Indian conglomerates invest in fashion houses
Large Indian companies have bought stakes in local designer brands to develop them and go global, writes the BBC.
This could lead to the near future in which the luxury retail market is a more mature entity.
There are several examples, including Addictionpurchase of 40 percent of the capital of a famous fashion designer Manish malhotrathe label of. Malhotra has worked with Bollywood stars for 30 years and has been running her label for 15 years. The report says the partnership with Reliance was a way to focus on Malhotra’s directorial debut, but also a way to expand internationally.
“I have the practical knowledge, but for someone who hasn’t studied the fashion business, my dreams and my stories need this support to go global,” he told the BBC during from his design studio in the Mumbai suburb of Santacruz, according to the report.
Added to this is the case of Aditya Birla Fashion, which has acquired stakes in fashion designers such as Sabyasachi, Tarun Tahiliani and Shantanu & Nikhil.
And Nonita Kalra, editor-in-chief of Tata CliQ Luxury, says international brands “are not going to appeal” to an Indian audience – and that those seeking growth should keep in mind the specific tastes of this market, which, according to her, includes a strong focus on things like weddings and religious holidays, so bridal and ethnic fashions are important.
She said partnerships with businesses can add a new way for companies to perfect their products and add more affordable luxury clothing, exposing them to a larger market.
Nykaa, the Indian lifestyle, beauty, wellness and fashion e-commerce retailer, announced plans for an IPO earlier in the year that could have valued it at over $ 4 billion. of dollars. The startup was looking to sell just over 10 percent of the equity, which is expected to raise $ 400 million or more.
Nykaa sells makeup, skin care, hair care, and health and wellness products from thousands of brands, both online and through outlets it has.
Read more: Nykaa, an Indian lifestyle retailer, sees a valuation of $ 4 billion when it goes public