Swarovski gets FIPB's nod to flaunt its own stores in India

MUMBAI: Austrian crystal maker Swarovski will now be able to run fully-owned stores in India, having secured the Foreign Investment Promotion Board’s approval to its foreign direct investment proposal for single-brand retail.

The premium brand joins the league of other global firms such as Swedish budget furniture chain IKEA, fast fashion firm H&M and American lifestyle brand Fossil to receive the FIPB’s nod for its investment plans after India removed the FDI cap on single-brand retail.

Swarovski plans to invest €10 million ( Rs 75 crore) in India not just to expand its store count, but also to learn designs that can inspire its global product range, said Francis Belin, senior vice-president for Asia-Pacific region.

"There is a very high appetite of Indian women for opulent jewellery and we have to be there when the market develops. We are investing to learn consumer relevance and are also testing different price points in terms of more affordable products," said Belin.


India is the second-largest jewellery market in the world after China with annual sales of about $30 billion (about Rs 1.95 lakh crore). However, the market is highly scattered, with the largest player Tanishq controlling just 4 per cent of the organised market. Unlike most jewellery brands that thrive on weddings, Swarovski wants to sell products on other occasions as well, including the festive season.

Earlier this year, Swarovski tweaked its global offering for the first time to suit local demand by launching nearly 50 Indiaspecific products. The company opened its first store in India in 2005. Till now, it has remained cautious in expansion, focusing only at major locations and top malls.

Unlike many other global retailers that are attracted to India after struggling at home markets, Swarovski is growing its business in double digits and doesn’t see India as a huge market for revenue generation in the short-term. "We don’t want to milk the market by cutting prices or launching stores everywhere. Instead, we want to learn design sensibilities from India since there is a lot of demand for such products similar to how Indian yoga is in fashion the world over," said Belin.

The company’s store expansion plans will depend on quality upcoming malls and real estate, which is a scarce commodity in India, he said. Swarovski earns about Rs 120 crore a year in India through its 40 franchise stores operated by various partners, along with nearly 60 counters at department stores.

The parent company, which operates about 2,500 stores in 170 countries, has an annual turnover of €3 billion, or about Rs 22,200 crore.