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Challenges for Foreign Retail in India

December 24, 2008


While covering French Brand Labels in India, we also got to know about some of the Challenges MNC retailers face in India and here is an excerpt from the same.

Continuing on the legal aspects, Nicolas Fouchet, Director of Banana Moon Intimate Wear said,

I am working on a basic market research on the local and international competitors (brands, retail prices, marketing and communication) and the distribution channel analysis. I also look into sales per product category, trademark laws, customs duties etc.

If one is looking at a financial collaboration, then a lot of legal procedures have to be adhered to. Consider for example, Gautier which imports all its furniture from France, and they have to abide by the strict customs regime and we went about it in a proper organized way.

East Face Footwear has signed marketing and distribution tie-up with the French brand and has negotiated to get a deal – suggest, develop and launch footwear which the locales will embrace rather than trying to impose upon them international styles. All norms have been followed, whereas financial terms and conditions vary from company to company and brand to brand.

Nicolas Fouchet furthers Adds,

The success of Franchisee depends on professionalism, the work and the adaption of both the franchiser and the franchisee or master-franchisee. If the Indian investor selects the right brand with adapted products for India’s consumers and manufactured by a reliable company, he will succeed.

Despite the economic gloom, French / MNC retailers are bullish on the prospects of India and are continuing to expand in selected pockets.

Related Reading:
Challenges Faced by Indian Retailers

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