About 20 foreign brands likely to set up stores in India this year

Retail activity in the country is set to increase, with about 20 foreign brands likely to enter India in the next eight months, according to a report in The Financial Express (FE).

This is double the number of foreign brands entering India annually in the pre-pandemic period.

Experts said that growing affluence and consumer taste drive these brands to India.

Large groups such as Reliance and Aditya Birla are open to partnerships with foreign brands.

Abhinav Joshi, head of research, India, Middle East and North Africa at CBRE, said that global markets are witnessing a slowdown and recessionary concerns.

"In contrast, retail sentiment in India is upbeat despite food inflationary pressures. Spending across non-essential categories will also grow as the festive season nears.” Joshi said.

The brands that are eyeing to enter India in the next few quarters include Italian fashion brand Roberto Cavalli, American brand Foot Locker, Armani Caffe, the luxury cafe brand of Armani, British luxury brand Dunhill, Dubai’s Brands for Less, Old Navy and Banana Republic from Gap, Chinese brand Shein, Maison De Couture from Valentino, Spanish luxury brand Balenciaga, UK-based cafe EL&N, Galleries Lafayette from Paris, Kiabi, Mavi, Damat, Dufy, Tudba Deri, Avva, Boohooman, and Miss Poem, all apparel brands from Turkey and Europe.

Except for Galleries Lafayette, which has tied up with Aditya Birla Fashion and Retail for its India entry, most other names are either talking to Reliance Brands or have already tied up with the company.

These brands are looking to set up stores in Mumbai, Delhi-NCR, Bengaluru, and Hyderabad in the first phase of the launch, before expanding their presence in Pune, Ahmedabad, Chennai, and Kolkata, according to the FE report.

Devangshu Dutta, chief executive officer at Gurugram-based consultancy Third Eyesight, said the India retail opportunity is compelling.

“Some of these brands who’ve come earlier have also tasted success, especially in the fast fashion category. This indicates that brand awareness is growing, and people are ready to spend on global products as discretionary incomes grow,” he said.

On Wednesday, Japanese retailer Uniqlo announced that it is setting up two stores in Mumbai in October.