Aeropostale chooses India over China for growth
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Aeropostale, an American mall-based fashion retailer for young men and women, is eyeing revenues of around Rs 500 crore from the Indian market in the next four years. The teen retailer launched its first store in the Capital in partnership with textile major Arvind and said India would be among its top three markets within that time period.
Aeropostale has been grappling with diminishing sales in its largest market, the US, where it operates around 800 stores. It has been facing stiff completion from fast-fashion stores such as, H&M and Forever 21. Since then, it has taken the licensing route to expand into other markets. Interestingly , the brand has chosen India over China.
“India will become one of our most important markets.China is overcrowded with foreign brands at the moment.Latin America, which brings us revenues of around $100 million, is our second-largest market after the US,” Kenneth Ohashi, senior VP, international and global licensing at Aeropostale, told TOI.
Questions & Answers
Q.What revenue target has Aeropostale set for its Indian operations?
What revenue target has Aeropostale set for its Indian operations?
Aeropostale aims to achieve revenues of approximately Rs 500 crore from the Indian market over the next four years. India is expected to become one of its top three markets within that timeframe.
Q.Which partner is Aeropostale collaborating with for its expansion in India?
Which partner is Aeropostale collaborating with for its expansion in India?
Aeropostale has partnered with the textile major Arvind for its entry into the Indian market. Its first store was launched in the Capital through this collaboration.
Q.Why has Aeropostale prioritised India for growth over China?
Why has Aeropostale prioritised India for growth over China?
Aeropostale considers India a more strategic growth market because China is currently overcrowded with foreign brands. This decision comes despite Latin America being its second-largest market.
Q.What challenges is Aeropostale currently facing in its primary market, the US?
What challenges is Aeropostale currently facing in its primary market, the US?
In the US, Aeropostale is experiencing diminishing sales across its approximately 800 stores. It faces stiff competition from fast-fashion retailers such as H&M and Forever 21.
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