International Clothing Brands Enter India Market

Now the international clothing brand has landed in the India market, and at the same time erected an image in the eyes of consumers. Global brands such as Diesel, Zara, YISHION, Vero and Moda have opened sales stores in India in the past few months.

In May this year, the Spanish fashion brand Zara opened its first India store. A month later, China's clothing giant YISHION (Yishion) opened its first India store in imitation of Zara. Subsequently, at least three global brands (Diesel, Vero Moda and 7ForAll Mankind) opened their first India store this year.

According to Technopak, a retail consultancy, in the next five years, the high-end fashion retail sales will grow by 25-30% annually from the current US $20 billion to US $60 billion. After the India market opened to foreign brands in 90s, many fashion and fashion retailers opened stores in India, but their product prices exceeded most consumers' spending power. The aim was to keep the brand's superior prices, which led many brands to close the India business.

This time, however, fashion retailers focus on brand positioning and pricing. They look at the identified India consumers and compete to divide up a larger share of the fashion and clothing market in India. India media Fibre2fashion interviewed Mr. Shobhit Tyagi, head of Human Resources Department of ArvindLtd, a vertically integrated large textile enterprise. He expressed his views on the reasons for the spread of global brands in India and why they were competing to keep prices down.

He said: "from the point of view of purchasing power parity (PPP), India's economy is the fastest growing economy, and foreign brands will inevitably enter the India market. Foreign brands have been lobbying to change India's FDI policy to ensure the employment of Indians. At present, single brand retail is allowed to have 51% foreign capital, which allows India's wholesale shopping mall (B2B) wholesale (indirect retail) to have 100% of foreign capital.

"The world's top multi brand retailers in the US and Europe, such as Carrefour, Metro, Wal-Mart Store Inc and Tesco (Tescoplc), have launched an ambitious development plan in India. With the increase in the income of the middle class, value retailers are marching towards high-end brands, which may further stimulate and promote the development of foreign brands in India.

In addition to cost and quality pressure, India brand must find the right location and the right area before foreign brands are suitable for Indian tastes. The Spanish fashion brand Zara and China YISHION brand enter India, making India brand face more intense cost pressure. Undoubtedly, these brands will occupy India market, otherwise these market share will become the bag of India brand.

"But India still has the cost advantage," he said. The cost level of foreign brands is difficult to compete with the current cost structure in India. However, due to low productivity and rising labor costs, India may suffer losses. "