The joint venture, Clarks Reliance Footwear, operated 32 exclusive Clarks-branded stores across major Indian cities, including New Delhi, Mumbai, Bengaluru, Lucknow, Hyderabad, and Chennai
Reliance Retail, a subsidiary of Mukesh Ambani’s Reliance Industries, and UK-based footwear company Clarks have decided to part ways, ending their two-year-old joint venture. The decision comes after significant differences over various terms of their partnership, according to media reports, which cited sources familiar with the matter. While there has been no official confirmation from either party, the move marks a notable shift in Clarks’ strategy in the Indian market.
The joint venture, Clarks Reliance Footwear, operated 32 exclusive Clarks-branded stores across major Indian cities, including New Delhi, Mumbai, Bengaluru, Lucknow, Hyderabad, and Chennai. The stores featured a wide range of Clarks’ footwear, catering to the growing demand for international brands in the Indian market.
Reports suggest that Clarks is likely to shut down all its stores in India as part of its exit strategy. Around six mall owners have reportedly confirmed the new development, stating that Clarks has either already closed its stores in their shopping centres or is in the process of doing so. Some industry insiders speculate that Clarks may consider restructuring its business in India to operate as a single-brand retailer, which would allow the UK brand to maintain a presence in the country without relying on a joint venture model.
Reliance Brands, the unit of Reliance Retail involved in the partnership with Clarks, has not yet responded as yet. The end of the joint venture underscores the complexities and challenges of international collaborations, even for a conglomerate as diversified and expansive as Reliance Industries.
Mukesh Ambani continues to expand his business empire, with Reliance Industries venturing into various sectors through new brands and joint ventures. While many partnerships have proven successful, the termination of the joint venture with Clarks highlights that not all collaborations align perfectly with strategic objectives.
Under Indian regulations, 100 per cent overseas ownership is allowed in single-brand retail businesses, enabling foreign companies to operate independently under their brand names, as seen with companies like Apple, Puma, and Marks & Spencer. This regulation could provide Clarks with a pathway to continue its operations in India, should it choose to proceed with a single-brand retail strategy.
The development also reflects the evolving landscape of the Indian retail market, where consumer preferences and business dynamics continue to shape the strategies of both domestic and international brands.
