Indian market: fashion and clothing, great prospects

International companies in the fashion and clothing sector are looking at the Indian market with growing interest. Thanks to the reforms implemented by the Government in the retail sector, the number of international players increases, as does the turnover of companies already present in this market: this occurs despite the fact that in India there is still a series of restrictions on minimum investments and suppliers locals.

The performance of some international fashion and clothing brands such as Canali and Zara in 2012 (which decided to enter the Indian market through joint ventures with local partners, the first with Genesis Luxury, the second with Tata) were even higher than expected of analysts, with double-digit growth: Zara, specifically, experienced a +56% without having opened any new stores. But the other players are also showing particular dynamism: Benetton registers an increase in its sales; the Swedish Hennes & Mauritz intends to invest an amount of around 85 million Euros, for the launch of 50 points of sale; the Japanese Uniqlo and the American GAP are in the process of finalizing their entry into the country; Inditex, the Spanish company that already owns Zara, is evaluating the opportunity to bring its top-of-the-range brand, Massimo Dutti, through the establishment of a Joint Venture.

India is configured as a difficult market with specific peculiarities: there is no single recipe for tackling it in the best possible way and it is not certain that a company that has acquired international experience will establish itself with certainty within this market. territory; moreover, approaching the local market implies a deep assessment of all the potential obstacles that could complicate access. However, India remains an opportunity that most of the players operating in the sector cannot afford to miss. The high concentration of customers in the three major cities (New Delhi, Mumbai and Bangalore) requires a well-defined investment model which requires a strong local partner.

Companies in the sector that intend 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 at our telephone number: 059.9770184. For more information on the services offered by Octagona click here.

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