Uncovering the Reality of the Indian Market Through AI and Local Expertise: Behind the Scenes of Supporting Unicharm’s Entry into the Pet Care Business

Driven by DINKWADs: The Potential of India’s Fast-Growing "Cat Market"

—Could you tell us how Dentsu Digital came to be involved in Unicharm’s pet care business in India?

Mariko Shimizu (Dentsu Digital): Originally, we had been collaborating with Mr. Takada, who was supporting the baby care business for UniCharm India (the local subsidiary) at dentsu India. In the midst of that ongoing support, the client approached us with an inquiry: "We want to launch a new pet care business in India and expand our business there."

Around that same time, Dentsu Digital was running a Proof of Concept (PoC) for an AI solution called "LOCAL ZOOM." This tool analyzes publicly available data, such as social media posts and product reviews, using AI to understand consumer insights (deep-seated mindsets) and market trends in overseas countries, thereby supporting strategic planning. We felt this solution was an excellent fit for addressing the client's challenges, so we proposed it through the dentsu India team.

In terms of project execution, Mr. Takada drove the overall initiative forward as the front-facing account executive, while Ms. Dagur, a planner at dentsu India, was responsible for reviewing LOCAL ZOOM’s analysis from a local perspective and compiling the supporting evidence.

Mariko Shimizu: Group Manager, Solution Business Dept., Global Solution Room

—What is the current state of the pet market in India?

Kazunori Takada (dentsu India): India is experiencing remarkable population growth and economic development, making it one of the most competitive markets in the world. The pet market also holds immense room for growth, and I feel it is currently in a highly attractive phase.

Kazunori Takada:
Executive Vice President Dentsu Creative,dentsu India

Karuna Dagur (dentsu India): Traditionally, dogs have been the centerpiece of the Indian pet market, but a major characteristic of the past five to six years is the surging number of cat owners. Currently, the overall market size is estimated to be around 4 billion USD, with pet food accounting for approximately 80% of it. As it stands, dog-related products still represent the majority.

On the other hand, while the cat market is still developing, it is expanding rapidly. The driving force behind this trend is the rise of a lifestyle demographic known as "DINKWADs" (dual-income couples living with a pet). Since they are often away from home for work or travel, they tend to choose cats, which are relatively easier to care for. I own a cat myself, and I can truly feel that the options for cat supplies have expanded dramatically over the past two to three years.

For instance, "Heads Up for Tails," a major Indian pet care brand, operates physical stores in addition to its e-commerce platform. In their stores across Bengaluru, Delhi, and Gurugram, the vast majority of the sales floor used to be dedicated to dogs, with only a tiny corner for cats. Today, however, it has expanded to the point where dedicated sections for dogs and cats sit side by side. Especially in the five years since the COVID-19 pandemic, the cat supplies market has achieved remarkable growth.

Karuna Dagur:
Vice President,dentsu India Management Team

Unraveling "True Buying Behavior" Through Data × Local Insights

—What specific deliverables did you provide to the client based on the LOCAL ZOOM analysis?

Shimizu: The report was structured around three main pillars. First, a persona analysis and clustering of pet owners based on social media data from platforms like Instagram. Second, quantitative and qualitative analyses of e-commerce reviews—such as on Amazon—to identify key product differentiators. Based on those analysis results, we then conducted a competitive positioning analysis comparing India with Thailand, where the pet business was already established. Integrating all of these elements, we delivered a report that defined the direction of the communication strategy—'to whom, what, and how to communicate'—along with structural proposals for creative assets.

Sample Deliverable Report

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—When reviewing the data and analysis generated by the Japanese team, what parts did you find particularly accurate, and were there any gaps compared to local perceptions?

Dagur: I found the pet owner persona analysis to be exceptionally accurate. They visualized the attributes and types of pet owners using social media data, and the content aligned remarkably well with the actual situations I observe locally, as well as with various market reports. It was a highly precise and useful analysis.

Conversely, as a crucial piece of local context, the reality in India is that consumers frequently use platforms other than Amazon to purchase pet food. In urban areas of India today, "Quick Commerce" (instant delivery services) is experiencing explosive growth, delivering products within 15 to 20 minutes of ordering. This is widely used for routine pet food purchases. Additionally, there is a strong, community-rooted presence of specialized pet e-commerce malls offering robust loyalty programs and discounts, as well as neighborhood mom-and-pop pet shops where owners order directly via phone calls for home delivery.

Because these channels do not accumulate customer reviews online the way Amazon does, it is difficult to include them as digital data for analysis. For this project, we were able to elevate the strategy to an even higher resolution by overlaying these real-world local purchasing trends onto the analytical results from LOCAL ZOOM.

High-Precision Analysis in a Short Period: A Collaborative Framework to Capture the Momentum of Overseas Markets

—What did you keep in mind most during the collaboration between the analytical team in Japan and the local team in India?

Takada: Our fundamental stance in global collaboration is to respect the expertise of local members and create an environment where they can perform at 100% of their potential.

For this project, equipped with the advanced AI solution LOCAL ZOOM, we emphasized building a framework where we teamed up with members who possess a deep familiarity with the local market and look at things from an actual consumer's perspective. As a result, we were able to draw out incredibly sharp insights from Karuna and the rest of the local team in a timely manner.

Shimizu: Through AI analysis of vast amounts of social media and e-commerce data, we were able to capture the reality of rising cat ownership in India as an online 'phenomenon.' However, by combining that with the qualitative context held by the local team—such as their everyday lived experiences and values—the resolution of the implications and hypotheses derived from the data increased dramatically. By having Dentsu Digital serve as the "hub" to digest and translate these insights into a format that Japanese companies can readily use for strategic planning, I believe we were able to provide more practical and compelling value.

Interview Scene with the dentsu India Team

—How did the client respond?

Takada: They expressed both surprise and delight that we could deliver such a highly accurate analysis and proposal in such a short timeframe. In particular, by combining quantitative AI analysis with real-world local perspectives, we didn't just validate the hypotheses the client already held regarding their existing products; we also uncovered unexpected viewpoints, such as "new ways of presentation and fresh approaches." This was a major achievement.

A New Model of Partnership: Accelerating Overseas Market Development via AI × Human Expertise

—Finally, do you have a message for brands and companies that are facing challenges in entering overseas markets or understanding local consumers?

Dagur: The Indian market possesses a complexity that can be described as "a single country, yet incredibly diverse." Just shifting to a different region can completely change the language, consumer behavior, and purchasing styles.

Furthermore, the most critical factor in the current Indian market is "speed." With rapid digitization driven by services like Quick Commerce, new brands are emerging almost every day. To capture consumer mindshare, you need to understand the market and move faster than anyone else. To achieve this, it is essential to dramatically shorten the time-to-market by combining AI-based solutions with local expertise.

Takada: Overseas markets, especially India, are highly complex. No matter how meticulously you craft a strategy on paper, things will not always go according to plan. That is why what matters most is a "high-speed cycle" where you quickly establish hypotheses, execute them, and repeatedly iterate and improve while testing. The Dentsu Group leverages AI solutions like LOCAL ZOOM to offer an end-to-end support system—covering everything from market data collection and analysis to strategy formulation, local execution, and ongoing optimization.

Shimizu: In this specific case, for a client who did not yet possess sufficient data or expertise regarding the Indian market, our greatest value lay in our ability to "translate" the real-world local market environment into clear language and context aligned with a Japanese business perspective.

Achieving both speed and high quality to deliver high-impact outputs in a short timeframe—that is where the core strength of LOCAL ZOOM and Dentsu Digital lies. For companies aiming to enter overseas markets or expand their businesses globally, we aspire to remain the ultimate partner walking right beside them.