Posted by Warc News on 12 March 2014
NEW DELHI: Swedish budget fashion brand H&M and UK
supermarket chain Tesco are both planning to expand in India, in a sign that
foreign retailers are increasingly targeting the subcontinent's fast-growth
retail sector.
Having received initial approval from the Foreign Investment
Promotion Board last December to invest $115m (Rs 720 crore), sources have told
Livemint that H&M has received regulatory approval to open its first store
in India.
H&M should be in a position to open its first flagship
store there in the first week of November.
Without revealing which city it planned to target, it is
reported H&M hopes to open 50 stores in the country over the next few years
and the sources also revealed it wants to expand into online sales.
In a further boost for international retail brands, a senior
Tata Group official said on Monday that it expected final regulatory approval
for its Trent Hypermarket subsidiary to form a joint venture with Tesco, the UK
supermarket giant.
Noel Tata, vice-chairman of Trent Ltd, said the two
companies planned to open multi-brand retail stores once they received final
approval.
Tesco has proposed initial investment worth $110m (Rs 680
crore) and became the first global retailer to apply for multi-brand retailing
after the government permitted foreign investment of 51% in the sector.
Spanish clothing retailer Zara is already a partner with
Trent. Elsewhere, Japan's Uniqlo and GAP, the US brand, are also known to be
actively seeking to enter the Indian market.
According to a report last month from the Associated
Chambers of Commerce and Industry of India, the overall retail market in India
is growing at 15% a year and is expected to double in value between 2011-12 and
2016-17.
Data sourced from Livemint; additional content by Warc staff
For more theory and case studies on: http://expertresearchers.blogspot.com
For Premium Academic and Professional Research: jumachris85@gmail.com
No comments:
Post a Comment