|India is increasingly becoming aspirational and therefore is attracting a slew of international brands from across the world. The country has become a hotbed for foreign retail firms over the past few years and the growing interest that the global brands have shown in entering this market is obvious. According to McKinsey FashionScope, India is expected to welcome more than 300 international brands in the next two years.|
|The McKinsey report maintained that the economic expansion is happening across Asia, but ‘2019 will be the year in which India will take centre stage’. Proving the projections true, a legion of international fashion brands made their presence felt on the Indian soil this fiscal; these include Armani Exchange, Muji, Innamorata, North Face, Massimo Dutti, Cath Kidston, to name a few. Others like Hermes, Louis Vuitton, Gucci, Chanel, Jimmy Choo, Burberry, Dior, Bvlgari, etc., are further expanding their retail presence and establishing a stronghold in the growing country.|
|So, what really converted a traditional market into a highly lucrative one for the renowned international retail brands over the years? A number of factors including rapidly growing middle-class, aspirational consumers, infrastructure development, powerful manufacturing sector and strong economic fundamentals, among other drivers, make the country too important for these global brands. India is being propelled by strong macroeconomic tailwinds and is predicted to grow at 8 percent annually between 2018 and 2022 even as the middle-class in the country is forecasted to expand at 19.4 percent a year, outpacing China, Mexico and Brazil.|
|Furthermore, Government policies too are making India a favourable destination for the retail giants across the world. The decision to relax FDI norms for single-brand retail has been garnering positive results from the overall industry. As per the new decision, all procurements made from India by single-brand retailers for that brand shall be counted towards local sourcing, irrespective of whether the goods are sold in India or exported.|
|This sourcing for global operations can be directly by the retailer or its group companies. The Government has also allowed retailers with FDI to sell online even before setting up physical stores. According to data from McKinsey's FashionScope city-level growth forecasting tool, India's apparel market will be worth US $ 59.3 billion(about Rs. 4.12 lakh crore) in 2022, making it the sixth largest in the world and comparable to Britain’s US $ 65 billion market (Rs.4.51 lakh crore) and Germany’s US $ 63.1 billion market (Rs.4.38 lakh crore).|
|While it is worth mentioning that international fashion brands have been in India for almost a century now, it was almost negligible until the 1980s and it was only in the early 1990s when the Indian economy opened up and firms like Benetton, VF Corporation, etc., entered the scene. Post this, there was no looking back, and today, we are witness to endless global brands in the country.|
|Nevertheless, over the years, even as large number of foreign brands have ventured into the Indian market, not all have been fortunate enough to taste success in this mysterious and diversified market where the preferences of customers change after every few kilometres, and these brands are required to adapt to these mixed set of consumers. Also, its worth mentioning the different ways these international brands are making their entry in India. While some use licensing route, others set up wholly owned subsidiaries even as brands like adidas, Reebok, etc., chose to enter into majority owned joint ventures.|
|There is more to the entry of international fashion brands in India. There have been opportunities, challenges, success mantras, favourable or not favourable Government policies, among a lot of many other things that have made the topic as intense and wide as it can get. In line with this, Apparel Sourcing Week 2020 is coming back with a series of seminars/panel discussions in order to create an even larger platform for the retail and manufacturing fraternity to exclusively meet and interact with the international market leaders who have strategised their way into the Indian market and have tasted success or are in the process of reaching the top level in the market. The first and only of its kind in India, Apparel Sourcing Week has already received huge response from retailers and brands in the previous year, and is set to make it even bigger in its upcoming second edition.|
Apparel Sourcing Week 2020, a three-day Sourcing Show not only provides the Asian manufacturers a platform to showcase their products & manufacturing capabilities to the Brands & Retailers from all over the world including India, but also extends them a chance to attend the multiple seminars (headed by industry experts), workshops, open-house discussions and networking opportunities organised during these three days, which would help the manufacturers get a better understanding of Indian and International Retail and evolving dynamics of sourcing in various markets and retail formats.
Apparel Resources is well known for its benchmark publications – Apparel Online, StitchWorld and Resource Guide published from India, Bangladesh & Vietnam. These publications have been around in the industry for over 35 years, supporting, guiding and standing by garment exporters and the retail industry globally, providing them a platform to source better.