Gap Inc. has entered into a franchise agreement with India’s Reliance Retail.
Gap Inc. will set up shop in India through a franchise agreement with the country’s largest retailer.
The U.S. apparel giant has entered into a long-term agreement with Reliance Retail for Reliance to become the official retailer for Gap across all channels in India. Reliance will bring Gap’s latest offerings for men, women and kids to Indian consumers through a mix of stores, multi-brand store expressions and e-commerce platforms.
“We look forward to growing the Gap business across key international markets,” said Adrienne Gernand, managing director of international, global licensing and wholesale at Gap Inc. “Partnering with regional experts, like Reliance Retail in India, allows us to deliver our relevant, purpose-driven brand to customers around the globe, while continuing to diversify our business portfolio through our partner-based model.”
Gap has been in the franchise business since 2006 and it has grown into a sizeable portion of its total business. Franchise and distribution partners sell Gap products in about 70 countries through stores and e-commerce. The company said Reliance Retail has best-in-class experience operating robust omnichannel retail networks as well as the ability to scale local manufacturing to drive sourcing efficiency.
“We are happy to announce the addition of iconic American brand, Gap to our fashion and lifestyle portfolio,” said Akhilesh Prasad, CEO, fashion & lifestyle, Reliance Retail Ltd. “We believe that Reliance and Gap complement each other in their vision to bring industry-leading fashion products and retail experiences to their consumers.”
Gap’s partnership with Reliance Retail comes as the chain has been diversifying its business portfolio through a partner-based model to reach new and existing customers. On Tuesday, Gap and optical brand De Rigo launched the first collection of Gap-branded eyewear for adults, juniors and kids.
In June, Gap and Walmart launched the Gap Home Kids collection, with an inaugural assortment of more than 200 items across bedding, bath, pillows, throws, rugs and window treatments. The new line came about one year after Walmart and Gap first teamed up to launch a line of home goods — called Gap Home — sold exclusively by Walmart.