Nike, Muji, Adidas apply for Indian retail rights
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Nike, Adidas and Muji are among eight global companies seeking single brand retailing approval from the Indian government.
According to a report in The Indian Express the Department of Industrial Policy and Promotion (DIPP) has received eight applications from global brands including Skechers, Kiko International, Ryohin Keikaku (Muji), Nike, Adidas and Swarovski after foreign direct investment rules were relaxed in July.
Foreign companies can now conduct business through more than one joint venture in India, according to the newspaper.
Since then, ITaly’s Kiko International has applied to retail beauty and skin care products, apparel, jewellery and handbags. Shoe maker Skechers and glass creator Swarovski followed.
Swarovski, along with Nike, have previously had applications turned down – in Swarovski’s case because it wanted to sell in both cash-and-carry chains and single brand retail stores. It was told to reapply with separate applications, The Indian Express reports.
The identity of the other two companies was not revealed.
Questions & Answers
Q.What specifically changed in the foreign direct investment rules to encourage these applications?
What specifically changed in the foreign direct investment rules to encourage these applications?
Foreign companies are now permitted to conduct business in India through more than one joint venture, which was previously restricted. This relaxation of the rules occurred in July, according to the report.
Q.Which of the named companies have previously had applications for Indian retail rights rejected?
Which of the named companies have previously had applications for Indian retail rights rejected?
Swarovski and Nike have both had previous applications turned down by the Indian government. Swarovski's previous application was rejected because it sought to sell through both cash-and-carry chains and single brand retail stores.
Q.Why was Swarovski's earlier application for retail approval in India unsuccessful?
Why was Swarovski's earlier application for retail approval in India unsuccessful?
Swarovski's initial application was rejected because it aimed to operate across both cash-and-carry chains and single brand retail stores. The company was reportedly instructed to resubmit separate applications for each type of retail operation.
Q.What product categories does Kiko International intend to retail in India?
What product categories does Kiko International intend to retail in India?
ITaly's Kiko International has applied for approval to retail a range of beauty and skincare products in India. The company also intends to sell apparel, jewellery, and handbags.
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