Abercrombie & Fitch, a prominent American clothing chain sent a team to India to explore the terrain for starting operations, as reported in the media. The $3.4billion retailer, which also offers brands like Hollister and Gilly Hicks, has over 1,000 stores in US, Canada, UK, and Europe; and in Asia only in Singapore, Japan and Hong Kong.
The other American, San Francisco-based chain, Gap is reported to have been surveying retail estate developers and the Indian market conditions post the newly opened single-brand retail FDI. The $14.7billion Gap operates a little over 3,000 stores in the US, Canada, UK, France, Ireland, Korea, Japan, and China. It also has franchisee agreements with other companies to operate Gap or Banana Republic stores in the Philippines, Singapore, Malaysia, UAE, Korea, Kuwait, Qatar, Bahrain, Oman, Saudi Arabia, Cambodia, Indonesia and Mexico. Consultancy firms such as Cushman & Wakefield and Knight Frank India have noted that the global retail players will take about two years before firming investment in India, although some of them might be exploring their options since the FDI limit in the single-brand retail was announced, albeit with the catch of 30% local sourcing.