Aditya Birla Fashion And Retail forays into the D2c space and establishes a new subsidiary
Aditya Birla Fashion and Retail Limited (ABFRL) on Friday announced plans to set up a platform to foray into the Direct to Consumer (D2C) sector. The leading fashion company’s board of directors at a meeting on Friday gave ‘blanket approval’ to create a new subsidiary to build a portfolio of distinct, new-era digital brands across all the fashion, beauty and other allied lifestyle categories. segments.
“The D2C Wallet will be built through organic and inorganic means,” said a statement from Aditya Birla Group. This venture will initially be funded by internal ABFRL charges,” he added.
“When the time is right, the company will look to bring in external capital to accelerate the growth journey,” said ABFRL, which is a directory of top brands such as Louis Philippe, Van Heusen, Allen Solly and Peter England and owns the largest fast-fashion store brand Pantaloons. The D2C market opportunity in India is expected to reach $100 billion by 2025, ABFRL said.
“The newly incorporated entity will organically incubate and also acquire promising and scalable D2C brands. In addition to providing growth capital, ABFRL’s proposition leverages its strong operational expertise where it will use its wealth of experience and capabilities to develop this portfolio,” he added. . ABFRL chief executive Ashish Dikshit said the company wants to create the next set of iconic brands in the digital space because “it evolves with the evolution of our consumers”.
“By leveraging our core design, product creation, sourcing and branding capabilities that have enabled us to create some of India’s most beloved fashion brands in the off-space online, we now want to create a successful portfolio in the digital space as well,” he said. noted. Dikshit further stated that the ABFRL is confident that this foray will successfully meet the aspirations of digital native customers and also create long-term value for investors and other stakeholders.
“The company will now accelerate the process of building the D2C framework and identifying key talent for this game. ABFRL will seek to tap into the broader technology ecosystem and collaborate effectively with its e-commerce partners, service providers technologies and its digital marketing agencies are scaling this business quickly,” he said.
ABFRL is India’s first billion dollar fashion powerhouse with turnover of Rs 5,249 crore. As of March 31, 2021, the company has a network of 3,212 stores spread across approximately 31,000 multi-brand outlets with over 6,800 department store outlets across India.
(With PTI entries)
(Edited by : Priyanka Deshpande)
First post: STI