The legacy of the 1990s liberalisation has been carried on for years now. Now, be ready to see new stores appear in your malls as 50 global retailers venture into the Indian market in the next six months. Thanks to Franchise India Holdings. By Jasmine Kaur
What has led to this rapid change?
Relaxed FDI rules for one. The boom in the Indian economy has made it a lucrative market for foreign investors. Lifestyle brands from the US and Singapore are planning to invest US$300-500 million for this.
What’s to look out for
“The first retail wave happened a decade ago when bigger retailers and brands entered India,” said Gaurav Marya, Chairman of Franchise India Holdings. This time, they are giving a chance to small and mid-sized brands. So keep an eye on Korres, Migato, Evisu, Wallstreet English, Pasta Mania, Melting Pot, Yoghurt lab, Lush Addiction etc. There about 18 in the food and beverage space along with 13 each in apparel, lifestyle, and education brands.
What’s their target?
Since they are smaller brands, they are planning to cash in on the untapped smaller markets to accelerate e-commerce in the country. Most of the brands are concentrating on Tier 2 & 3 cities. About 3000+ stores will attempt to make their brands the top of the mind recall in the next six months.
How can the GST bomb impact it?
As the iconic Goods and Services Tax (GST) rolls out on July 1, it will help these companies avoid cascading tax rates, driven by the single-retail investments spurred last year. The government’s decision to allow 100% FDI in B2B e-commerce and food retailers has been speculated to boost the investor sentiment in India.
What’s in for shoppers?
It’s a gala time for shoppers as retailers slash 40% prices on various commodities. And wait till these mid-rung global retail chains dive into the same game. We bet your credit cards will max out.