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Neha Kaushik

New Delhi , Dec. 6

NICHE foreign retailers are making a beeline for the Indian market. In fact, despite the FDI policy pertaining to retail being unclear, over 10 foreign niche segment retailers have recently set up or announced their intention to set up shop in India using the franchisee route, with several others waiting in the wings.

Retailers such as Guess, Esprit, Chanel, Clarks, Mango, Aigner, Bvlgari, Hugo Boss, Mark & Spencers and Tommy Hilfiger have already built a retail presence in the country, while market watchers point out that several more such as Versace, FCUK, Zara, Mother Care, Ikea, Fendi, NEXT, Debenhams, Trussardi, and DKNY have charted out a strategy to enter the Indian market.

Most of the brands entering the market are targeted at the premium end. According to estimates, the premium apparel segment in India is valued at about Rs 1,900 crore and growing at 20 per cent. "All the indicators are pointing in the right direction. India has a considerably young population and the purchasing power is increasing.

In addition, recent estimates show that the super premium market is growing at about 30 per cent annually. For instance, the sale of diamonds in India is growing at about 26 per cent per annum," says Mr Hemchandra Javeri, President, Madura Garments, which recently entered into an exclusive distribution tie-up with fashion brand Esprit. Esprit has launched outlets in Mumbai, Delhi and Bangalore.

Similarly, the UK-based footwear brand Clarks has entered into a franchisee tie-up with Lifestyle India Private Ltd and plans to invest £20 million in India over the next five years to open outlets.

The brand recently set up exclusive stores in Mumbai, Delhi, Bangalore and Ahmedabad.

North India-based Blues Clothing Company has entered into franchisee tie-ups with Italian fashion brands Versace and Cadini and plans to open outlets for these brands shortly. "We have been selling Versace apparel through our own stores. The purchasing power definitely exists," says Mr Abhay Gupta, Executive Director, Blues Clothing Company.

Mother Care UK Ltd, another retailer with a strong European presence, is also gearing up to enter the country in a franchisee tie-up with Shopper's Stop, with plans to set up 40 outlets.

In fact, the Indian retail scene is expected to change considerably over the next year with not only new players coming in, but also with the foreign players operating in India charting out major expansion plans.

Italian brand Benetton recently announced that it plans to double retail space, increase production base and introduce a new brand and other fashion items in India.

The company plans to set up 50 more retail outlets in India, taking the total number of outlets in the country to 100.

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