Leading apparel brands of the world are planning to enter the Indian market by tying up with top local retailers like Arvind Brands, Madura Garments and Raymond.
"We are in discussion with almost all prominent international brands," said Darshan Mehta, president of Arvind Brands. Hemchandra Zaveri, president of Madura Garments, said a number of international textile brands have contacted the company for a possible business tie-up.
"Some companies have approached us, and several more are looking to make an entry into India," a top Raymond Group functionary said.
KSA Technopak, the city-based retail and textiles consultancy, has been mandated by no less than seven to eight foreign brands to identify a partner in India.
"They are all looking for a retailer with a good brand presence. This is going to be the next big thing," KSA Technopak manager Prashant Agarwal said.
While Tommy Hilfiger, Espirit, Marks & Spencer and Mango have already set up their presence in the country, several others like Armani, Zara and Mothercare are known to be scouting for the right opportunity.
At present, the regulatory environment in the country prohibits these brands from setting up shop on their own as foreign direct investment in retail is not allowed.
This has made tying up with an established retailer the preferred option for overseas brands. (Marks & Spencer and Mango have appointed a local franchisee.) So far, Tommy Hilfiger has tied up with Arvind Brands and Espirit with Madura Garments.
According to industry sources, Armani is also close to signing up with Madura Garments. Zaveri neither confirmed nor denied this.
Industry analysts say that at least another half a dozen licencing deals could happen within the next six months.
In the last few years, Indian customers have been steadily moving up the value chain and this has created a market for such brands.
"The Indian market which has consistently grown at 30-35 per cent every year is a huge opportunity for global players," said Mehta.
