India’s largest conglomerate invests in high-quality, local designer brands to help them thrive and become a global will.
In October, Reliance Brands Limited (RBL), the subsidiary of oil and telecommunications company Reliance, announced that it had purchased a 40% stake in the label of the same name from renowned fashion designer Manish Malhotra. A 7 days later, the company bought more than 50% stake in Ritu Kumar, India’s oldest fashion house.
Malhotra, who has been dressing Bollywood’s big stars for the last 30 years, founded his label about 15 years ago. It has annual sales of $30 million (£22 million), according to Forbes.
“I have practical knowledge, but for someone who hasn’t studied the fashion business, my dreams. And stories need this support to go global,” he told the at his design workshop in the Mumbai suburb of Santacruz.
“Etiquette needs to be better organized. It’s very family-friendly.”
This is a logical step and in line with international trends, said Ankur Bissen, the Senior Partner at consultancy Technopak. She points to several fashion relics – Dior, Chanel, Hugo Boss, Saint Laurent (YSL) – that do the same. They “institutionalize” themselves by surpassing the founders of the label of the same name.
“Many designers in India are now in their 50s and 60s and need to take on that reputation,” Bissen said. Reliance aims to build more prominent businesses than Malhotra and accelerate the company’s foray into e-commerce.
RBL’s current portfolio includes global brands such as Armani Exchange, Bottega Veneta, Jimmy Choo, Kate Spade New York, Michael Kors, Tiffany & Co. But RBL isn’t the first or only company to invest in its label. Aditya Birla Fashion, owned by India-based multinational Aditya Birla Group, has been doing the same in past years.
It has acquired stakes in significant couturiers such as Sabyasachi, Tarun Tahiliani, and Shantanu & Nikhil.
“International brands are not going to please the Indian public. But, they are trying,” said Nonita Clara, editor-in-chief of Tata Cliq Luxury.”Clothing in India still has a particular Indian taste. So if you want to grow in the fashion market, you have to grow up with particular Indian tastes.”
As weddings and religious festivals primarily drive fashion shopping in India, she adds that the appeal of the home brand lies in its focus on bridal and ethnic attire. And by partnering with a corporate company, designers can “fine-tune and layer. Their products to reach a larger market through more affordable luxury clothing.
Earlier this year, Sabyasachi was the first Indian designer to put out a collection in collaboration with Swedish fashion giant H&M. And Rahul Mishra, an aspiring haute couture designer, partnered with the popula. And affordable Indian label – W – to bring the collection to market ahead of this year’s festival season.