US Apparel Brand Urban Factory Forays Into Indian Market

US Apparel Brand Urban Factory Forays Into Indian Market

US apparel brand Urban Factory has entered India independently and plans to open two stores in Bengaluru and Hyderabad by the mid of this year. Madhuri Lakkapragada, founder of Urban Factory said, "All styles that come in India are delayed by a season. Unfortunately, fashion comes to India in the end. To fill this gap, we are bringing our current customized styles to India." Last year India had eased the norm for foreign direct investment in single-brand retail, permitting brands to set up stores in the country. Urban Factory is a women's apparel brand which focuses on professional and casual fashion. The brand plans to launch men's clothing and accessories as well in the next six months.

The company plans to open its first mono brand store in Hyderabad Forum Mall in May and in Bengaluru by June. The one-year-old company plans to sell through multi-brand stores as well by April. According to a CII BCG report, India's retail market has the potential to grow from US$ 630 billion in 2015 to US$ 1,100-1,200 billion in 2020 on the back of rising income levels and increased urbanisation.Retail sector will take advantage of a large, young population adding to the workforce, 70% increase in income levels, nuclearisation of families and increasing urbanisation according to the report. Global brands such as H&M, GAP and Aeropostale have recently entered India too, which is also seeing a surge in foreign players entering the country using the online channel.