The entry of the world's largest retailer, Wal-Mart, into India seems to be paving the way for others to follow suit.
Steve & Barry's, one of the fastest-growing retail chains in the US, is planning to set up shops in India and China.
Sources said Steve & Barry's had started putting in place a blueprint for the foray, with an initial investment of Rs 500 crore, which is likely to be scaled up to Rs 2,000 crore.
Avirat Sonpal, managing director, Unisource Group, and vice-president, Steve & Barry's, in an email reply said: "Our feasibility studies are under way, but we have no firm plans to enter India and China yet."
The company is looking at forming a core team that will focus on India and China. The first store is expected to be operational by late 2008 or early 2009.
Interestingly, Unisource Group, the global procurement and solutions affiliate for Steve & Barry's retail brand, Steve & Barry's University Sportswear, has its headquarters in Mumbai and has been functional for the last six years in the country.
Unisource procured nearly 25 per cent of its products, mainly knit and woven, from India and this could give significant synergies for the US retailer once it set up shops in the country, the sources said.
"The Indian retail industry is extremely robust and is currently on a growth stage. The number of Indian companies investing in the industry and the attention it is receiving from foreign investors are the proof. However, FDI regulations are still not clear," said Sonpal.
Started by childhood friends Steve and Barry to sell screen-printing T-shirts for $1 at flea markets across Long Island and New Jersey, Steve & Barry's currently has about 220 stores and is looking at adding 70 more this financial year.
Typically, a Steve & Barry's store ranges from 50,000 to 100,000 sq ft. Perceived as a value-for-money brand, the prime focus of this brand is the youth.
Started in 2001, Unisource Group, looks after the support, supply chain and retail operation solutions of its affiliate brand. It sources nearly 25 per cent of its products from India, 20 per cent from China and the rest from Pakistan, Bangladesh and Sri Lanka.
According to consultancy firm KSA Technopak, the retail apparel market is Rs 1 lakh crore and the organised retail market is 20 per cent of that.
The major international apparel and accessory retailers who have entered Indian market include Diesel, Tommy Hilfiger, Esprit, Louis Vuitton, FCUK, Lee Cooper, Escada and Dunhill, which have either entered through the franchise route or under the single-brand retailing route.
