Fashion Brands and Indian franchisee like Mango, Aldo, Charles & Keith, Nine West are seemingly not able to compete with their global peers operating in India, says a report in Economic Times.
There are reports that suggests that promoters are now shifting their focus on Midle East market as they consi8der it more lucrative.
In comparison, other major global fashion brands such as Zara, Marks & Spencer, Vero Moda, Benetton, Levi's and Tommy Hilfiger recorded between 14% and 42% year-on-year jump in their revenues last fiscal.
Dubai-based billionaire Nilesh Ved, who heads one of Middle East's retail firm Apparel Group, saw 10% surge in sales (at Rs 415 crore) during last fiscal, marking a sharp decline from 40% growth in the previous year, according to the ET report.
It has been argued that the company might be losing interest in Indian market as it runs the business on low margins than in other International marekts. In fact, high rentals and and cut-throat comptition force companies to keep their prices in check.
In the recent past, fashion brand Mango had netered into deal with DLF to open more outlets but the plan could not succeed till date.
'Spanish brand Mango contributes nearly half its sales, but there isn't any growth avenue for the company after DLF deal,' ET quoted a CEO of a rival fashion brand as saying. 'During the same time, competition intensified and most labels under Major Brands had to discount heavily to keep prices at par with rivals.'