British retailer Marks & Spencer (M&S) said it is opening a store every month in India, accelerating their outlet expansion though a quarter of their sales comes from online channels. India is already its largest international market outside home in terms of store network with 100 stores opened in the last 15 years.
“If you just look at the market, whether there are customers to buy M&S; there’s disposable income, there is enough macro and opportunity at play here. Because of where the Indian economy is, the country is bound to be a priority market,” said Ritesh Mishra, India MD at M&S, which operates in the country through a joint venture with Mukesh Ambani‘s Reliance Retail.
The plan is to take their retail space from 1.1 million square feet now to 1.4 million sq ft by end of the year. “We are already in about 36 cities. And even within those cities, there’s far more opportunities for us to do a bit more. So, as and when we get the right real estate, right malls, right locations, etc, we want to open more and more stores,” he added.
M&S, a mainstay of the UK high street, has been trying to appeal to younger shoppers globally and announced an overhaul of its stores to expand its brick and mortar presence to build a more resilient business and focus on quality merchandise. Also, companies such as Levi’s, Uniqlo and Celio are increasingly getting popular for functional basics like T-shirts and jeans, unlike fast-fashion rivals that are associated with designs that move quickly from the catwalk to the showroom.
However, bargain-hunting cash-squeezed Indian consumers still largely perceive M&S as pricey compared to local brands like Zudio and global fast-fashion labels such as Zara and H&M.
“I think fast fashion is an overrated word. We stand for quality and elevated style essentials. Linen is one very essential category, swimwear is another. These are our strengths and we will back it up. And in India, if you have more colour, you are in fashion. So, we drive those credentials,” said Mishra, who was previously head of operations and property at the UK-based clothing retailer.
Over the past few years, India has seen a clutch of the world’s largest apparel brands open outlets betting on young consumers increasingly embracing western-style clothing. Over the past few quarters, most apparel retailers have seen growth tapering off as shoppers cut back on discretionary spends.
For M&S, women consumers contribute 60% to the revenue and a bulk of its overall sales are in winter months.
The company said the current festive period will be a testing ground for them as the winter period is extremely crucial.
“I’m actually quite buoyant about this festive period….” said Mishra.
