M&S stumbles in other global markets, bets big on India

British retailer Marks & Spencer (M&S) is betting big on the Indian market while going slow with expansion plans in other important markets such as China and Russia because of the tough economic situation. The company is all set to open the doors to its 50th store in the country, the highest outside home market in the UK.

Rapid expansion in India on cards

While the company operating stores in almost 60 markets globally it has shut a few in China recently. In India, the brand is going ahead with its agressive retail strategy opening almost 10 stores every year. The company that witnessed sales growth of over 23 percent in the fiscal 2014-15 in India is keen on focusing on expansion through physical stores.

M&S is present in 21 cities in India so far, with a focus on large cities such as Mumbai, Delhi and Kolkata. Now, M&S is looking at expanding reach in markets such as Vijayawada, Jalandhar and Vizag, during the current fiscal year along with increasing footprint in larger cities. M&S has opened 12 new stores in India over the past year and will soon launch its first television campaign in the country.

Apart from retail expansion, the India strategy also includes both partners focusing on building a leadership position in India. Marks & Spencer opened its first store in the country in 2001 and in April 2008, it signed a joint venture with Reliance Retail to form Marks & Spencer Reliance India.

Focus on lingerie, sustainability

Last year, M&S spun off its lingerie segment into a separate format, while launching its first standalone over 5,000 square foot lingerie and beauty store in Mumbai. Globally, lingerie is the third largest contributor to M&S’ sales. Of the 50 new stores it aims to launch, 19 will be lingerie and beauty stores. India and Saudi Arabia are the only markets where M&S has such standalone stores.

With an aim to be the most sustainable retailers across the world, the company wants to take its learnings from India to replicate it in other global markets. In India, the focus has also been on turning all its outlets in the country on the lines of its Delhi store which already holds ‘Leadership in Energy and Environmental Design’ (LEED) gold standard and the Bangalore store that has a silver standard developed by US Green Building Council.