Fashion Retailers investment in Indian Designer Labels
In a trend that seems to be sweeping the industry, aspirational luxury brands like Manish Malhotra, Sabyasachi and Ritu Beri are being incorporated into bigger company portfolios of fashion retailers Reliance Trends and Aditya Birla Fashion. What does this mean for the brands and their consumers?
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The curious case of Sabyasachi
Aditya Birla Fashion and Retail (ABFRL) has acquired a total of 51% stake in Sabyasachi Mukherjee’s eponymous label for a sum total of INR 398 Crores. Sabyasachi is touted as one of the biggest players in the Indian luxury market with the label’s 2020 fiscal earnings estimated to be around INR 274 Crores.
With a strong presence in markets abroad, as well as successful ventures in apparel and jewellery, Sabyasachi adds an important depth to the Indian fashion portfolio already handled by ABFRL.
Speaking to Business Standard, Sabyasachi opened up about the oncoming changes: “Over the course of the last couple of years, as my brand evolved and matured, I began searching for the right partner in order to ensure continuity and long-term sustainable growth. I am honoured and excited to have found that partner in Kumar Mangalam Birla and ABFRL. Aligned in our vision, and committed to excellence, we will work together to grow a truly global luxury brand out of India.”
Sabya for the world
Sabyasachi has long expressed his desire to venture into household décor and wedding planning. Perhaps, now is the time for the designer to finally realise his dream with the backing of ABFRL.
With the expectation of more stores and faster collections all around the world, the customer might be happy with the increased accessibility but we’re definitely looking at the carbon footprint as well.
Such was the argument made by Ashish Dixit, managing director of ABFRL. In a press release directed to the media, the executive said, “We believe that over the next few years, ethnic wear is going to be an increasingly important category as young and confident Indians rediscover their culture and heritage. The Sabyasachi brand, through its emphasis on excellence in design and craftsmanship has set new benchmarks and captivated the imagination of the sophisticated global Indian consumer. We are proud to partner Sabyasachi in its journey to become the only global luxury brand from India. We see a ‘Made in India’ global brand like Sabyasachi occupying the pinnacle of our ethnic wear portfolio. Over the next few years, ABFRL intends to craft a portfolio that addresses the entire gamut of ethnic wear segments: value, premium and luxury.”
Additionally, ABFRL has also added the Tarun Tahiliani label to their stable with a whopping $9.25 million investment and a 33% stake.
Reliance’s Manish and Ritu collective
The Mukesh Ambani-led Reliance Industries acquired a 40% stake in Manish Malhotra’s brand while acquiring a total of 52% in Ritu Beri’s label. The former move was made by RIL to ensure that they are positioned in a competitive space within the industry as well as bolstering the company’s Indian designer wear portfolio. It could be seen as a direct reaction to Sabyasachi and Tarun’s partnerships with ABFRL as well.
“We are looking at the top 20 million customers in India. Not 1.3 billion. The discretionary wallet spend on products of the top 20 million customers is what we remain focused on,” explained Darshan Mehta, CEO of Reliance Brands which manages such luxury partnerships for the group, to Reuters in an interview. “If there is an opportunity to be acquisitive in nature and a whole host of things are right, we’re there,” he added.
Much like ABFRL, Reliance Industries too has invested in other indigenous Indian labels like Satya Paul and Raghavendra Rathore.
By - Srijoni Roy
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