UK India Business Council bullish on Indian market

A recent UK India Business Council’s report, suggests India is a lucrative market for British brands. It says the

‘rapid growth’ of the country’s e-commerce sector and the development of organised retail space, is creating new opportunities for British brands. The report titled ‘Fashion and beauty sector India – market entry opportunities for UK companies’ says British brands are in a good position to sell in the fast-growing market where demand for foreign brands, particularly British ones, is strong. Tier II and III cities are now becoming more accessible for these brands to sell into, the report added.

According to Richard Heald, Chief Executive of the UK India Business Council (UKIBC), over the next two decades India’s middle-class will grow to over 40 percent of population, creating the world’s fifth largest consumer market. So India’s organised retail sector, according to him, presents immense opportunities for UK fashion and beauty companies, which benefit from India’s continuing love affair with British brands and belief.

To date it’s an opportunity that brands including Burberry, Lush and the Body Shop are already taking hold of, however, retailers should be aware of the challenges including India’s complex tax system and regulatory environment, the report said. It further added that a proposed simplification of the tax regime through a proposed goods and services tax was expected to simplify taxation rules, especially for those coming new to the market.

The report, published jointly with Cluttons, was launched recently. Earlier this year the UKIBC also held a discussion on e-commerce, wherein, Samar Singh, President and Chief Executive of Indian e-commerce solutions provider Iksula, said that he envisages a very large opportunity for UK brands to enter India. At the same event, Robert Bready, former Product Director of Asos and now Creative and Retail Director of KOOVs, opined that e-commerce is emerging as a great opportunity for brands currently not available in India. However, he cautioned UK companies to adapt their business model to India since 70 percent of e-commerce customers prefer cash on delivery route.