In what seems to be a positive indication for the Indian market, more than 50 global retailing chains are set to open approximately 3,000 stores in India in the next six months, reports Economic Times.
The report cites a data compiled by Franchise India that has tied up with these 50-plus retailers to help them launch the stores in small and untapped markets in the country.
Some of the brands that customers will be able to avail include Korres, Migato, Evisu, Wallstreet English, Pasta Mania, Lush Addiction, Melting Pot, Yogurt Lab and Monnalisa. Some US and Singapore brands will also be a part of the retail chains planning to open stores in the country.
All the retailers are expected to invest about $300-500 million for opening roughly 3,000 stores, in the backdrop of India’s expanding economy and improved ease of doing business.
“The first retail wave happened a decade ago when bigger retailers and brands entered India,” Gaurav Marya, chairman of Franchise India Holdings, said.
Franchise India Holdings is a retail solutions provider that is helping these 53 brands find partners and get regulatory clearances.
“Now, it’s the turn of small and mid-sized brands as they look to cash in on the open retail policy and a huge gap in the market for branded products,” he added.
Brands in question
Out of the incoming brands, 18 belong to the food and beverage sector, 26 in apparel, education and lifestyle products.
This influx of brands wanting to start businesses in India is due to India’s retail market dominance, which has now surpassed China, propelling India to become the “most promising retail market in the world”, as per an AT Kearney report.
There has been an increasing trend of native retailers failing in their own country, forcing them to explore other beaming markets like the one flourishing in India.
The trend of foreign brands opening establishments in India is also due to the government’s directive, allowing 100 per cent foreign ownership in business-to-business (B2B) eCommerce organisations.
“Government efforts to boost cashless payments and reform indirect taxation with a nationwide goods and services tax are also expected to accelerate adoption of modern retail,” the AT Kearney report added.