Gap announces Partnership with Arvind Lifestyle Brand to enter Indian Market
On Friday, U. S. apparel retailer Gap Inc. formally announced its partnership with Arvind Lifestyle Brand. The partnership will involve openings of Gap retail outlets in India.
Gap, an American multinational clothing and accessories retailer, was founded in 1969 by Donald Fisher and Doris F. Fisher. The company is based in San Francisco, California. On Thursday, the company announced its second-quarter results along with its expansions plans to enter India through franchise-operated Gap-brand stores by next year.
Also, the textile manufacturer, Arvind Lifestyle Brands Ltd., gave a statement to the Indian stock exchange in which it said that it has plans to open Gap stores along with the Old Navy and Banana Republic chains.
Gap is looking at India as a potential market for next level of expansion. U. S. retail industry is currently facing tough times due to slow consumer spending. Besides this, the company feels that India, being the world's second most populated country, provides a superb platform for providing American casual style for the consumers there.
The Indian market has rules that allow foreign-owned, single-brand retailers to open their own stores in India, but still, Gap opted for a partnership with Arvind as this joint venture will help Gap reduce the cost of bringing its whole setup in India. Also, association with an Indian textile manufacturer will provide it an access to a ready-made distribution network.
Steve Sunnucks, Global President of Gap said, "India is an emerging, vibrant market and an important next step in our global expansion strategy". Gap already has company-operated stores in the US, Europe, Hong Kong, China, Japan and Taiwan.
The association between Gap and Arvind is from many years as the US retailer sources denim from the Arvind group.
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