With the increase in the number of non-resident citizens worldwide, market promotion targeting this demographic is becoming an integral part of export promotion initiatives in many developing countries. These consumers, driven by a nostalgic connection to their homeland, are eager to buy items familiar to them with minimal effort and brief information.
In the article titled "Diaspora Marketing" published in Harvard Business Review, authors Nirmalya Kumar and John Benedict have explained the importance of the diaspora market for developing countries and illustrated conceptual ideas about its effectiveness. In the 1980s, the Indian company Dabur India Ltd initiated efforts to promote its products in the United Arab Emirates (UAE), targeting Indian immigrants.
According to researcher Arif Zaman, diaspora serves as a bridge for trade and investment between the country of origin and the country of residence. The diaspora plays an important role in effectively communicating about their countries of origin and promoting the consumption of products and services that are emotionally attached to their religion, culture, tradition, behaviour, standards, and language.
Nepal has also witnessed a sharp rise in emigration since 2000, coinciding with pervasive social unrest in the country. According to Wikipedia, in 2023, about 6.7 million Nepalis are living outside the country. Additionally, the Department of Immigration reported that approximately 1.6 million Nepalis migrated in 2023 in search of better income and education.
According to statistics published by the Department of Customs, mixed spices worth Rs 187.8 million were exported in the fiscal year 2022/23. Similarly, Bhujia rice worth Rs 2.2 million, beaten rice (Chyura) worth Rs 148 million, pickles worth Rs 109.8 million, bamboo shoots (Tama) worth Rs 1.1 million, soy chunks (Masyura) worth Rs 4.2 million, and Sidhe Nun (pin salt) worth Rs 400,000 million were exported during the same period.
The above figures are just a few representative examples of exports targeting non-residential Nepalis. Currently, products such as Sutkeri masala, jwano (carom seeds), fenugreek, mustard oil and ghee are being supplied directly and indirectly to various countries. In addition to food items, traditional clothes, flags, idols, and articles for religious ceremonies are being exported in abundance.
In essence, the demand for products with emotional ties to their place of origin is expected to increase in the near future. Businesspeople, who approach this potential in a systematic and organised manner, are likely to become pioneers in this field of export.
Export promotion initiatives targeting the Nepali diaspora, however, have faced challenges. The foremost challenge is producing Nepali products that meet the quality standards required by the respective countries. The second challenge is to make Nepali products both competitive and affordable for Nepali consumers.
While emotional attachment is a necessary condition for tapping into the market, it alone is not sufficient to ensure long-term retention. Establishing a balance among sentiment, price, profit, and supply mechanisms remains a major challenge that must be addressed with a well-thought-out strategy.
(The article was published on the August issue of the New Business Age magazine .)
