As Indian retail industry is progressing aggressively, more and more international brands are eyeing to venture into the Indian market. Besides, the booming ecommerce sector has added on to the growth of this industry.
According to the IBEF report offlate, the Indian retail sector was estimated at US$ 520 billion and was among the largest employers in the country. By 2018, the Indian retail sector is likely to grow at a compound annual growth rate (CAGR) of 13 per cent to reach US$ 950 billion. Food and grocery is the largest category within the retail sector with 60 per cent share followed by the apparel and mobile segment.
As the retail industry is expected to move on a progressive trend, easing of FDI policies by the new government has opened up avenues for international retailers to join the race.
Recently, Amercian luggage brand Hartmann entered the Indian market by opening its first store in Bengaluru; with plans to open another five doors by end of next year. Samsonite South Asia, makers of Samsonite and American Tourister, which had acquired Hartmann, will be targeting to capture the top end of the market with the brand.
Commenting on the launch, Ramesh Tainwala, Global CEO, Samsonite said. "We were missing a play at the top end of the market and to be able to capture that, one needs a story and a brand with the right DNA.Hartmann is that brand that we would like to position as classic American luxury,"
Besides, some global brands are not only eyeing the Indian market but are also planning to expand their roots through various channels.
Offlate, the growth of luxury retail in India has been a driving force for global brands to venture into the country.
Elaborating on his views of entering the Indian market, CEO of the Jamin Puech Paris, Christophe Kapusta said: ‘There are two main reasons why I chose Indian market, Firstly, our presence in Asia, and particularly in Japan and China, is getting wider via EBOs and MBOs, and this is the rational for us to keep expanding in the region. Also, we believe the exclusive and refine design of our bags should definitely be appealing to Indian clientele, who are very sensitive to seek refined fashion products. ‘
Besides, Indian consumers and their preferences have changed over the years, and may retailers are considering it to be a positive factor to invest in India.
Expressing his views on the Indian market, Rafael Vanthoor, Chairman, Berghoff, said:’ I think that the Indian market is a fast growing market. It is a perfect market. People in India have the buying potential, but at the same time, they are very price sensitive in nature. Indian consumers have the right preference for quality products and that’s what we offer.’
In a nutshell it can be concluded that the retail segments dynamic progress is pulling international brands to venture into the Indian market. Besides, factors like increasing per capita income and demand for premium products has further lead to an increase in this trend.