FDI move brings good news; let’s dream of H&M, Gap already!
Fashionistas, it’s time to celebrate and you’ve got the government to thank! The folks in Delhi are allowing 100% FDI in single-brand retail and soon it will open a whole new world of brands for us. (FYI, before you get confused: only the proposal to allow 51% FDI in multi-brand retail has been put on hold).
So what’s the good news exactly? Ladies, what this means is that single-brand retail stores in India can soon be completely owned by foreign companies or people. So foreign brands which were reluctant to come to India because of investment restrictions, will soon start setting up shop here!
The foreign brands already here have set up in India through franchises, joint ventures and partnerships with local companies. But a large number of well-known brands want to avoid dilution of their brand at any cost. The store needs to look like this, the stock needs to be displayed like that, the prices should be this, the employees should be like that, etc. And they’d rather not open a new shop than partner up with someone or give up 0.00000001% control of the company.
So once Parliament approves this regulation in the winter session, international brands can roll up their shirtsleeves, chalk up their India plans and get moving.
Some fashion brands who may want to come to India:
- Topshop and Topman (from Aracadia Group, UK)
- GAP and Banana Republic (tshirts, hoodies and more!)
- Prada (dump the lame ‘Prado’ and let’s line up for their bags already!)
- Hennes & Mauritz (aka H&M—amazingly fast and affordable fashion)
Which international brand are you waiting for?