Northeast Calling: High-end labels eye the seven sisters

India’s Northeast region is emerging as the latest destination for upscale apparel and accessories labels. Many top brands are rushing to take advantage of the growing demand in states such as Assam, Tripura and Manipur. From the makers

of sports and fashion wear to branded jewellery chains, retailers are heading to the seven sisters either to open their stores or expand their retail footprint.

Take s.Oliver Fashion India for example, it runs the s.Oliver stores across India, and has been receiving queries from potential franchisees in cities such as Shillong, Guwahati and Siliguri. By mid-2013, the company is looking at venturing into this untapped market. It may be recalled that the premium German apparel brand had entered India in 2007.

The Northeast, home to a combined 45 million people as of 2011 Census, comprises of the states of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Sikkim and Tripura. A good pace of economic growth in recent years has increased the purchasing power of people in the region. While the average rate of growth in gross state domestic product (GSDP), a measure of state-wise economic output, was 6.88 percent in 2011-12, some Northeastern states grew faster. Assam’s economy grew at 8.42 percent, Tripura’s by 8.87 percent and Meghalaya clocked in growth of 9.54 percent reveal Planning Commission figures.

Louis Philippe, the men’s brand from Madura Garments that sells apparel, shoes and accessories, started test-marketing its collections in the Northeast one-and-a-half years ago with a store in Guwahati. Now it is looking at opening more stores in the region. Similarly jewellery chain Tanishq has two stores in Guwahati and Agartala and is now planning to open three more within this year. Titan, which also sells watches and eyewear under the Titan and Fastrack brands, clocked in sales worth Rs 100 crores in the region last year, up from Rs 12-13 crores five years ago.

A research done by Nielsen shows, the Northeast accounts for 3.8 percent of India’s personal care market, in terms of value, but is growing at a yearly pace of 22 percent —three percentage points higher than the national average. No wonder then that even fashion retailers and consumer goods companies are planning retail strategies in the area. New Delhi-based DLF Brands, which represents brands such as Forever 21, Mothercare and DKNY in India, too is mulling entering the region in the next one year.