Foreign brands head to India amid global woes
As tariff jitters cloud growth prospects in big markets such as the US, which risk stoking inflation and impacting consumer spending, India is increasingly emerging as a sweet spot for foreign brands.
From Spanish fast fashion brand Bershka to Korean skincare player Sungboon Editor, global brands are eyeing India, where a young, tech-savvy population is changing the way households discover brands and shop. The trend picked up post-pandemic, and the momentum continues despite global uncertainty.
Earlier this week, Canada's Lululemon announced its India foray (launch in H2 2026), joining a rush of brands plotting an India entry.
As brands wait for the tariff issue to settle, some of them could delay launch timelines, but the appetite for the market remains intact. Reliance Retail alone launched six foreign beauty brands in India so far this year (rollout of FaceGym, announced recently, will happen by the end of 2025) aside from fashion brand Shein, which made its debut.
No. of brands double
The number of global brands entering India pre-Covid stood at about 12 on an average annually, analysts at Cushman & Wakefield said.
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That number went up to some 14 in 2023 and nearly doubled in 2024, with up to 27 foreign brands entering the market, data from real estate firms showed.
"Given the consumption challenge that we are seeing in developed markets, India is a shining light and has seen a reasonable degree of growth. India's consumption and manufacturing story are different, and brands are keen to enter India," Bharat Mimani, MD & partner at BCG, told TOI, adding that there's more activity in the premium and bridge-to-luxury segments, at least in fashion.
"The spending capacity of Indians at the premium end is quite sizeable, and brands are increasingly recognising that. From the supply side, there are uncertainties, but most large export companies are holding a positive outlook given progress on FTAs with different countries," Mimani said. Multiple global fashion brands have sourcing partnerships in India today, and those that do not intend to set up local manufacturing hubs helped by their partners once they start scaling up and expanding in the country, added Mimani.
Companies already in the market are widening their footprint - Danish toy brand Lego, for instance, opened its first exclusive store in India earlier this year in Gurgaon after operating in the region since 2020. Expansion, in the case of global brands, underscores new growth pockets they see in a market. "We see long-term potential in India driven by rising disposable incomes, an evolving toy landscape," said Bhavana Mandon, country manager at Lego India.
Digital gateway
The rise of online platforms like Tata Cliq, Myntra, and Nykaa has helped brands reach more customers in India, where the availability of real estate can be a challenge and push entry products like perfumes and accessories. Chanel Beauty and Fragrance tapped into Nykaa earlier this year to broaden access. "While metro cities are key markets, we are also seeing growing demand for global brands from non-metro markets," said Gopal Asthana, CEO at Tata Cliq, which is partnering with Lululemon in its India foray.
Venu Nair, head of strategic partnerships and omnichannel at Myntra, which will be launching American clothing brands Abercrombie & Fitch and Hollister in India soon, said that rising affluence, Gen Z customers, and growing demand for global trends are fuelling this momentum. Global brands now want to understand the Indian consumer and are strategising accordingly, said Kashika Malhotra, CMO at Brandman Retail, which distributes On and Saucony products in India and are in talks to bring more foreign labels to the market.
Timing Matters
Brand-building takes a long time, and so labels have to make bets on parts of the world where consumption is going to see a secular increase in the next many years. Between 2014 and 2024, emerging markets accounted for 60% of total global consumer products sales value growth. That's going to be 75% in the next decade," said Nikhil Prasad Ojha, partner at Bain & Company. The timing to enter a market is determined to an extent by geopolitical issues, but right now, India seems to be on the right side of geopolitical shifts in terms of being in the sphere of acceptability to western multinationals, Ojha added.
Besides, the local retail sector is moving away from old-school shopping malls, instead turning these assets into experience destinations. This change is particularly attractive to foreign retailers who are keen on crafting unique experiences for Indian consumers, said Anuj Kejriwal, CEO & MD at Anarock Retail. The challenge for global brands in India, however, is to grow beyond a certain point. Many have not yet touched Rs 1,000 crore in revenues, said Ankur Bisen, senior partner at The Knowledge Company.
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