INDIA: Esprit Sees "Tremendous Opportunity" In India

By just-style.com | 28 February 2005

Peter Hammond, Esprit Asia regional director, has described India as the largest single-country retail opportunity in the next decade.

Speaking at a retail conference in New Delhi, Mr Hammond compared the developments and the state of the market in China and India.

Drawing liberally from Esprit's experiences in China, Mr Hammond pointed out that the population was not only large but also actively embracing globalisation, the large number of cities, the extensive presence of local brands, the explosive development of retail infrastructure, and the change in the government's mindset towards international companies.

However, he was also quick to point out that India had some critical advantages over China, including the lower legislative restrictions to growth, the presence of a large and diverse middle-class (albeit with low average incomes), and the extensive travel by Indians between their own country and western markets, which helped build a base of brand awareness for international companies.

This will make even faster growth possible in India than companies have seen in China, he said.

He cautioned companies looking to enter new markets against compromising their international recipe by localising their brands, and also against trying to build store traffic by reducing prices.

Mr Hammond reiterated several times that he did not perceive international brands to be a threat to local brands.

Instead, he felt Indian companies would learn from international competitors and improve their businesses by doing so. He quoted the example of Giordano in Hong Kong, which he said had actually grown in stature and size by being forced to compete with brands from around the world in its home market.

Sectors: Apparel, Retail

Companies: Esprit