Reliance Brands terminates partnership with Replay and G-Star RAW
16 December 2024, Mumbai
A weakening demand for discretionary products has compelled Reliance Brands to terminate its partnership with Italian denim label Replay and Dutch fashion brand G-Star RAW. Closing the physical stores for these brands, the company is replacing them with other international labels from its portfolio.
Reliance’s portfolio after the latter acquired Genesis in 2017. Similarly, Reliance secured exclusive distribution rights for Replay in 2018, positioning it alongside other high-profile denim brands in its portfolio, including Diesel, Gas, Armani, and Superdry.
India’s youthful population and growing preference for Western fashion makes it a desirable market for global apparel brands. However, the country’s retail space has become increasingly competitive, with major players like Zara, H&M, Uniqlo, and Gap vying for market share.
While sales by fast fashion brands grew by almost 60 per cent post pandemic, the trend reversed over the next 6-8 quarters. Consumers began cutting back on their expenditure as inflation and interest rates rose. Job cuts in sector like startups and IT and consumers cut-back on non-essential spending led to a general economic slowdown in the country.
According to the Retailers Association of India (RAI), sales growth in organised retail segments—such as apparel, footwear, beauty, and quick-service restaurants—slowed to 9 per cent last year only to further decline to about 5 per cent in H1, FY24,
Reliance’s decision to pivot away from Replay and G-Star RAW reflects a broader strategy to adapt to changing market dynamics. By focusing on other international labels, the company aims to align with evolving consumer preferences and maintain its foothold in India's competitive retail landscape.
