Global brands to don Indian colours

Global brands which have set up a shop in India are now looking at Indianising their products. In the last couple of months major fashion brands such as Hennes & Mauritz (H&M), Aeropostale and Gap Inc have opened in New Delhi with large stores, joining the ranks of Mango, Zara, Marks & Spencer and Tommy Hilfiger. These brands have realised that to capture the Indian market they need to tailor products as per the Indian market. To succeed here, localised products are essential.

India is the world’s fifth largest global destination in retail space. It is one of the top 10 markets for leading international brands. That is the reason that major global brands are making a beeline here. New York based teen brand Aeropostale opened a store in Delhi in November and hardly a month later it has managed to make Rs 8 lakh in daily sales. H&M was able to rake in Rs 1.75 crore on its inaugural day in October.

A growing market story

Indian apparels market is expect to grow at 9 per cent CAGR as per a study by Technopak. Also, there has been a growth in money power in Tier II and Tier III cities. Indian e-commerce market too is expected to keep is fast forward growth pace. All these reports give confidence to the investing foreign retail giants who will now have to localise their products. For a brand like Aeropostale, which targets teenagers, it makes sense to tweak its products according to Indian needs. For instance, its faux leather jackets or coats will not work in Mumbai’s humid climate.

More and more stores

Most global brands believe in opening real stores rather than strengthening its presence online. They believe that customers prefer to experience the brand, which they can do only in a real store. Keeping this in mind, H&M plans to expand its chain of stores by around 10-15 per cent every year. Gap, too, plans to expand by opening 40 stores in the next five years while Aeropostale will open 30 stores and 25 shop-in-shop locations in the next three years.

Janne Einola, Country Manager, Retail, H&M India admits that ‘India is one of the most exciting markets in the world right now, with so much potential within retail.’ Business experts such as Gurpreet Wasi, principal consultant, retail business, IMRB International believes that having a ‘localised, Indian specific collection is very important’.