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Why Gap waited 5 years before deciding to enter India

Why Gap waited 5 years before deciding to enter India
Entertainment2 min read

The first Gap store will open in New Delhi on May 30, and with it India’s retail market is expected to see dramatic changes, for Gap is one of the world’s most iconic brands. The launch proves India’s growing market strength for foreign brands.

“Last time I visited India in 2010, I saw the market and went back. The weak market was not favourable for foreign brands. There were not too many malls and the market response was not good,” Stefan Laban, Senior Vice President of Gap told BI India.

He also added that the company was not able to find good partners for the Indian market, which made them defer their plans to enter the Indian shores. “The infrastructure was not good. But now, we have entered into a 20 year long partnership with Arvind Lifestyle and we see ourselves doing well in the Indian market,” said Laban.

India’s changing FDI norms have helped immensely in building up such strong markets for global brands. Though Stefan is quite optimistic about the growth of Gap in India, but he added that it is too early to predict any definite results.

In fact there has been a tremendous growth in retail industry since 2013. India’s retail market is expected to double to US $1 trillion by 2020 from US $600 billion in 2015.the industry is driven by income growth, urbanisation and attitudinal shifts.

Also, right now there seems to be not much competition for Gap in India.

“We see every brand in India as a competition. We don’t see any particular brand as a competitor right now. We have been encouraged by the positive response from our launch efforts thus far. We are looking forward to providing a unique branded shopping experience across India,” said Ismail Seyis, Vice President of Gap Franchise.

With Modi’s Make in India campaign on the run, will Gap really find a suitable market now is yet to be seen. Though they don’t have any plans of local outsourcing at present, but the idea is kept on the stack for future.

(image credits: Gap Inc and Arvind Lifestyle)

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