thought of as a mysterious place on earth rife with snake charmers and yoga gurus toiling on sandy streets and cooking organic vegetarian delicacies. It is true that India has a large rural population, which is now using smartphones to aid better crop growth, timely harvest and improve output in terms of quality and quantity. India also has the largest middle class, which is driving the country’s appetite for brands and consumer goods. Unless you have been to India, the scale of the potential and size of the market is very difficult to judge.

Difficulty of Doing Business: For someone who is used to the ease of processes, documentations, production, supply chain, support and organization in the West, doing business in India brings about a new realm of reality. It requires learning the whole business cycle from start, the bureaucracy of government offices, navigating the requirements of set-up, finance, investment, formation and effective execution is a challenge many dread to take. Unless you are acquainted with the culture and habits or have a reliable partner in India, establishing a business, as complicated as adult products, may not be a cup of tea for many.

What’s next…

There is never triumph without a suitable application of effort and being able to overcome hurdles. The good news is that all the above challenges have a solution — though it involves time, energy and investment.

Never before has a market been so large and ripe for a category so saturated in most countries in the West. For businesses that are seeking to expand their cross-border presence, leverage their online brand reputation and gain a foothold in newer markets, there is a door welcoming the determined and the driven. As said in the Hindu mythology, “when the stars align, it’s time for you to rise and shine.” After several decades of being in existence, the stars are now aligning, and it’s up to us as the pioneers of the industry, the risk-takers and mission-bearers to make the move.

Raj Armani is the COO and co-founder of online retailer ImBesharam.

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