British retailer Marks & Spencer (M&S) is looking to make India its most important market as it plans to raise its store count to 80 by 2016 from 36 now, which would be its biggest globally.
Analysts said this would be a big step for company, which, according to retail experts, did not capitalise on its advantage of being the first foreign apparel brand to enter country and had only 14 stores during 2001-08.
Several other international retailers such as Zara who even though entered India late have managed to grow better than M&S.
Though the company recorded high sales growth of 28% in the quarter ended September, it had come on the back of a small base.
Now, the retailer is expanding aggressively and planning to enter Tier 1 and 2 towns such as Surat and Kanpur.
Also unlike other retailers in India which are looking at smaller size stores, M&S would continue with its strategy of going in for bigger stores. It just It just opened its largest store in the country, in Mumbai, which would spread over 35,000 square feet.
The company would go for a cluster format and have smaller stores around it flagship stores, said Marc Bolland, CEO, M&S.
“M&S also plans to capitalise on the lingerie and beauty market in India and with this we have also rolled out our world’s first lingerie & beauty department in our store in Bandra,” he said.
Lingerie now accounts for over a fifth of the retailer’s sales. As a per Euromonitor report, the lingerie market in India, pegged at `17,470 crore in 2012, was expected to grow by 54% by 2017.
Also, in order to woo Indian consumers the company has shed the premium tag and is focusing on the mid to premium segment. Increased focus on local sourcing has helped the company keep the prices under check, Bolland said. Currently, about 64% of M&S’s clothing for India is sourced from India, Sri Lanka and Bangladesh.
On reports about M&S seeking FIPB clearance to start food retailing in India, Bolland said, “Even though food is the future, there are no immediate plans as such.”
Globally, food accounts for over 50% of M&S’s business. In fact, its overall global apparel sales have been down for the last nine quarters, but its food business has grown 5% in the first half of the fiscal.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}