Steve and Barry''s gets an Indian partner
04 Oct 2007
Mumbai:
New York-based retailer Steve and Barry''s has India on its mind. Reports indicate
the retailer has plans to enter the Indian market via the FDI route, through a
51 per cent stake in joint venture.
The remaining 49 per cent will stay
with the local partner, according to Avirat Sonpal, managing director, Unisource
Group, and vice-president, Steve and Barry''s.
Using the single-brand
retailing norm it is known for, Steve and Barry''s is expected to announce the
launch of its operations in the Indian market in about four to six weeks.
The Unisource Group has been Steve and Barry''s Indian sourcing partner for
over six years, and is funded by the international retailer.
Sonpal told
the media hat he would be Steve and Barry''s local partner when it enters the Indian
market as a retailer. Sonpal disclosed that the US firm would use the single-brand
retailing route under its own name and announce operations in the coming weeks.
Steve
and Barry''s has a strong retail presence in apparel and footwear, and these are
the categories it is expected to leverage for its Indian foray. The company is
likely to source some of its apparel offerings through local sources, while relying
on the Chinese for footwear.
Steve and Barry''s is a value-based retailer,
and would expect to compete in the Indian market, mainly on its pricing strategy.
Steve and Barry''s business model hinges on economies of scale, relying on smaller
margins driven by higher volumes. The same model is expected in India.
Suppliers
to Steve and Barry''s include textile companies such as Bombay Rayon and Alok Industries.
The
Unisource Group has Steve & Barry''s affiliate for six years, providing supply
chain solutions, retail operations solutions, and support solutions for Steve
& Barry''s University Sportswear in the US.
