Gap and Arvind team up to open stores in India

As speculated earlier, American lifestyle brand Gap has formally announced its partnership with Arvind Lifestyle Brand to open franchise-operated Gap brand stores in India. The first stores offering the brand’s summer 2015 collection for adults, kids and babies are expected to open in Mumbai

and New Delhi in 2015. The brand plans to open about 40 franchise-operated Gap stores in India.

“India is an emerging, vibrant market and an important next step in our global expansion strategy,” said Steve Sunnucks, Global President of Gap, while

announcing the brand’s India plans. The company feels that as the world’s second most populated country with more than 1.2 billion people, India represents an important platform to bring American casual style to consumers around the world. Gap operates both company-owned stores and franchise stores around the world. The retailer has company-operated stores in the US, Europe, Hong Kong, China, Japan and Taiwan. Gap ended fiscal 2013 with 3,164 company-operated and 375 franchise stores around the world, it said in its annual report. The decision to enter India through the franchise routes comes after almost a year of discussions.

Gap is cashing in on India

The San-Francisco-based company was also rumoured to be in talks with online shopping portal Myntra to launch the brand’s online store in India. The US retailer already sources denim from Arvind for many years. Meanwhile, Arvind has entered into a franchise agreement with The Children’s Place, the largest pure play children’s specialty apparel retailer in North America. Arvind Lifestyle Brands is expected to open 50 stores over time beginning in the fall of 2015.

In 2007, Gap launched the P.A.C.E. (Personal Advancement & Career Enhancement) workplace education program in India with one vendor in two manufacturing units. The program offers female garment workers the life skills education and technical training they need to advance at work and in life. Currently 25 of the 64 manufacturing facilities that participate in the program are based in India. Since launching its first franchise-operated store in 2006, Gap Inc. has quickly expanded the international reach of its brands, which now includes almost 400 franchise-operated stores along with about 3,200 company-owned stores.

After acquiring India operations of three major international apparel brands Debenhams, Next and Nautica, Arvind had signaled at its strategy to grow big in the organised apparel market to cross a one billion dollars (over Rs 6,000 crores) mark. Arvind Lifestyle Brands, subsidiary of Arvind, which already has an impressive brand line-up comprising Tommy Hilfiger, US Polo Assn, Elle, Geoffrey Beene, Arrow among others. Arvind recently joined hands with PVH Corp, the owner of the Calvin Klein trademarks worldwide to handle expansion and enhancement of the existing Calvin Klein Jeans apparel and accessories (including belts, bags, and small leather goods) and Calvin Klein Underwear (including sleepwear and loungewear) businesses.