S.Oliver may exit India

German clothes retailer s.Oliver may exit the Indian market and rework its business plan for the overall Asian market. The prevailing

slow consumer sentiment in India over the past 12 months has forced the retailer to review its local operations. The company is working on possible options for the future, especially in consideration of the still unclear general framework for foreign direct investment.

Foreign single-brand retailers such as s.Oliver are allowed to fully own their Indian units. The retailer sells apparel, footwear and accessories for both men and women through 729 stores globally. It reworked its strategy for the India market by adding more entry-level price points to its existing portfolio, targeting mid-premium shoppers.

It applied brakes in August when it shut two stores, one each in Delhi and Ludhiana, cutting its network to 10 points of sale. S.Oliver first entered the Indian market in 2006-07. It exited its joint venture with New Delhi-based export house Orient Craft in 2012 and formed a partnership with Design Pod. It is still discussing its possible exit with partner Design Pod, which does not want to end the joint venture in which the German company has a 49 percent stake and the Indian firm the remainder.

Consumers across urban India have been cutting down on discretionary spending and even switching to cheaper variants of essential household and personal care items in the face of an economic downturn.