Following in the footsteps of top global retailers such as Wal-Mart, Carrefour, Tesco, and Starbucks, Hamleys, a leading toy retailer, is looking to enter India.
Based in the United Kingdom, Hamleys has appointed Ernst & Young to devise a strategy for its entry into India. Senior executives of the company are expected to visit the country next month for exploring the market, and having talks with local resource persons.
Hamleys, owned in majority by Icelandic investment company Baugur Group HF since 2003, is a multi-branded toy store, with 10 outlets in the United Kingdom and three in Denmark.
Following the government's recent decision to open the retail market to 51 per cent foreign direct investment in single-brand outlets, retailers such as Fendi and Louis Vuitton Mallertier have opted for this route.
Last month, Wal-Mart obtained permission from the government to open two licensed offices in the country.
Since Hamleys is not a single-brand retailer, it is likely that its Indian foray will be through the franchisee route. Hamleys stores stock a large collection of toys under its own brand.
However, retail experts said it was unlikely that it would just sell its branded toys in India. The essence of the retailer's business would be lost in case that happened, said Harminder Sahni, chief operating officer, Technopak, a retail consulting agency.
Hamleys made its first international foray into Denmark. Recent reports have said the retailer had signed a deal with Daud Investments LLC for opening a store in Dubai. It was also supposed to be eyeing China, sources said.