Sharma clarifies dilemma over sub-brands

Clarifying doubts over global brands like Marks & Spencer, Zara

and others selling sub-brands in their stores, commerce and industries minister, Anand Sharma has said that global single-brand retailers will be able to sell their flagship as well as sub-brands from their stores in India. On the other hand, he expressed that the country might welcome its first foreign multi-brand retailer before forthcoming general elections. However, industry experts feel that the foreign brands and retailers will only enter post elections.

After UK-based retailer Marks & Spencer (M&S) came under the government's scanner for a possible violation of FDI policy in single-brand retail that bars investors from selling multiple brands in a single store, many foreign brands are seeking an answer to their dilemma over whether sub-brands fall under single brand or multi-brand FDI. The finance ministry had raised the matter with the DIPP and sought to know if M&S' practice of selling sub-brands was in conformity with the FDI policy.

Keeping the dilemma of foreign retailers like H&M, M&S, Zara and other foreign fashion retailers in mind, the DIPP was reworking the definition of 'single brand' to enable such retailers to continue selling their sub-brands and stay within the ambit of foreign direct investment regulations in single-brand retailing. Sharma’s clarification over the matter hints that the issue has been resolved.

Zara's products are branded as Zara Man, Zara Woman and TRF, the more causal line of clothing, Inditex-owned Massimo Dutti also has different brands of products for men and women, although both brands include the mother-brand's name in the prefix. M&S offers most of its sub-brands, such as Limited Collection, Autograph, Collezione, North Coast, Blue Harbour, Savile Row Inspired, Indigo Collection and Per Una, in its stores across the country. Italian clothing brand Diesel also sells its sub-brand 55DSL in its shops in India.