GAP revives India plans

American clothing giant GAP is planning to revive its plans to enter the Indian market. The company’s

senior vice-president for international strategic alliances, Ron Young, was recently in India on a fact-finding mission suggesting that the company plans to set shop here.

GAP’s team has shortlisted prominent Indian apparel makers, including Reliance Brands, Aditya Birla Nuvo-owned Madura Garments and the Future Group. However, no agreement has been sealed yet. According to industry officials it seems likely that GAP is serious about entering India as the company’s recent visit was centered on studying the options it has in tapping into this market. The company has also conducted a recce of potential retail real estate across Mumbai, Delhi, Bangalore and Hyderabad.

As foreign direct investment up to 51 per cent is permitted in single brand retail, GAP would choose to partner with an apparel firm having deep pockets to power a credible presence for the two brands in India. The US giant is evaluating the Indian market at a time when its Spanish fashion rival Inditex is poised to open Zara stores through a joint venture with Tata Group’s retail arm, Trent. GAP is likely to adopt more of a premium strategy in India, slightly above the brands’ positioning in the US.

A few years ago, the company was reportedly in talks to enter the country but that did not come through. India is not a new market for the retailer as it serves as a strong sourcing destination for GAP through tie-ups with multiple garment exporters, including Bombay Rayon Fashions, Gokaldas Images and Orient Craft.