The opportunities are exploding in India market, many Domestic and International brands are still being established, leaving room for savvy competition and much of the retail world is now much focused on expansion mode.
Clarks Future Footwear plans to double stores in India
Clarks Future Footwear Ltd, a 50:50 joint venture between Future Group’s Future Lifestyle Fashions Ltd and UK-based footwear company C&J Clark International, plans to take its store strength to 100 over the next two years as demand grows for premium footwear brands. The joint venture, which expects revenue to touch £20 million this fiscal, recently opened its 51st store in India. Clarks currently sources most of its footwear from China and Vietnam. It sources about five million pairs of leather shoes sourced from India. The industry body, however, says such products account for only a small part of the market as an additional 12-15% VAT, 2-5% octroi and local body taxes increases the prices of most footwear. Clarks will continue with its existing store format in India, which involves stores with a selling area of about 1,000 sq ft. At the same time, the company is expanding its accessories range that includes handbags, shoe care products, bags, wallets and belts, and betting on e-commerce through its own website as well as Flipkart, Myntra and Amazon.(Source: http://articles.economictimes.indiatimes.com/2014-08-19/news/52983419_1_clarks-future-footwear-ltd-andrew-martland-cj-clark-international )
‘The Beer Cafe©’ to open 75 more outlets in next 2 years
Beer chain ‘The Beer Cafe’ plans to open 75 more outlets, taking the number of shops to 100 in next two years, as parts of its plans to expand reach across the country. At present, The Beer Cafe has 25 outlets in Delhi, NCR, Mumbai, Pune, Chandigarh, among other places. The beer chain will focus on opening its new shops at Delhi, NCR, Punjab, Mumbai, Bangalore and Chennai. Post expansion, the company eyes a topline of Rs 250 crore including 25-30 per cent sales from food. It will be the only cafe in India with a range of 50 different varieties of beer from across 17 countries in the world.(Source: http://articles.economictimes.indiatimes.com/2014-08-18/news/52942140_1_the-beer-cafe-new-outlets-ceo-rahul-singh )
Max Hypermarket ties up with Spar International, plans 20 stores
Max Hypermarket has signed up once again with Dutch food retailer Spar International and plans to open 20 stores as its licensee in the next five years, a day after ending a franchise deal with French retailer Auchan Group in India. A unit of Dubai-based Landmark Group, Max partnered with Spar International a few years ago but ended the tie-up in 2012 after opening 13 stores, subsequently tying up with Auchan. Max Hypermarket sees retail sales exceeding 300 million by 2019 from its stores that will now be rebranded Spar. In March, Tesco entered into an agreement with the Tata Group to form a 50:50 joint venture with Trent Hypermarket to become the first and so far only overseas supermarket chain to have applied for and received approval to set up retail stores in the country after India allowed overseas companies to own up to 51% of local ventures in 2012, but with restrictions. Global retailers such as Wal-Mart Stores and Metro prefer to operate wholesale cash and carry stores despite foreign direct investment (FDI) being partially allowed in multi-brand retail.(Source: http://articles.economictimes.indiatimes.com/2014-08-14/news/52807818_1_max-hypermarket-spar-international-auchan-group )
Michael Kors to expand retail presence in India
Luxury goods maker Michael Kors plans to expand its retail presence in India by opening more stores. It has already launched four outlets within a year of foraying into the country. The label is now present in Delhi, Mumbai, Kolkata and Bangalore where it has garnered positive response from customers looking for high-end accessories like its famous monochrome bags, watches and footwear for women. More stores would be opened this fiscal to take advantage of the rising consumer interest in luxury goods. Luxury goods grew 30 percent to reach 8.5 billion dollars (over Rs 52, 000 crores) in sales last year, according to a study by consulting firm KPMG and Assocham, which include products such as apparel, accessories, home decor, pens, watches, wines and spirits. In 2013, Michael Kors partnered with New Delhi-based Genesis Luxury Fashion to open stores in the country. The brand is said to have entered into a franchising agreement with its domestic partner. In the past, Genesis Luxury has brought several iconic labels like Paul Smith, BottegaVeneta, Jimmy Choo, Etro, Armani, Crabtree and Evelyn, Furla and Tumi. Genesis has also entered into a joint venture with UK’s Burberry to form Burberry India and the classic menswear Italian luxury label Canali to form Canali India.(Source: http://www.fashionunited.in/news/apparel/michael-kors-to-expand-retail-presence-in-india-080820147400 )
Thus, it is apt to say that there’s no denying that India offers plenty of potential for retail success.