India's rapid and strong economic development, rising per capita income, and its growing and aspiring population makes the country a favorable destination for multinational apparel brands. Domestic companies are also seeking to grow revenues by bringing more overseas brands to India.
With growing number of Indians travelling abroad, awareness and exposure to luxury products is also higher than ever before. Technopak predicts the Indian domestic textiles and apparel market size to grow at 11 per cent CAGR to touch US$ 146.8 billion by 2020.
The long-term opportunity India presents is encouraging major global apparel brands to carefully consider their strategy for India. For Mothercare, this has meant operating both through a joint venture (JV) with New Delhi-based real estate firm DLF Ltd as well as through a franchisee arrangement with Shoppers Stop Ltd. Of the brands' 54 stores in India, 25 are run by the joint venture and 29 are located in Shoppers Stop outlets. That Mothercare has entered into such JVs only in three (India, China and Australia) of the 54 countries it is present in speaks volumes about the importance it attaches to India.
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