New Delhi: Some experts assert that poor governing decisions, inferior quality, and slow economic growth are impeding the expansion of foreign retailers in India.
Challenges Ahead The next several years are expected to be challenging, as the supply of material remains constrained. Although some foreign retail groups have utilized space in new developments, anticipating further supply crunches, only a few are proceeding cautiously due to the sluggish economic climate.
Expansion Plans International brands are keen to expand in the country but are doing so with caution. Foreign brands such as Swarovski, Jack N Jones, Only, Vero Moda, Tommy Hilfiger, Levis, Louis Philippe, Puma, Nike, Voi Jeans, Marks & Spencer, and Calvin Klein, among others, are currently operating in the Indian market.
Market Interest There is substantial interest among foreign brands to expand; however, due to the volatility in the Indian market and an unclear future outlook, they are focusing solely on top-tier cities.
Vacancy Levels and Local Brands Vacancy levels in some poorly located malls are high, and a few developers have shut down. Developers expect returns for brands; if these are not achieved, the retailer may be asked to close. In such a crisis, only local brands can survive.