The joint venture that Reliance Retail and UK-based shoe company Clarks signed two years ago has ended. According to sources, the joint venture was not “working out” and that disagreements over the terms of the agreement had arisen between the two parties.
According to industry reports, Clarks has begun to close its outlets in India as a result of the failing collaboration. For example, the brand closed its outlets in DLF malls and Inorbit Malls approximately ten days ago, according to further sources. According to the company website, Clarks operated more than 30 stores in India in locations like Mumbai, Delhi, Bengaluru, Kolkata, and Hyderabad in collaboration with Reliance Retail. Retail locations for the brand include DLF, Inorbit, Lulu and Phoenix Malls.
Many international firms wishing to enter the Indian market have chosen Reliance Retail as their preferred partner because of its extensive resources and in-depth knowledge of the Indian market.
Nonetheless, Clarks has been conducting business in India for more than ten years. Initially, the company did so through an equal joint venture (JV) with the Kishore Biyani-led Future Group, whose flagship brand Future Retail ultimately filed for bankruptcy. The JV was created in 2011.
At a time when a flurry of international brands are expanding their foothold in the market and increasing their investments, Clarks’ India business is managing upheavals. It’s unclear right now if Clarks plans to operate in the Indian market via a fully-owned local company or look for a new partner.
