MP Rana
About 37 foreign brands have already entered the Indian single-brand retail sector, since last one and a half years. This was when the route of FDI in this area was opened. Yet another dozen of them are looking forward to do the same.
This is a respite amidst the string of negative information that has been coming lately. The international brands are continuously eyeing on gaining such opportunities in India.
Though the starting in 2006 was a bit sluggish but it picked up significantly after a declaration from government to increase the FDI investment up to 51%. Benetton India’s MD Sanjeev Mohanty says that India has retained its strong position owing to the growth prospects and opportunities in it. The opinion is backed by the statistics, which show the entry of a number of foreign names making their presence felt in various sectors like fashion, footwear, apparel, sports equipment, watches. Among the ones to get the permission much early were names like Nike, Lee Cooper, Fendi, LLardo and ETAM. Fashion brands such as Armani, Louis Vuitton, Salvatore Ferragamo, Dolce & Gabbana. The sports retailers who entered the are S Oliver, Puma and Lerros.
Some of the brands which want complete control over their operations are looking forward for 100% FDI investment to be declared. So, the option of entering the market via an Indian partner is being ruled out.
Another reason for avoiding the ‘Indian Partnering’ route is that continuing a successful collaboration is a difficult task. The belief is evidenced by history, as many such joint ventures have failed.
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