Reliance in Talks with Primark for Entry into Indian Market

02 Mar, 2024

Reliance in Talks with Primark for Entry into Indian Market

Reliance Industries is in preliminary discussions with Primark, the UK-based fashion giant, regarding its potential entry into the Indian market, as reported by The Economic Times. This collaboration could position Reliance against competitors like Tata's Zudio, Max from Landmark Group, and Shoppers Stop's InTune, a recently introduced value format.

Primark, a well-established brand with over 55 years of history, is known for its affordable clothing and footwear. Despite the challenges of the past two Covid-impacted years, the brand has seen significant global revenue growth, offering prices lower than competitors like H&M and Uniqlo.

Having evaluated the Indian market for some time, Primark may explore collaboration with Reliance through joint ventures or licensing agreements, according to informed sources. Upon entry, Primark's stores are expected to be primarily situated on high streets, reflecting its unique big-box format.

In the lower-priced segment, Reliance already competes with brands like Zara and H&M through ventures like Trends and the recently launched Yousta. With over 400 stores globally and ambitions to expand further, Primark aims to reach 530 outlets by 2026. India stands as the second-largest source country for Primark's factories after China, showcasing its commitment to nearshoring in its supply chain strategy.