Chicco Bets Big on India as Growth Market and Global Manufacturing Base

Chicco Bets Big on India as Growth Market and Global Manufacturing Base

Chicco Bets Big on India as Growth Market and Global Manufacturing Base
The brand plans to open 10–12 new stores every year and is expanding exports from India across multiple product categories, including apparel.

Italian baby care and apparel brand Chicco is intensifying its focus on India, positioning the country as both a high-growth consumer market and an emerging manufacturing and export hub within the Artsana Group’s global operations.

The brand plans to open 10–12 new stores every year and is expanding exports from India across multiple product categories, including apparel. Chicco has already begun exporting toys and toothbrushes manufactured locally, while additional categories are under evaluation as part of a broader strategy to integrate India more deeply into its international supply chain.

Rajesh Vohra, CEO of Artsana India, said the company is actively working to establish India as a key production base for global markets. Chicco recorded growth of over 35 per cent in the last financial year and is sustaining momentum well above 20 per cent in the current year, reflecting strong consumer demand.

On the retail front, Chicco is targeting a network of 40–50 exclusive stores across Tier-1 and Tier-2 cities, operating through a mix of company-owned outlets and franchise partners, following its recent registration as a direct retailer in India. In addition, the brand currently runs more than 50 shop-in-shop formats and distributes select products through pharmacies and supermarkets.

Quick commerce platforms are emerging as a significant growth driver, delivering triple-digit growth rates and helping the brand expand its online reach beyond metropolitan markets. While offline retail continues to account for the bulk of sales, Vohra noted that online channels could overtake physical stores if current trends continue.

Manufacturing and margin management remain a key focus area. In apparel, reliance on imports from Chicco’s global collections to maintain brand consistency has put pressure on margins, slowing the pace of fashion expansion in India. To offset this, the company is exporting sizeable volumes of apparel produced at its South India facilities to international markets.

Chicco continues to reinvest most of its profits into expansion and product development. Capital expenditure in the previous year was at par with, or higher than, annual profits, covering the rollout of 10 new stores and investments across categories.

India’s baby care market has become increasingly competitive, evolving from a space once dominated by a handful of players to a crowded landscape featuring multinationals, national retail chains and direct-to-consumer start-ups. Chicco compet across categories, facing apparel chains in clothing, Indian and international brands in strollers, and a mix of MNCs and start-ups in nursing and feeding products.

The company is also expanding its age focus beyond the 0–2 years segment to cater to children up to six years, with longer-term plans to enter the pre-teen category. Product positioning varies, with a premium strategy for strollers and fashion, and an “accessible premium” approach for mass categories such as cosmetics and feeding bottles.

Following a recent GST reduction, Chicco has passed on the full benefit to consumers along with additional apparel discounts, aiming to drive higher volumes and offset margin pressures through scale.

While India currently contributes a relatively small share to Artsana’s global revenues, the company sees significant long-term potential. Vohra said Chicco aims to build leadership positions in India similar to those it enjoys in markets such as Italy and Portugal.

 

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