Today, India stands as one of the larger contributors to global economy. Government has always been consistent in supporting market development be it through trade liberalisation, tax ratification or open approach towards foreign investments. With the rollout of the recent Union Budget, India has now allowed 100 percent FDI (foreign direct investment) in single brand retailing to help fuel the growth opportunities for both foreign retailers as well as the domestic market.
From past couple of years, looking at country’s lucrative retail horizon, many global retail brands and retailers are planning to access Indian market considering its strength as a retail destination across the globe. While global brands such as H&M, GAS, Ikea, Starbucks and many other have already cemented their grounds in the country, still there are many in the waiting list.
Here is the list of 4 global brands that are eagerly seeking government’s approval for single brand retailing in the country:
Iconic smartphone maker Apple has been trying to operate company-owned stores in India since a couple of months now. The American conglomerate, after failing to get approval for single-brand retailing has once again filed proposal for the same. Apple’s first plea was rejected due to some loop holes in its application and DIPP had sought more information from the company.
Apple has its company-owned stores in countries like Germany, US, UK, France, China but does not own a wholly-owned store in India as of now. It sells products through distributors and eCommerce websites such as Amazon, Snapdeal & Flipkart etc.
Following Apple’s footprint and betting on its precedent growth trajectory in India as off now, Chinese electronics brand Xiaomi confirmed that it has initiated a process to set up single-brand retail stores and expects to complete the same in the next few weeks. India is surely one of the largest markets for Xiaomi and thus the company wants to open up a robust chain of company-owned stores here.
Xiaomi assembles devices like Redmi 2 and Redmi Note at the manufacturing facility of Foxconn. Currently it sells products through eCommerce websites in the country.
Fashion & accessories has always been one of the fastest growing retail sectors with huge growth potential. Eyeing to tap this potent retail vertical, German sports goods maker Puma has recently sought government's approval to operate their own retail touch points and e-commerce portals.
As per a statement given by a company’s spokesperson, Puma wants its existing wholesale entities to engage in direct retailing and e-commerce.
Another German-based sport wear retailer Adidas AG, based on the new regulations on single-brand retail policy of the country, had filed an application to the Department of Industrial Policy & Promotion (DIPP) to do online and offline retailing in the country. Besides its franchisee model, Adidas aims at opening up company-owned stores and e-commerce portal.
Adidas had in November 2015 announced its intent to open its first fully-owned outlet in India in the second half of the fiscal, after it got clearance to invest in local retail operations.
With the recent liberalisation of retail policies, it is speculated that many of such global brands will sooner or later set up or expand their operations in the country. This is surely an ideal time for prospective global retailers and the domestic market to work in sync in order to make an earnest start towards building an organised retail environment in the country.