A number of well-known global brands have obtained much of their sales and profits from non-domestic markets for years. The successes of these brands have provided encouragement to many firms to market their brands in India and vice versa. Today companies going global continuously innovate their strategies for worldwide success. Many international brands in India are positioning themselves into the Indian market to understand well the needs of target group. We are finding increasing signs of a growing comfort with the operating environment and a desire to own and control strategic market like India.
Global brands initially were a fail because they did not understand the mind-set of the Indian audience but soon they re-entered the market with a changed strategy and new dynamics. 75% of these global brands were women oriented as it was observed that women would often order stuff from international brands online. Brands like Charles & Keith India have made a huge impact on the modern women. They have changed the face of women shoes and handbag industry by launching luxury, sophisticated, one-of-a- kind products, that was their USP.
Charles and Keith bags in India: With growing professionalism amongst women, the industry that benefitted the most was fashion. Dressing, handbags and shoes needed to be perfect and had to complete the entire look. This was the time when Charles and Keith bags took the Indian market by storm. Quirky, sophisticated, bold colors, vivid patterns — you name it and they have it. It is the largest contributor in the overall industry as well as in the organized handbag market in India with a market share of 12% in FY’2014 respectively. The feeding frenzy in the market is the testament to the growth of the brands in India.
Market for international brands in India: Over the past few years, the emerging Indian market has attracted foreign retailers, and in 2010, India attracted the largest number of new retailers. Perceived to be privileged brands that catered to class vs. mass, strategic re-pricing and a highly visible promotional campaign repositioned international brands in India as the new affordable segment that appealed to the people. Global brands operating in India always try to be as local as they can be, by converting themselves into Local Global brands i.e. being global at heart but local in appeal.
Future of international brands in India: Over the years, the appeal of global brands is only orchestrated to grow. With budding demand, the supply has to meet the needs of a global population. Lifestyle changes will only increase and so will the fascination of global brands. International brands in India will gain higher market share as they convey an assurance of quality and reliability. The growth for these brands in Indian market will increase throughout depending on how they are tapping it by offering more and more regional flavours and tastes which are pushing these brands forward.
