From Lush to Lululemon: Why global retailers are scrambling for Indian shoppers

Large international clothing labels such as COS, Bershka, Next, and G-Star Raw, and cosmetics brand Lush have entered the Indian market over the past year. Canadian athleisure Lululemon and American contemporary clothing retailer Abercrombie are set to commence retail operations next year—a sign of intensifying competition for affluent urban consumers in India.

Industry executives said more brands are likely to rush in, as demand in several global markets plateaus.

Last month, British brand Lush, known for its soaps and bath bombs, returned to India via a licensing arrangement with Bilberry Brands India.

Vishal Anand, founder and chief executive officer (CEO) of Bilberry Brands India Pvt. Ltd., said India remains underserved in key segments, particularly accessories and women’s western wear, explaining the strong consumer demand that's prompting more international retailers to enter the market.

Demand drivers

“India has historically had fewer international brands than a market of its size. The opportunity is especially strong in women’s western fashion and accessories, where the range of global labels has remained limited. As better-quality retail spaces emerge, the market becomes even more attractive for foreign players." Anand, who previously worked at Myntra and Calvin Klein in India, told Mint.

The fashion market has for years focused largely on men’s western wear, with fast-fashion brands such as H&M and Zara entering only in the last decade, he said.

Lush will open its first store in January, and plans to add another 10 stores over the next 18-24 months.

“Our focus is on building the brand thoughtfully rather than expanding for its own sake. Several global brands have struggled in India—so a calibrated approach is essential," Anand added.

Online retailer Tata CLiQ CEO Gopal Asthana said global brands view India as a high-potential market.

The platform is the official retailer for Guess Jeans in India, and has partnered with Lululemon for its online and offline expansion, with stores and dedicated e-commerce platforms expected to go live in the second half of 2026.

“One of our key priorities is to continue introducing international brands that resonate with evolving consumer preferences," Asthana said.

Tata CLiQ Luxury recently partnered with Switzerland's multi-brand watch retailer TimeVallée to launch its first digital boutique in India, and rolled out Bvlgari’s debut online boutique as well.

Retail transformation

Asthana said rising aspirations, expanding digital infrastructure and increasing purchasing power—especially among non-metro consumers, millennials and Gen Z—are reshaping consumer spends. “Today’s Indian consumers are globally aware, style-conscious and deeply value authenticity, heritage and craftsmanship," he said.

Analysts said premium brands will continue to tap urban demand, but the bulk of volumes and growth will remain concentrated in the value retail segment, which still serves the largest share of Indian consumers.

“However, international labels retain strong appeal and aspiration value," said Naveen Malpani, partner and retail and e-commerce industry leader, Grant Thornton Bharat.

“Early entrants that once focused only on urban India are now expanding into tier-2 and tier-3 markets, where appetite for branded and premium products is rising steadily," he said.

India’s retail sector is undergoing rapid transformation, driven by digital disruption, evolving consumer expectations and the rising influence of younger shoppers. Valued at $1.06 trillion in 2024, the country's retail market is projected to swell to $1.9 trillion by 2030, growing at a CAGR of 10%, according to Deloitte.

In 2024, more than 750 new stores opened nationwide, with investments exceeding ₹12,000 crore (approximately $1.38 billion). Fashion and apparel dominated activity, contributing 31% of retail leasing in 2024.

Foreign retailers' rush to India is in sharp contrast to their indifferent growth prospects elsewhere. Swedish retailer H&M plans to shut 200 stores globally. However, it has identified India and Brazil as big “opportunities".

Brand strategies

To be sure, several foreign retailers have in the past struggled to sustain operations in India, often due to disagreements with local partners or expanding before the market was mature enough.

Helped by social media, growth of online retail, and better-quality real estate, Indian consumers are now showing a strong appetite for branded products.

Bengaluru-based Ace Turtle, the exclusive licensee of global brands Lee, Wrangler and Dockers for India and other South Asian markets, recently signed a long-term licensing agreement with WHP Global to launch denim brand G-Star in India, marking the premium brand’s return to India after over a decade.

“India's opportunity is driven by a clear consumer movement: first from unbranded to branded fashion, and then from branded fashion to higher-quality, premium and lifestyle-driven wardrobes," said Nitin Chhabra, CEO of Ace Turtle.

“As incomes rise and fashion awareness deepens, consumers are actively looking to upgrade—not just in terms of labels, but in terms of fit, quality, sustainability and brand experience. For international brands, this creates a long runway for growth across multiple tiers of the market," he said.

Entry of global fashion brands is a trend likely to continue for years, he said.

“We see significant headroom for growth in the premium fashion and lifestyle segment, and we remain actively engaged in bringing more global brands into our portfolio as and when they align with our strategy. Our focus is on identifying labels with strong global equity, a differentiated product offering and long-term relevance for Indian consumers. As the market evolves, brands with a clear identity and compelling storytelling will find deeper resonance here," Chhabra added.

Earlier this year, Spain’s Inditex Group, which operates Zara, expanded its footprint in India with the launch of Bershka at Mumbai’s Phoenix Palladium. Unlike Zara and Massimo Dutti—which operate through a joint venture with Trent Ltd—Inditex launched Bershka directly in India. In fiscal year 2025, Zara India reported a revenue of ₹2,782.06 crore, steady from the previous year.

Anand of Bilberry said such launches will intensify competition and heighten price sensitivity, “but more choice is certainly needed."

Last December, Myntra announced a multi-year franchise partnership with Abercrombie & Fitch Co., paving the way for Abercrombie & Fitch and Hollister stores in India.

Last December, Myntra announced a multi-year franchise partnership with Abercrombie & Fitch Co., paving the way for for Abercrombie & Fitch and Hollister stores in India.

Venu Nair, chief of strategic partnerships and omnichannel, Myntra, said: “India is undeniably one of the most attractive growth markets for global lifestyle brands, driven by rising disposable incomes, rapid premiumization and the growing demand arising from tier 2 and tier 3 cities. At Myntra, we actively connect over 450 international brands to our 75 million+ monthly active user base, spanning across the country."

Global brands step up India push

Some of the biggest global brands have significantly accelerated their efforts to tap into India’s vibrant consumer landscape. UK’s fashion major, NEXT, which is available on Myntra platform, opened its first store in Pune in September. It plans to expand access to its classic collections through about 50 points of sale in all, in the next 5 years, in association with Myntra Jabong India Pvt Ltd’s (Myntra’s B2B wholesale entity) licensed franchisee partners in key Indian cities, with Hyderabad, Delhi, Mumbai, and Bengaluru in the pipeline.

“The sheer headroom available in Gen Z fashion, premium womenswear and global beauty reaffirms that India will be at the core of the international expansion strategy for global fashion, beauty and lifestyle brands. As the e-lifestyle landscape evolves, we will continue to build a strong repertoire of global brands to cater the evolving needs of our customers," Nair said.

Swedish retailer H&M launched its beauty line in India and opened the first store for its upmarket COS brand in Delhi. In an interview with Mint, H&M Group CEO Daniel Ervér described India as one of the brand’s most important global markets.