Asos co-founder “India is gearing up for an explosive increase in e-commerce”
By Kealan Finnegan
Leading figures from retail brands Asos, Superdry and Religion shared their experience of doing business in India at an exclusive event held by the UK India Business Council (UKIBC) and UK Fashion & Textile Association (UKFT) in London yesterday. They highlighted the opportunities that India offers British companies in the retail sector and also highlighted the challenges they faced while doing business in India.
Driven by twin engines of economic growth and favourable demographics, the Indian consumer goods market continues to evolve rapidly, and is predicted to expand by a staggering 20 per cent over the next 5 years to reach over £770 billion by 2020.
Speaking about the Indian market Robert Bready, Creative and Retail Director, KOOVs and co-founder of ASOS, said “There is a real hunger for brands currently not available in India, and barriers to e-commerce are constantly falling.”
“India has a young population and 40 million middleclass households, meaning huge numbers of potential fashion consumers. This is all gearing up for an explosive increase in e-commerce”.
However, he cautioned “UK companies need to adapt their business model to India. 70 per cent of e-commerce customers pay with cash on delivery and the UK’s affordable high street brands need to realise they become premium in India. So they should pitch their brand correctly.”
India’s luxury goods market is also growing rapidly, with Standard Chartered predicting the number of high net worth individuals (HNIs) in India, those with assets of £600,000 or more, to double to over 40,000 by 2015. According to Standard Chartered, there will also be a five-fold increase in India’s per-capita income by 2030, creating a huge market for the UK’s high street fashion brands.
Talking about the practicalities of setting up in India Jamie Lloyd, MD, Religion commented that one of the challenges in promoting the Religion brand in India, with its risky and controversial style, was that “Indian decision-makers are usually 35 plus and do not understand the brand, whereas young consumers in their twenties who do, are willing to pay high prices for trendy clothes. The trick is to make the older generation, your potential investors, see that there is a market there.”
Discussing the future potential for e-commerce in India Samar Singh President and CEO, Iksula India’s leading integrated end-to-end e-commerce solutions provider said “I see a very large opportunity for UK brands to enter India. Online is a faster route to Indian consumers, more so now mobile traffic is growing rapidly, with 500 million mobiles we are leapfrogging technology in the e-commerce sector.”
Hillary Andrews from Brandspoke a consultancy specialising in helping fashion, beauty and lifestyle brands enter the Indian market said “Over two million mom & pop stores line every street in India, we need to protect and respect them as a key part of the social fabric in India, and companies should work with them to supplement their business channels through the use of technology”.
Speaking about the opportunities for UK companies in the Indian market Richard Heald, CEO, UKIBC said “UK brands have huge appeal in India, and “Made in Britain” is a unique selling point. It gives them a huge competitive advantage in the fashion sector. The importance of British branding in India retail is demonstrated by the success of Pavers England, the India subsidiary of UK companies Pavers.”
However, UK companies still need to learn much about the business environment to truly crack the Indian retail market. UKIBC helps British companies to enter India with market entry services such as market research and Launchpad®.
ENDS
For more information contact either Ishara Callan at Ishara.callan@ukibc.com /020 7592 3045 or Adam Pollard at adam.pollard@UKIBC.com /020 7592 3850
NOTES TO EDITOR
About UK India Business Council (UKIBC)
• UK India Business Council is the premier business-led organisation promoting bilateral trade and investment between the two countries. Our mission is to facilitate an increase in trade between the UK and India through business to business dialogue.
• UKIBC plays an influential role in creating and sustaining an environment in which free-trade and investment flourishes. Through the facilitation of partnerships, and with an extensive network of influential corporate and individual members, UKIBC provides the resource, knowledge and infrastructure support vital for UK companies to make the most of emerging opportunities in India. Find out more at www.UKIBC.com
• In a series of events over the next few months, the UKIBC will brief UK retailers and food and drink companies on what these changes mean and how they can access expanding opportunities. A joint UKIBC – Ernst & Young report will follow.
