Since India is now among the the fastest growing and highly competitive fashion markets in the world, global brands have shown interest for their entry in the last few years. A legion of fabled international fashion brands entered the Indian soil in this fiscal. On the other hand, brands like Hermes, Louis Vuitton, Gucci, Chanel, Jimmy Choo, Burberry, Dior, Bvlgari, etc., are expanding business rapidly, after having successfully established a stronghold in the market.
India is among the largest markets of the world in terms of its sheer size which accounts for an approximate 14.2 per cent of the overall global population. It also is one of the most promising and progressively growing economies in the world, and houses a huge populations with considerable spending power. So naturally, with increasing globalization and international trade, the nation has emerged as a land of opportunities for numerous global brands. What poses as a serious obstacle in India is the wide rural and urban divide that creates another challenge for companies while establishing an effective distribution network.
On the other hand, there are success stories too. British fashion accessories retailer Accessorize’s store at Ambience Mall in Gurgaon is the company’s second biggest revenue earner. Two US Polo’s stores, one in Delhi and the other in Bangalore, rank among their top 10 stores globally. Women’s fashion brand Promod’s store in Delhi reports the highest sales per sq. ft. in Asia.
In the last couple of years, a new trend has also been witnessed. Several high fashion brands are taking the online only route to enter India, taking advantage of the absence of regulations around selling through third party portals and owing to factors like lack of quality infrastructure and high real estate costs. Under current regulations, the global brands do not require a licence to sell in India through online portals if they do not have operations here.
However, the Indian market is becoming a major attraction for big brands. Those already present, are adopting newer strategies to grow while many others are considering entry.
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