India focus: The market's there, but where are the premium apparel retailers?
Recently, I visited India for a vacation, after about 2 years of being away. The pace of change in India never fails to amaze. Back in my hometown (Indore), many streets are virtually unrecognizable. Malls and stores have opened up all over. People are out to buy with a vengeance. The economy remains strong and growing. One can say that the rich have significant disposable income, and are looking for innovative ways to dispose of it!!
Retailers are cashing in, ..or should be if they aren’t already. For apparel retail, I did see several new domestic apparel brands and a few US / international ones too including a handful of premium apparel brands. Yet, several of the US based luxury brands are conspicuous by their absence. Yes, I get it that India is an emerging economy and US/ Europe based luxury and apparel companies are in a wait-and-watch-mode, but I felt money is being left on the table..literally. There is a significant unmet demand for premium international brands.
A lot of the rich folks in India are a brand conscious lot and also clearly differentiate domestic and international brands. Many buy “imported” merchandise – ranging from apparel, the latest electronics, alcohol, etc – during their trips abroad. Some will even coax and cajole their friends and relatives travelling abroad to get their favorite merchandise. Yet, the number of such transactions is limited by the impracticality. In today's flat world, most are already very familiar with the international brands and the image they convey.
So, I am thinking: “What’s up? Where are the premium apparel retailers?” In a series of blogs, I intend to bring up various dimensions of this issue.
Hope to get your thoughts and inputs.
