India is the second most promising market for global retailers who are looking to expand their business, after China, says a recent report. The country’s huge market potential, fast growth and improved ease of doing business moved it to the second position. The world’s fastest growing major economy India presents a retail market of one trillion dollars.
Retail demand is increasingly driven by urbanisation, an expanding middle class and more women entering the workforce, the 2016 Global Retail Development Index report by AT Kearney said.
The country has also relaxed several key FDI regulations in single-brand retail and now allows 100 per cent FDI for online marketplaces. These measures will encourage major international players to enter the Indian market as well as the online space.
“In the past year, several foreign retailers have entered India. In fashion, Aeropostale, The Gap and the Children’s Place entered in partnership with Arvind Lifestyle Brands. Topshop and Topman entered via e-commerce through Jabong.com, while H&M became the first international fashion retailer to enter alone after the government approved 100 per cent FDI in single-brand retail. In terms of formats, the cash-and-carry model is thriving and profitable,” the report added.
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