India's retail sector is emerging as a lucrative market, attracting many global brands and retailers eager to expand their footprint. The Indian market is currently the fourth largest in the world. As of 2022, its retail market size stood at an impressive INR 91,891 billion, contributing over 10% to the nation's GDP. This growth trajectory is expected to continue, with projections indicating a CAGR of more than 13% by 2027.
Tier 2 cities are also witnessing increased discretionary spending and footfalls. Uniqlo opened its first store in Chandigarh, Tim Hortons entered Ludhiana, and Starbucks, Biba, and Shoppers Stop have expanded into Dehradun. Let's dive into the latest trends shaping the future of retail in India and highlight the global brands set to debut in the country over the next two years.
Factors Driving Retail Growth in India
Several factors are influencing the growth of the retail sector in India. Infrastructure development, economic growth, and changing consumer demographics are key drivers. Additionally, strategic store locations, effective management, and competitive salaries for personnel are contributing to the sector's expansion.
Recent trends highlight a surge in retail leasing activity, particularly in the fashion and apparel sectors, reflecting growing consumer confidence. Technological advancements and experiential retail are reshaping the landscape, offering personalized experiences and hassle-free services.
The rise of e-commerce and the increasing adoption of digital payment methods are also crucial. For instance, Aditya Birla Fashion and Retail Ltd (ABFRL) has partnered with Galeries Lafayette to open luxury departmental stores and a dedicated e-commerce platform.
10 Global Brands and Retailers Entering India
India's retail market attracts many international brands eager to tap into its vast consumer base. Here are some of the notable global brands and retailers planning to expand into India in 2024-2025:
- Pull & Bear and Bershka: These Spanish apparel brands from the Inditex group, known for their trendy fashion offerings, are set to enter the Indian market.
- Sandro and Maje: French luxury fashion brands under the SMCP group will bring their chic and sophisticated styles to Indian consumers.
- Foot Locker: The American footwear retailer is expanding its presence and offers a wide range of athletic shoes and apparel.
- Tiffany & Co.: The iconic American jewelry brand is partnering with Reliance Brands Limited (RBL) for its Indian debut.
- Gucci, Cartier, Louis Vuitton, and Balenciaga: These luxury brands have already opened outlets at the Jio World Plaza in Mumbai, catering to India's growing appetite for high-end fashion.
- Asos: The British online fashion and cosmetic retailer is set to offer its extensive range of products to Indian shoppers.
- Old Navy: This American brand is known for its affordable and stylish clothing, and it is making its way to India.
- Galeries Lafayette: The French department store chain plans to open luxury stores in partnership with Aditya Birla Fashion Retail.
- Giorgio Armani Cafe: This Italian luxury brand will introduce its café concept, blending fashion and dining experiences.
- Shein: Reliance Retail is reintroducing Chinese fashion company Shein to the Indian market
Additionally, AstorMueller, which retails brands like Bugatti and Bagatt, anticipates India becoming its largest market within five years.
