Almost 20 foreign brands set to enter India 2023
In 2023, India is set to witness an unprecedented influx of international brands seeking to tap into the burgeoning and diverse consumer market of the world’s second-most populous country.
Almost 20 foreign brands spanning various industries, including retail, technology, fashion, healthcare, and food and beverages, are poised to establish a significant footprint in the Indian market.
This strategic move by international companies indicates India’s growing status as a prominent global investment destination, bolstered by its vast consumer base, progressive economic reforms, and steady GDP growth.
In the face of challenges such as navigating regulatory frameworks and adapting to local consumer preferences, these brands are set to bring a fresh wave of competition, innovation, and choices for Indian consumers.
This significant development will likely have wide-ranging impacts, including reshaping market dynamics, influencing consumer behaviour, and contributing to the overall growth and globalization of India’s economy.
As we proceed, we will delve into the specifics of these brands, their target sectors, strategic plans, and the potential challenges and opportunities in their India journey.
According to analysts, one of the main factors attracting global companies to India is the country’s appealing retail sector, rising wealth and changing customer preferences.
Twenty global brands are expected to join India in the next six to eight months, according to retail consultants and experts, which would likely increase retail activity in the nation. In the years before the epidemic, India would receive roughly ten foreign brands each year.
The main factors driving global companies’ interest in India are the country’s appealing retail sector, rising wealth, and changing customer preferences. Additionally, significant conglomerates like Reliance and Aditya Birla are amenable to collaborations with international companies; Reliance Brands, a division of Reliance Retail, is the most active of the group.
The retail mood is harmed by the downturn and recessionary fears seen in the world markets. In contrast, India’s retail mindset is positive despite food price challenges. According to Abhinav Joshi, head of research for India, the Middle East, and North Africa at consultant CBRE, spending on non-essential categories would also rise as the holiday season approaches.
According to research issued by the consultancy on Thursday, domestic and foreign brands were the driving force behind India’s retail leasing activity, which increased 24% year over year in the first half of CY2023. With overall retail leasing estimated to reach 5.5–6 million square feet by the end of CY2023, it was predicted that the second half of the year would likewise have a high double-digit rate of increase in terms of leasing activity, coming in second only to the peak of 6.8 million square feet recorded in CY2019.
Brands such as American sportswear and footwear company Foot Locker, British luxury brand Dunhill, Dubai’s Brands for Less, Old Navy and Banana Republic from Gap, Chinese brand Shein, Maison De Couture from Valentino, Spanish luxury brand Balenciaga, EL&N, a UK-based boutique cafe, Galleries Lafayette from Paris, K, and Armani Caffe are among those considering entering the Indian market in the coming quarters.
Unless Galleries Lafayette, which has a partnership with Aditya Birla Fashion and Retail for its debut in India, most other brands are either in talks with Reliance Brands (a division of Reliance Retail) or have ties to it, according to people in the know. For their launch into India, brands including Balenciaga, EL&N, Shein, Gap’s Old Navy and Banana Republic, Armani Caffe, and Maison de Couture from Valentino have partnered with Reliance Brands. Reliance Brands executives could not be reached for comment right away.
Before extending to additional cities like Pune, Ahmedabad, Chennai, and Kolkata, the majority of these firms want to establish a presence in the towns like Mumbai, Delhi-NCR, Bengaluru, and Hyderabad in the initial phase of launch.
According to Devangshu Dutta, CEO of Gurugram-based consultancy Third Eyesight, “The India retail opportunity is compelling that most foreign retailers don’t want to miss.”
“Some older brands, particularly in the quick fashion, have also seen success. As people’s disposable incomes increase, this shows that brand awareness is rising and that they are willing to spend on international goods, the expert claims.
After opening 10 locations in the north during the previous four years, Japanese fast fashion company Uniqlo said on Wednesday that it would open two new stores in Mumbai in October. Tomohiko Sei, the firm’s chief executive officer, said that while the retailer was open to entering other markets and creating new stores, it will initially concentrate on Mumbai.
According to CBRE, Mumbai’s retail leasing increased by 14.6% yearly in the first half of CY2023 due to multinational companies’ efforts to rent space there. In the first half of the year, retail leasing in Delhi-NCR increased by 65% yearly, driven by domestic and international brand retail activity.
