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12 July 2022, Mumbai:
Reliance Retail has brought the American fashion brand Gap to India. Reliance Retail’s formidable presence is expected to aid Gap in quickly scaling up its product distribution network in the country.
However, the American specialty apparel company needs to strike a balance between brand image and pricing strategy to make a compelling proposition for the price-sensitive Indian consumers.
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Gap can leverage Reliance’s manufacturing capabilities to produce goods for the Indian market instead of importing them, thereby lowering prices and reducing potential disruptions due to supply chain issues. This should enable Gap to attract the value-driven Indian consumers.
Gap opened its first store in India in May 2015. But gained little traction, with the country contributing less than five per cent to overall value sales in Asia. By late 2020, Gap terminated its franchise agreement with Arvind Fashions and permanently closed all stores in India. Reliance Retail now plans to introduce Gap’s apparel offerings in India through a multichannel strategy, comprising exclusive brand stores, multi-brand stores, and online sales.
The Indian apparel market is forecast to grow at a 6.8 per cent compound annual growth rate due to the rising middle class, growing urbanization, and youth affinity for western clothing and accessories.
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