Why global retailers are scrambling for Indian shoppers
Major international clothing brands such as COS, Bershka, Next and G-Star Raw and cosmetics brand Lush entered the Indian market last year. Canadian sportswear brand Lululemon and American contemporary clothing retailer Abercrombie will begin retail operations next year; This is a sign that competition for affluent urban consumers in India is intensifying.
Industry executives said more brands will flock as demand stagnates in many global markets.
Last month, British brand Lush, known for its soaps and bath bombs, returned to India through a licensing deal with Bilberry Brands India.
Vishal Anand, founder and chief executive officer (CEO) of Bilberry Brands India Pvt. Ltd., stating that India remains underserved in key segments, especially accessories and women’s western wear, explained that strong consumer demand has led to more international retailers entering the market.
Demand drivers
“India has historically had fewer international brands than a market of its size. The opportunity is particularly strong in western women’s fashion and accessories, where the global brand offering remains limited. As better quality retail spaces emerge, the market becomes even more attractive to foreign players.” Anand, who previously worked at Myntra and Calvin Klein in India, told Mint.
He said the fashion market has largely focused on men’s western wear for years, with fast fashion brands such as H&M and Zara entering the market only in the last decade.
Lush will open its first store in January and plans to add 10 more stores over the next 18-24 months.
“Our focus is on thoughtfully building the brand rather than expanding it for its own sake. Many global brands have struggled in India, so a calibrated approach is crucial,” Anand added.
Online retailer Tata CLiQ CEO Gopal Asthana said global brands see India as a high-potential market.
The platform is the official retailer of Guess Jeans in India and has partnered with Lululemon for online and offline expansion of stores and dedicated e-commerce platforms, which are expected to go live in the second half of 2026.
“One of our key priorities is to continue to introduce international brands that align with evolving consumer preferences,” Asthana said.
Tata CLiQ Luxury recently partnered with Swiss multi-brand watch retailer TimeVallée to launch its first digital boutique in India and also launched Bvlgari’s first online boutique.
Retail transformation
Asthana said that rising expectations, expanding digital infrastructure and increasing purchasing power, especially among non-metropolitan consumers, Generation Y and Generation Z, are reshaping consumer spending. “Today’s Indian consumers are globally conscious, style-conscious and deeply value originality, heritage and craftsmanship,” he said.
Analysts said premium brands will continue to cater to urban demand, but the bulk of volumes and growth will be concentrated in the value retail segment, which still serves the largest share of Indian consumers.
“But international labels retain strong appeal and aspiration value,” said Naveen Malpani, partner and retail and e-commerce industry leader at Grant Thornton Bharat.
“Early entrants, once focused solely on urban India, are now expanding into tier 2 and 3 markets where the appetite for branded and premium products is steadily increasing,” he said.
India’s retail industry is undergoing rapid transformation due to digital transformation, changing consumer expectations and the growing influence of young consumers. According to Deloitte, the country’s retail market, which was worth $1.06 trillion in 2024, is expected to grow to $1.9 trillion by 2030, at a Compound Growth Rate (CAGR) of 10%.
More than 750 new stores were opened across the country in 2024, and investments were made over 2024. ₹12,000 crore (approximately $1.38 billion). It is a fashion and apparel-oriented activity and contributed to 31% of retail rental in 2024.
The rush of foreign retailers into India contrasts sharply with indifferent growth prospects elsewhere. Swedish retailer H&M plans to close 200 stores worldwide. But he described India and Brazil as big “opportunities”.
Brand strategies
Of course, in the past many foreign retailers have struggled to maintain their operations in India, often due to disputes with local partners or expansion before the market is mature enough.
Aided by social media, the growth of online retail and better quality real estate, Indian consumers now show a strong appetite for branded products.
Bengaluru-based Ace Turtle, the exclusive licensee of global brands Lee, Wrangler and Dockers for India and other South Asian markets, recently signed a long-term licensing agreement with WHP Global to launch its denim brand G-Star in India; This marks the premium brand’s comeback to India after over a decade.
“India’s opportunity stems from a clear consumer movement: first from unbranded to branded fashion, and then from branded fashion to more premium, premium and lifestyle-focused wardrobes,” said Ace Turtle CEO Nitin Chhabra.
“As incomes rise and fashion awareness deepens, consumers are actively seeking upgrades not only in terms of labels but also in terms of fit, quality, sustainability and brand experience. For international brands, this creates a long runway for growth across many tiers of the market,” he said.
The entry of global fashion brands is a trend that will likely continue for years, he said.
“We see significant room for growth in the premium fashion and lifestyle segment and continue to actively work on bringing more global brands to our portfolio when they align with our strategy. Our focus is to identify labels with strong global equity, a differentiated product offering and long-term relevance for Indian consumers. As the market evolves, brands with a clear identity and engaging storytelling will find a deeper resonance here,” Chhabra added.
Earlier this year, Spain’s Inditex Group, which operates Zara, expanded its footprint in India with the launch of Bershka at the Phoenix Palladium in Mumbai. Unlike Zara and Massimo Dutti, which operate through a joint venture with Trent Ltd, Inditex launched Bershka directly in India. Zara India reported the following revenue in fiscal 2025: ₹2,782.06 crore, flat from the previous year.
Bilberry’s Anand said such launches would intensify competition and increase price sensitivity, “but there is definitely a need for more options.”
Last December, Myntra, Abercrombie & Fitch Co. It announced a multi-year franchise partnership with Abercrombie & Fitch and Hollister stores in India.
Last December, Myntra, Abercrombie & Fitch Co. It announced a multi-year franchise partnership with Abercrombie & Fitch and Hollister stores in India.
Venu Nair, Myntra’s head of strategic partnerships and omnichannel, said: “India is arguably one of the most attractive growth markets for global lifestyle brands, driven by rising disposable incomes, rapid premiumization and growing demand from tier 2 and tier 3 cities. At Myntra, we actively connect 450+ international brands to our 75+ million monthly active user base spread across the country.”
Global brands are accelerating their move to India
Some of the largest global brands have significantly stepped up their efforts to tap into India’s vibrant consumer environment. UK fashion giant NEXT, available on the Myntra platform, opened its first store in Pune in September. Myntra Jabong India Pvt Ltd (Myntra’s B2B wholesale organization) along with its licensed franchise partners in key cities of India, including Hyderabad, Delhi, Mumbai and Bengaluru, plans to expand access to its classic collections through a total of approximately 50 outlets over the next 5 years.
“The wide gap in Generation Z fashion, premium womenswear and global beauty reaffirms that India will be at the center of the international expansion strategy for global fashion, beauty and lifestyle brands. As the e-lifestyle landscape evolves, we will continue to build a strong repertoire of global brands to meet the changing needs of our customers,” Nair said.
Swedish retailer H&M has launched its beauty range in India and opened the first store for its luxury brand COS in Delhi. In an interview with Mint, H&M Group CEO Daniel Ervér identified India as one of the brand’s most important global markets.
