Retail in Asia

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India: Skechers, Kiko get nod for single brand retail

In a big push to foreign direct investment in single-brand retail, footwear maker Skechers USA Inc. and Italian cosmetic brand Kiko have secured the government’s approval to open outlets in the country.

Proposals of Nike, the world’s biggest maker of sports goods, and Germany’s Puma have received the Department of Industrial Policy and Promotion’s consent and have been sent to the finance ministry for final clearances.

Fast-track single-brand retail proposals, DIPP now examines all applications and forwards them to the Department of Economic Affairs for the finance minister’s nod. The Foreign Investment Promotion Board does not scrutinise these proposals. India allows up to 49% of foreign direct investment in single-brand retailing under automatic route and approval has to be taken for higher levels. Companies are required to comply with a 30% domestic sourcing norm for investments exceeding 51%.

Approval for Skechers and Kiko comes almost nine months after they filed applications to open their stores. The companies will also be allowed to sell their products directly online after opening their brick-and-mortar stores.

(Source: Economic Times )