Indian market: fashion and clothing, the great prospects

International fashion and apparel companies are looking with increasing interest at the Indian market. Thanks to the reforms implemented by the government in the retail sphere, the number of international players is increasing, as is the turnover of companies already present within that market: this is happening despite the fact that there are still a number of restrictions on minimum investment and local suppliers in India.

The performance of some international fashion and apparel brands such as Canali and Zara in 2012 (which decided to enter the Indian market through joint ventures with local partners, the former with Genesis Luxury, the latter with Tata) was even higher than analysts' forecasts, with double-digit growth: Zara, specifically, experienced a +56% without having opened any new stores. But other players are also showing particular dynamism: Benetton is registering an increase in its sales; Sweden's Hennes & Mauritz intends to invest an amount of around €85 million, to launch 50 stores; Japan's Uniqlo and America's GAP are in the process of finalizing their entry into the country; and Inditex, a Spanish company that already owns Zara, is considering bringing its higher-end brand, Massimo Dutti, through the establishment of a joint venture.

India is configured as a non-simple market with specific peculiarities: there is no one-size-fits-all recipe for dealing with it in the best possible way, and it is not certain that a company that has gained international experience will establish itself with certainty within that territory; moreover, approaching the local market implies a thorough evaluation of all the potential obstacles that could complicate access. Nonetheless, India remains an opportunity that most players operating in this sector cannot afford to miss. The high concentration of customers in the three major metropolises (New Delhi, Mumbai, and Bangalore) requires a distinct investment model that needs a strong local partner.

Companies in the industry wishing to start an internationalization process in India can request a meeting with our consultants by contacting us via e-mail at the following address: octagona@octagona.com or to our phone number: 059.9770184. For more information about the services offered by Octagona click here.

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