Retail shops realized the potential of the textile industry a long time back. A number of apparel retail shops cropped up all over the world. Marks and Spencer, Calvin and Klein, Gap, C&A, Walmart, Zara, Mango, and others are the biggies of this industry! The global apparel retail industry was worth $1031.5 billion in the year 2009. It is expected to reach a value of $1162.8 billion by the year 2014.


These retail giants were mainly focused on the European and US markets. But the scenario started changing considerably in the last decade. Emerging fashion economies like India have succeeded in attracting the attention of these retail biggies. They have been tempted to invest in India and have also reaped benefits out of it. India is gradually becoming a world fashion capital and retail stores are capitalizing on this fact.


India is on the path of development. It is expected to become a superpower in a few more years. The standard of living of the people in the country is rising along with the growing economy. People are getting more conscious of the standard of living they maintain. They expect good food, good quality clothes, and bigger houses with all the facilities. They are willing to spend any amount of money to get this.


Fashion is one such "want" that has become a "need" for Indians. India is fast emerging as a fashion capital of the world. Fashion industry in India is worth almost `200 crore at present and is expected to reach `1000 crore within a few more years. Indian retail industry is expected to grow by 7 percent in the years to come. It is the most preferred destination of global apparel retail giants.


Nielsen Global Luxury Brands Study indicated that Indians are among the most brand conscious people in the world. Consumers are largely aware of the pros and cons of each brand and prefer to wear good quality, branded clothes. In this study, 35 percent people reported to wearing branded clothes. Indians would prefer international brands to Indian brands if given a better deal. Retailers find this a plus-point for their market.


Besides, the idea of simple living and high thinking are gradually vanishing from the market. People are desperate to flaunt what they have and branded clothes are one of the many ways to do it. Purchasing from certain retail stores have become a status symbol and Indians are getting increasingly conscious of their status. International retail stores are cashing in on this mindset. Of course, they provide services accordingly!

Government support in terms of promoting international retailers has not been up-to-the-mark. But associations and corporations have worked immensely to make people aware of the benefits of luxury goods. International retailers get to sponsor the various shows organized by companies and designers. This way they get to make their impression in the mind of the localities. These companies and designers also promote India in terms of fashion abroad and attract foreign investment.


But, government support can now be expected. Indian government is all set to implement Foreign Direct Investment (FDI) law in the country which will enable renowned retailers of the world to open their retail stores directly in India. Government is about to approve 51 percent stakes in multi brand retailing. This may strengthen the retail scene further in the country as foreign retailers will get to enjoy ownership.


International retail stores of high repute like Walmart have always seen India as an attractive market. This law will make sure that they get to reap maximum returns for their investment. Besides, it will also give them more powers as a business house. Such a law will attract the attention of major retailers from across the globe. They will bring their technical expertise and money to invest in Indian markets.


The biggest advantage of trading in Indian market is its size. Retailers can get to market their products and services before a large population. Chances are that they may see more sales here as compared to any other country of the world. Besides, being an emerging fashion economy, it is easy to make people buy apparel and clothing in India. Retailers understand this fact and try to creep into the market to increase overall sales.


Though the need to promote local industries is felt in the country, India welcomes foreign brands and retailers with an open heart. It understands that this will bring foreign revenue to the country. Besides, it will also encourage localities to carry out research and make their retail stores as competitive as the foreign retail brands. International retailers are getting magnetized by the efforts made by India in this direction.

International retail stores see the huge potential that Indian markets hold for their business. This is the reason they are cashing in on any opportunity they get to trade in the country. It is an attractive destination for the world retail giants. This fact cannot be denied! It is the fifth most favorable destination for international retailers. Apparel and textile industry in India may grow by 11 percent to reach `10, 320 billion by 2020.


References:


  1. Ntutrump.wikispaces.com
  2. Franchiseindia.com
  3. Ibef.org
  4. Grailresearch.com
  5. Economictimes.indiatimes.com


Image Courtesy:


  1. Vinodksharma.blogspot.com
  2. Strapping-solutions.com
  3. Indiaretailing.com