New Delhi: Australian fashion retailer Cotton On Group has entered India through a franchise partnership with Apparel Group, with plans to open 40-50 stores across the country over the next five to six years.
The brand will expand in Delhi NCR before exploring other metros and select tier-2 cities, with stores typically ranging between 4,500 and 6,000 sq ft and largely located in shopping malls.
The India entry marks Cotton On’s largest single-market expansion and one of the few markets where the company has opted for a franchise-led approach. The group operates more than 1,300 stores across 20 countries, with the majority of its outlets globally being company-owned.
“India was a market we identified many years ago where the right local partner would improve our chances of long-term success,” said Michael Hardwick, chief financial officer at Cotton On Group, in an interview with ETRetail.
Youth-driven growth opportunity
Cotton On plans to position itself as an accessible lifestyle brand targeting 18-25-year-old consumers, while offering a broader assortment that appeals to older shoppers as well.According to Hardwick, India’s large youth demographic and growing demand for international fashion brands were key factors behind the company’s entry into the market.
Omnichannel rollout
The brand will adopt a phased omnichannel strategy, combining physical retail, a dedicated India e-commerce site and third-party marketplaces, with quick commerce to be explored at a later stage.
“We want to be present across channels because the Indian consumer shops everywhere… retail, online and increasingly quick commerce,” Tushar Ved, president at Apparel Group India in the joint interview.
The initial rollout will prioritise physical retail and direct-to-consumer online, followed by expansion into marketplaces as the brand scales.
Local execution and supply chain
Under the partnership, Apparel Group India will manage local retail operations and distribution, leveraging its logistics infrastructure and experience launching global brands in the country.“India has one of the world’s fastest-growing young premium-buying populations with increasing demand for global lifestyle brands,” said Abhishek Bajpai, CEO of Apparel Group India.
Cotton On said around 80-85% of its product assortment will remain consistent with global markets, with limited localisation for climate and regional demand.
India already serves as a sourcing market for Cotton On’s global supply chain, and the company plans to integrate its India operations into its existing procurement network.
Apparel Group currently operates over 300 stores across 50 cities in India and manages a portfolio of more than 20 international brands, providing the retail infrastructure and landlord relationships to support Cotton On’s expansion.>
