Many International brands which entered market in past, wound up operations and went back. May be the timing was not right, market was still evolving or there were challenges that were not expected. That said, the aspiration of these brands lived the time and they are re entering the market. Online retail, correct positioning, right partnership models are some of many factors driving this process.
Chinese brands Konka, TCL plan re-entry into Indian durables market
Chinese brands Konka, TCL, Haier and Midea are preparing to make a dent in the Rs 40,000-crore Indian durables market where Koreans and Japanese firms enjoy brand equity. Three industry executives, who did not wish to be named, said Konka and TCL are exploring re-entry into the Indian white goods market through brand licensing and joint ventures. Haier and Midea, on the other hand, plan to pump in more funds to expand their India footprint. In India, most Chinese brands have underperformed because of perception regarding product quality. These brands are now trying to overcome this with higher investments. TCL, which had entered India a few years ago with low priced TV sets, currently, sells its Alcatel brand mobile phones in India.The head offices of TCL and Konka did not respond to ET’s email queries regarding their India plans. Haier India president Eric Braganza said the brand has moved away from the low price perception in India and undertaken a correction whereby prices are 3-5 per cent lower than LG or Samsung. Haier India has 4-5 per cent market share in India. The company will invest Rs 100 crore by 2015 to expand capacity at its Pune plant, launch brand stores and premium models like side-by side refrigerators and wine cellars.
Overhauled Pavers England to re-enter India as luxury brand
Product assortment and pricing will also scale up. From an average price point of Rs 2500 that pits it against Hush Puppies and Clarks, Pavers’ collection will now begin at Rs 3600 pitting it against Aldo and Steve Madden. Pavers England, the first foreign brand to receive approval for 100 percent single brand retail in India, is all set to reposition itself as a luxury brand that specializes in footwear and handbags. With an investment plan of Rs 25-30 crore over the next few years, Pavers is gearing up to launch exclusive stores and upgrade its product line. This calls for a complete overhaul. Pavers will pull out of department stores and will focus on exclusive outlets. It is upgrading the look and feel of its existing 35 stores across India. Forty new stores that will come up over the next 18 months will reflect Pavers’ new positioning. Product assortment and pricing will also scale up. From an average price point of Rs 2500 that pits it against Hush Puppies and Clarks, Pavers’ collection will now begin at Rs 3600 pitting it against Aldo and Steve Madden. Pavers will restrict itself to the top 8-9 metros. While e-commerce will also serve as an important channel, Pavers will only offer its merchandise through select partners, with whom it is presently in discussions. Parent Pavers UK and London-based foresight group will invest Rs 25-30 crore over the next 2 years in India for this transition. While this new positioning will pull down sales growth from 60 percent to 50 percent Y-o-Y, Pavers believes it will ensure profitability necessary for the long haul.(Source: http://www.moneycontrol.com/news/cnbc-tv18-comments/pavers-england-to-be-repositioned-as-luxury-brandindia_1151049.html )
Flipkart, Myntra, Jabong help global brands like Replay jeans and Energie apparel make a comeback
Replay jeans, Energie apparel and Salvatos flip-flops are among global fashion brands making a comeback, thanks to the boom in online retailing, after having been forced to shut their India stores. They’re expected to be available online through sites such as Flipkart, Myntra and others. Italian jeans brand Replay exited India in 2008 after its JV with Future Group didn’t make much headway. Replay, which is preparing to return through Flipkart and Myntra, won’t have a brick-and-mortar presence
Italian brand Energie had ended its partnership with Arvind Brands in 2012. New York-based foldable flip-flop brand Salvatos saw its push into India cut short when partner Wadhawan Group decided to exit retailing two years ago. But as the company gets ready for its digital re-entry, at least one vendor has already opened a webstore on Snapdeal.com’s marketplace to sell the sandals. Encouraged by the pace at which online retail is growing, many sellers have adopted a digital-first strategy rather than opening capital-intensive physical stores. Chinese mobile handset maker Xiaomi made its India debut on July 22 with online-only sales of the Mi3 phone on Flipkart.com. Before that, Motorola had adopted the same strategy with recent phones being sold only on Flipkart. Jabong.com, meanwhile, says it’s getting a healthy response to UK fashion brand Dorothy Perkins, another company that has entered India solely through the e-commerce route.
(Source: http://m.economictimes.com/industry/services/retail/flipkart-myntra-jabong-help-global-brands-like-replay-jeans-and-energie-apparel-make-a-comeback/articleshow/39843789.cms )
All in all, we feel that international brands are in India not only to stay, but also to expand. There is yet a lot of potential untapped in the market, and as the integration of the Indian consumer with global trends continues, international brands can expect to find India an increasingly fertile ground for growth.