ASOS partners with Reliance Retail to tap into India's fashion market

The deal includes ASOS's first exclusive brand stores in the country.

British online fashion retailer ASOS has partnered with Reliance Retail to bolster its brand presence in India, GlobalData reported.

According to Pippa Stephens, senior apparel analyst at GlobalData, the collaboration is expected to cater better to the preferences of Indian consumers and leverage Reliance Retail's expertise in the local market. 

He said India's fashion market is anticipated for substantial growth, with a projected compound annual growth rate (CAGR) of 5.2% from 2023 to 2028.

“India’s growing economy and rising middle-class means consumers have higher discretionary incomes to spend on apparel, and it is also becoming increasingly urbanised, with city shoppers more inclined to keep up with the latest fashion trends,” Stephens said.

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The deal includes the introduction of exclusive brand stores, marking ASOS's first foray into permanent standalone locations in India. 

The move is strategic, considering that India's online retail market is still evolving, constituting only 24.0% of apparel sales in 2023.

Additionally, the establishment of physical stores will provide Indian consumers with the opportunity to experience ASOS products firsthand, fostering greater confidence in the brand.

“However, stores will undoubtedly be restricted to a smaller product range than ASOS’ own website, so this must be carefully curated to ensure the strongest and most relevant products are available,” said Stephens.