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  • Domino's is crushing it in India.

  • It entered the country in 1995, and since then it's expanded rapidly.

  • There are over 1300 dominoes across 282 cities in India and its

  • footprint continues to grow.

  • Domino's has market share of more than 70 percent.

  • Domino's in India is even testing delivery in 20 minutes or less.

  • That's made it difficult for Pizza Hut and Papa John's to compete.

  • Even local Indian pizza rivals haven't been able to match Domino's

  • success. So what is Domino's doing that is so different from the

  • competition? It's localized its product offerings, but probably the

  • biggest differentiator, ust like in the U.S., Domino's is winning the

  • pizza war in India because it offers fast delivery and sophisticated

  • ordering technology.

  • Domino's success has made it more difficult for other chains to

  • flourish. Papa John's left India in 2017, closing 66 doors, according

  • to its 2017 financial filings.

  • And Pizza Hut footprint has stayed relatively small compared to

  • Domino's, despite its early entry to the market.

  • On March 24th, 2020.

  • India announced a 21 day lockdown during the Corona virus outbreak

  • instead of closing its stores across the country.

  • Domino's India offers zero contact delivery and pickup to its

  • customers, according to the chain's website.

  • Domino's India has taken strategic steps to stop the spread of

  • coronavirus by making sure company employees pass medical checks,

  • temperature screenings for employees before entering restaurants,

  • sanitizing protocols for equipment, bags and delivery boxes every

  • four hours. And employees must wash their hands every hour.

  • Pizza Hut has offered similar contactless delivery, but the brand is

  • still outnumbered by Domino's store count.

  • It has across the subcontinent.

  • So how has Domino's won India's pizza war?

  • The pizza market in India is valued at over $1.5 billion.

  • That's small compared to the U.S.

  • market, which is worth $46.7 billion dollars.

  • Still, the market is huge considering the huge population that India

  • has. But when Domino's and Pizza Hut started operations in India in

  • 1995 and 1996, respectively, the pizza market was much smaller.

  • It wasn't until July 1991 that India's leaders decided to open up its

  • economy, marking the beginning of globalization.

  • India removed subsidies on some items, lowered some import duties and

  • invited foreign competition in.

  • With globalization came American brands like Coca-Cola, McDonald's,

  • Pizza Hut and Domino's.

  • When international pizza chains entered India in the 1990s, some

  • experts say it wasn't immediately compatible with local tastes.

  • Pizza in India strikes a delicate balance between being too foreign

  • and not foreign enough.

  • They've been able to kind of walk the tightrope or the balancing act

  • between localizing to an extent that is definitely needed to be

  • successful in the Indian market.

  • But again being able to balance that with, you know, being perceived

  • as, you know, that the top pizza brand in the U.S.

  • and globally, not just in India.

  • That brings a lot of credibility to the brand and is why a lot of

  • people want to want to have it in comparison to others.

  • Domino's success is also thanks to India's huge millennial population.

  • In general, millennials are more likely than their older counterparts

  • to eat food from a restaurant.

  • Use technology, travel and embrace new foods.

  • Millennials account for about two thirds of the population in India.

  • And research shows that Indian millennials love eating out, spending

  • three times as much on restaurant visits than other forms of

  • entertainment. Nielsen research found that middle income urban

  • millennials spend roughly 10 percent of their food budget on eating

  • at restaurants. That's significantly higher than the 3 percent spent

  • by their Gen X counterparts.

  • As pizza's popularity grows, Domino's has found a huge market in

  • India as of the end of 2019.

  • India is Domino's second largest market after the U.S..

  • It's a different story for Pizza Hut.

  • Its business in India makes up a small fraction of Pizza Hut.

  • Overall business, the country accounts for just one percent of system

  • sales. China, on the other hand, accounts for 17 percent of Pizza Hut

  • sales. More and more local restaurants are starting to offer pizza,

  • too. Let's say the top 10 cities in India, you would have at least

  • seven to eight brands of pizza which are there and would offer at

  • least about who would operate at least five stores in that city.

  • But experts say no Indian chains are on the verge of becoming national

  • chains. Most are small and privately held, so they're not competing

  • on a national level with American chains.

  • In India, there appears to be a lot of room for growth in the pizza

  • industry. Domino's local franchise Jubilant FoodWorks had sales of

  • $510 million in fiscal year 2013, 18 percent higher than the previous

  • year, according to FactSet.

  • In fact, Jubilant FoodWorks sales have seen double digit growth for

  • 13 out of the last 14 fiscal years.

  • Jubilant FoodWorks also runs Dunkin in India and operates its own

  • Chinese food chain.

  • But Pizza is the company's most profitable business segment by far,

  • making up 78 percent of its revenue, according to FactSet.

  • Domino's footprint in India is huge compared to its rival Pizza Hut,

  • which has 430 restaurants, according to its Web site.

  • Domino's has 1,325 stores across 282 cities as of December thirty

  • first 2019.

  • And it's been adding stores steadily across new cities.

  • They are adding about 200 plus cities in India.

  • And if I look at the potential, they have the potential of expanding

  • to about 500 cities in the country.

  • So that's fairly substantial.

  • Papa John's entered India nearly a decade and a half after its rivals,

  • Domino's and Pizza Hut had come onto the scene.

  • By the time Papa John's expanded into India, some experts say it was

  • already too late.

  • By the time Papa Jones entered the Indian industry, Domino's hand-up

  • is ahead have already established and therefore brand in.

  • Many of the consumers used to prefer Domino's Pizza Hut to whip up

  • business because of the affordability, but Papa John's was prized

  • higher. Papa John's tried to close the gap in 2014 by acquiring Pizza

  • Corner, a south Indian chain.

  • At the time of the deal, Papa John's had 15 stores through its master

  • franchisee for the region, a company called Ohm Pizza and Eats Papa.

  • John said the acquisition of Pizza Corner would expand its presence

  • by at least 40 restaurants.

  • Papa John's had restaurants in 11 Indian cities, according to its

  • Twitter account. Its stores were concentrated in the southern and

  • western parts of the country.

  • But some experts say it was a mistake not to branch out to more rural

  • cities. India is a massive country, it both population and size part

  • of Domino strategy to familiarize Indians with the brand was expanded

  • to smaller cities and rural areas, not just one region.

  • Developing a restaurant network at a national level in India is

  • challenging due to its huge size and cultural differences between

  • states. But Domino's made it work.

  • But Domino's has invested heavily in rural areas and not just the

  • cities. And I do think that is an important point as to why they have

  • been successful in particular in comparison to their competitors,

  • their main competitors, such as Pizza Hut and Papa John's having

  • access to something like pizza is like having access to the rest of

  • the world feeling like you're a part of global consumer culture and

  • that you can try something that's different.

  • It has a tremendous amount of symbolic value, and I think Domino's

  • has recognized that and that people are willing to kind of pay for

  • that. Papa John's shut its indie operations in 2017, according to

  • local media reports, experts say.

  • Papa John's just couldn't stand out against the competition.

  • In the U.S., dominos one, the pizza wars thanks to delivery and tech

  • innovation. It's a similar narrative in India.

  • India has a huge population of Internet users, second only to China.

  • That number is expected to grow, fueled by the declining cost of data

  • and smartphones in developing economies like India.

  • Smart bombs are cheaper option than personal computers.

  • All this means that the Indian market is perfect for smartphone apps.

  • Domino's franchisee Jubilant FoodWorks says it was the first food

  • service company to launch online and mobile ordering nationally in

  • India. Analysts agree and say that Domino's introduced the online

  • ordering culture. And as of January 2020, nearly 30 million people

  • downloaded Domino's mobile ordering app.

  • If you look at a market like in India, Internet is mostly used through

  • mobiles. So mobile administration is a very high compared to that of

  • a laptop or desktop.

  • So Domino's were very quick to launch a mobile app and they also see

  • high ordering retro mobiles in 2013 online in mobile orders

  • contributed about 17 percent of delivery sales at Domino's by the end

  • of fiscal year 2019.

  • Online ordering contributed seventy five percent of delivery sales.

  • Domino's has stood out in the Indian delivery market guaranteeing

  • customers free pizza if a delivery takes 30 minutes or longer.

  • Domino's even tested a 20 minutes or less delivery guarantee in some

  • Indian cities and offers all night delivery in multiple cities.

  • While Domino's has succeeded in delivery and with its mobile app,

  • experts say Pizza Hut was focused more on dining in just like it has

  • in the U.S.. Some consumers prefer that, but it means that Pizza Hut

  • needs to rent large and usually more expensive real estate to offer

  • seating. I may have to travel to a particular point in the city just

  • to eat at a Pizza Hut or a Pizza Express that at times it takes away

  • from, though, you know, the desire to go there or you're not just

  • ordering, then you're more comfortable.

  • While many fast food brands look to China for growth, Domino's has

  • struggled there. The company attributes that to the fact that cheese

  • and bread aren't part of a traditional Chinese diet.

  • In India, the pizza chain hasn't had that problem.

  • Domino's tries to make sure its menu is well-suited to every country.

  • It expands into.

  • In addition to offering American staples like sausage and veggie,

  • Domino's, India serves pies topped with familiar ingredients like

  • chicken tikka paneer cheese and red paprika.

  • Chicken is the most popular meat in India.

  • And Hindus don't eat beef, which is why chicken dominates the online

  • menu at Domino's.

  • It's even hyper localized its products by region etting menu items

  • more suited to tastes in certain states.

  • For instance, in 2014, South Indian customers got a spicy banana

  • pizza. Green bananas are often used in traditional South Indian

  • dishes. Domino's localize more than its menu.

  • It tailored each restaurant to local conditions, too.

  • In small cities where people eat out as a family, the restaurants are

  • larger and have space for customers dining in.

  • In another huge differentiator, Domino's offers pies at a lower price

  • than Pizza Hut see when they launched in the 1990s.

  • Not very many people wanted to have a pizza.

  • So you had to bring them to the level of acceptability that, you

  • know, you come in and have a pizza or you order a pizza.

  • Also, if you look at the kind of prices that are there, Domino's does

  • awful pizzas, which would be for I think if I have to put it across

  • an American dollar terms, which would be less than a dollar.

  • Middle class consumer spending is on the rise in India.

  • That means they'll be spending more on food and beverages two times

  • more, according to World Economic Forum estimates.

  • India's Domino's second largest market behind only the U.S.

  • and its business is growing fast there.

Domino's is crushing it in India.

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多米诺骨牌如何赢得印度的披萨大战(How Domino’s Won India’s Pizza Wars)

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    joey joey 發佈於 2021 年 04 月 21 日
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