Following today’s news that ASOS is partnering with Reliance Retail in India; Pippa Stephens, senioapparel analyst at GlobalData, offers her view: “Joining forces with Reliance Retail to boost its own-brand proposition in India will allow ASOS to better cater to the preferences and styles of local consumers, due to Reliance’s extensive expertise in the Indian market. ASOS will also be able to lean on the retailer’s strong awareness and perceptions among Indian consumers to bolster its own visibility.
Forecast by GlobalData to grow at a CAGR of 5.2% between 2023 and 2028, India is a lucrative market for fashion retailers to tap into, with Next also announcing expansion in the country through a franchise agreement with Myntra in April 2024. India’s growing economy and rising middle-class means consumers have higher discretionary incomes to spend on apparel, and it is also becoming increasingly urbanized, with city shoppers more inclined to keep up with the latest fashion trends.
ASOS’ deal with Reliance includes the introduction of exclusive brand stores, which will be its first foray into permanent standalone locations. This is a sensible move given India’s online market is less developed than in Western countries, only accounting for 24.0% of apparel sales in 2023, however the digital channel is growing fast, so it is wise that the deal also includes ecommerce platforms. Providing Indian shoppers with the opportunity to see and try-on items in person will also give them greater confidence while they become more familiar with the ASOS brands. However, stores will undoubtedly be restricted to a smaller product range than ASOS’ own website, so this must be carefully curated to ensure the strongest and most relevant products are available.”
