Fossil to enter India on its own

After Sweden’s Ikea and UK’s Pavers, US accessories manufacturer Fossil Inc is the third

international retailer to have applied to the Indian government for permission to enter the market through a 100 per cent owned operation. Fossil already has a distribution agreement to sell their watches, jewellery, handbags and leather goods in India. US-based Fossil Inc has proposed to invest Rs 20 crores (about $4.5 million) in India in a fully owned single brand retail venture. The proposal, made by Fossil India, a 100 per cent subsidiary of Fossil, is being examined by the Department of Industrial Policy and Promotion (DIPP).

With over 390 stores worldwide and a strong global e-commerce business, Fossil is globally known for its eclectic assortment of lifestyle and accessory items including watches, handbags, and clothing. The company also creates fashion accessories for a number of other owned and licensed brands including MICHELE, Zodiac, Relic, Emporio Armani, DKNY, Armani Exchange, Michael Kors, Diesel, Burberry, Marc by Marc Jacobs, Adidas, Skagen Denmark, and Karl Lagerfeld.

After the Indian government gave a nod to 100 per cent FDI in single brand retail, many global brands are studying the fine-print before taking a call on the Indian market. On the other hand the 30 per cent mandatory sourcing norm from SMEs was considered major road-block to their entry and now the decision over this rule would be taken on case to case basis.