Why International Retail Brands Struggle To Find Their Footing in India — Retail Bum

India is on track to become the third largest consumer market in the world by 2027, thanks to a rise in the number of middle to high-income households.

Continued urbanization and digitalization of the economy are expected to help boost consumer spending and give brands easier access to consumers through both physical and online channels. Overall, household spending is projected to rise to $3 trillion, with a quarter of households expected to have $10,000 in annual disposable income, according to a recent report by BMI.

With the bulk of the affluent households located in major metropolitan cities, such as Bengaluru, Mumbai, and New Delhi, tech and fashion brands ranging from Apple and Samsung to Valentino and Balenciaga are busy setting up shop and building brand loyalty. Meanwhile, investors such as the Blackstone Group and APG Management are pumping money into the country’s fast-growing mall industry, which is set to account for $39 billion in retail sales by 2028.

While India presents a prime opportunity, the on-the-ground reality of establishing business and driving revenue has been a sobering experience for many international companies.

The government of India revealed last year that as many as 2,783 international…