16 July 2024, Mumbai

Securing a Brand Strength Index (BSI) rating of AAA, Raymond has entered the league of the top 10 strongest brands in India, as per a report by the world’s leading brand valuation consultancy, Brand Finance.

Regulated by the Institute of Chartered Accountants in England and Wales, Brand Finance is the first consultancy to join the International Valuation Standards Council.

As per the consultancy’s report, Raymond’s brand value increased by 12 per cent within India Inc, to reach $305 million.

GautamHariSinghania, Chairman and Managing Director, Raymond, affirms, this achievement conforms to Raymond’s enduring legacy, innovative business strategies, and unwavering commitment to quality and customer satisfaction. The recognition reinforces the brand’s commitment to maintain its leadership position in the industry. Dedication of its team, customers’ trust and overall strength are the major drivers of the brand’s growth in the industry he adds.

Approaching its 99th anniversary in September, Raymond boasts a retail network of over 1,500 brick-and-mortar stores across 600 cities and towns in India.

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15 July 2024, Mumbai

Franchising is rapidly reshaping the Indian apparel industry, offering a win-win situation for established brands and aspiring entrepreneurs. This growth can be attributed to factors like a booming retail sector which is expected to reach $2 trillion in value by 2032, according to a recent analysis by the Boston Consulting Group (BCG). Apparel is a major driver within this sector, creating a fertile ground for brand expansion. Rising disposable incomes, and a growing fashion-conscious population is giving a huge boost to apparel retail sector.

Popular business models in apparel retail

Three main franchising models are prevalent in the Indian apparel retail space.

Single Unit Franchise: This is the most common model, where a franchisee operates a single store of a particular brand. It's ideal for established brands with strong brand recognition for example, Levi’s, Manyavar and works well across segments super-premium, premium, value.

Multi-Unit Franchise: Here, a franchisee operates multiple stores of the same brand within a specific territory. This model is suitable for brands with a loyal customer base and a strong product portfolio that caters to diverse needs for example, homegrown women’s fashion brand BIBA. It's often seen in premium and value segments.

Area Development Franchise: This grants the franchisee exclusive rights to develop a brand within a larger geographical area. This model is well-suited for super-premium and premium brands seeking rapid expansion while maintaining brand control for example, Ralph Lauren. Here the franchisee replicates the entire brand experience, including store layout, product selection, and customer service. This model is ideal for brands with a specific brand identity, like Fabindia or Zara.

The franchising model is successful across segments, but with some nuances. For example, franchising offers a faster expansion strategy for luxury and premium brands like Hugo Boss or Tommy Hilfiger. However, due to the high investment required, franchisors look for experienced franchisees with a strong financial backing.

In the value segment franchising allows brands to penetrate new markets and cater to a wider customer base. Brands like Max Fashion or Biba leverage franchising to ensure consistent brand experience across a larger network.

Citywise approach

The tier-wise approach plays a crucial role in franchising. Tier I cities and metros like Delhi and Mumbai offer high disposable incomes and a fashion-forward consumer base. Here, all three franchise models can flourish, catering to diverse consumer preferences.

At the same time, in Tier II & III cities there is immense growth potential due to rising incomes and increasing brand awareness. Franchising helps established brands reach these growing markets with a demand for aspirational clothing. Single and multi-unit franchising models dominate here, focusing on value and premium segments to cater to the evolving needs of this demographic.

Weaving the omnichannel web

Franchising thrives in the omnichannel system as well as it franchisees can leverage the franchisor's online platform for real-time inventory management, ensuring they always have the right products in stock. Online platforms allow for click-and-collect options or in-store returns for online purchases, creating a seamless experience for customers. And franchisors can launch national marketing campaigns, while franchisees can tailor them to their local markets through the online platform.

Meanwhile the franchising landscape is witnessing a shift towards technology integration. Brands are increasingly incorporating technology to streamline operations, improve supply chain management, and enhance customer service within franchises for example departmental store Shoppers Stop's is now focusing on automation. Moreover, franchises are demanding and receiving more comprehensive support from franchisors, including training programs, operational guidance, and marketing assistance. And with consumers becoming more environmentally conscious, franchises are increasingly aligning with eco-conscious consumers by adopting sustainable practices in production and store operations.

Franchising thus is a powerful tool for growth in the Indian apparel industry. By understanding the different models, segment suitability, and city-specific considerations, brands can leverage franchising to expand their reach and cater to the evolving needs of the Indian consumer. As the industry embraces technology and sustainability, the future of franchising in Indian apparel looks bright, stitched with success stories waiting to be unraveled.

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15 July 2024, Mumbai

Footwear retailer Metro Brands (MBL) plans to open theinaugural Foot Locker store in an upscale mall in Delhi in October this year.

MBL has signed a multi-decade licensing agreement with the US-based athletic shoes and apparel retailer Foot Locker to open two to six stores in two to three cities within the current fiscal year.

The brand’s stores in India will typically range from 3,000 sqft to 5,000 sq ft. The first store will be based on the 'store of the future,' concept introduced in April this year.

Based on customer insights, this concept focuses on a bold storefront, a distinct in-store environment, expanded footwear and accessory selections, sustainability, dynamic digital fixtures, and other technological advancements. Additionally, the concept also equips Foot Locker’s sneaker ambassadors, known as Stripers with high-tech tools to enhance customer service.

MBL has also partnered with Nykaa Fashion to sell online in India. This exclusive partnership provides MBL with an access to various premium international brands, which it plans to selectively introduce in the Indian market, considering factors like climate conditions and regional preferences.

AnkurBisen, Senior Partner & Head – Consumer, Food & Retail at Technopak Advisors, notes, MBL’spartnership with Foot Locker enables the company gain a larger share of the casual footwear market.

Projected to expand by 7.85 per cent from 2024-29, the sneakers market is India is expected to reach a volume of $48.77 million by 2029, according to Statista. MBL's deep knowledge of the Indian market willhelp Foot Locker navigate the complexities of a diverse market, adds Bisen.

From Rs 68.74 crore during the corresponding quarter of the previous fiscal year, MBL’s profit roseby 126.3 per cent to Rs 155.57 crore inQ4, FY24.

During the quarter, MBL also extended its agreement with Crocs India to exclusively operate and own Crocs stores across western and southern states in India, as well as continue, renew, and operate existing stores in northern and eastern India.

As of March 31, 2024, MBL operated 836 stores in 193 cities across 31 Indian states and Union territories.

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 16 July 2024, Mumbai

Sportswear brand Decathlon has launched a new subsidiary, ‘Decathlon Pulse’ to pursue new opportunities for sustained growth. This wholly-owned subsidiary will help enhance Decathlon’s societal impact by offering innovative sports and wellness solutions.

To operate independently within the Decathlon Group, Decathlon Pulse will focus on three core strategies for long-term growth. It will firstly introduce and expand new business concepts to complement the brand’s core offerings, thus enriching the company's value proposition. Secondly, it will invest in forward-thinking companies within the sports ecosystem to accelerate sustainable business models.

Lastly, Decathlon Pulsewillredefine industry standards by acquiring pioneering sports brands and distributors.

In recent years, Decathlon has invested nearly €400 million in strategic partnerships, including collaborations with startups and major players like AllTricks and Bergfreunde. Led by Franck Vigo, CEO, Decathlon Pulse will further intensify these efforts. The brand will complement the parent company’s goals of enhancing sporting experiences worldwide, says Barbara Martin Coppola, Chairperson.

The brand will help Decathlon build long-term relationships and also maintain its full autonomy within the sports industry, adds Vigo.

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15 July 2024, Mumbai

Premium hosiery brand Balenzia has expanded its store presence in India by opening the brand’s second exclusive outlet within the retail segment of the Terminal IV of Chennai International Airport.

Shruti Gupta, Head-Strategy, Balenzia, says, the opening of the brand’ second store in Chennai signifies its unwavering commitment to ensure availability of premium products to customers.

One of the busiest and most dynamic airports in India, the Chennai International Airport is a crucial gateway to South India. Its strategic location allows the brand to connect with a diverse and affluent audience, enhanceits brand visibility and foster deeper connections with both domestic and international travellers.

The store features an open façade with an inner wall covered in Balenzia’s signature bright, graphic socks. The main focus of the store is Balenzia’s licensed socks featuring popular characters such as Harry Potter, Mickey Mouse, and the Power Puff Girls, etc. The store also offers other performance-driven styles to attract the high levels of foot traffic in the airport.

A leading manufacturer of premium quality socks for all occasions, Balenzia boasts access to over 70 licensed properties from renowned media franchises including DC Comics, Warner Brothers, HBO, Cartoon Network, Disney, and Marvel.

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15 July 2024, Mumbai

The demerged entity of the Rs 9,286-crore Raymond conglomerate, Raymond Lifestyle (RLL) has appointed prominent executives from India Inc as independent directors in preparation for a possible listing next month.

These newly appointed independent directors include VineetNayar, former CEO, HCL Technologies; GC Chaturvedi, former chairman, ICICI; AnishaMotwani, Board Member, Abbott; and Dinesh Lal, Board Member, Raymond. These appointments were made earlier this month.

GautamSinghania, Chairman, Raymond will assume the role of managing director of Raymond Lifestyle. Sunil Kataria, Current CEO, Raymond Lifestyle, will also join the newly formed board.

The diverse expertise and insights of these new board members will contribute to the company’s strategic vision and operational excellence, states Singhania. Their leadership will play a critical role in driving the company's long-term success and delivering value to our stakeholders, he adds.

The National Company Law Tribunal (NCLT) approved Raymond's restructuring plan, which included the demerger of its lifestyle business and the amalgamation of its consumer trading arm, in June 2024. Following the demerger, the Raymond Group will consist of three listed entities: Raymond Lifestyle, Raymond Realty, and Raymond.

Raymond Lifestyle will leverage its new governance structure to drive strategic vision and operational excellence, ensuring long-term success and value creation for stakeholders.

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 16 July 2024, Mumbai

Expanding its production capacity, leading Indian footwear brand Egoss has acquired a new unit in Agra.

This acquisition expands the brand’s production capacity from 1 million pairs to nearly 3 million pairs of footwear annually. It also helps the brand penetrate deeper into the footwear market and reach a broader customer base.

According to Ravindra Bhatia, Founder, Egoss, the expansion allows the brand to reach its goal without compromising on the intrinsic strengths built over the years.

Along with the brand’s commitment to innovation and its focus on being environment-friendly, the expansion also boosts the brands’ trust amongst customers

Egoss operates three brands: Egoss, Lafattio, and Ladyboss by Egoss. These brands are available online and at over 2,000 multi-brand outlets across India.

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15 July 2024, Mumbai

The consolidated net profit of DMart operator Avenue Supermarts’ during Q1, FY25 increased by 17.45 per cent to Rs 773.68 crore from Rs 658.71 crore in the corresponding quarter the previous year.

The company’s profit after tax (PAT) margin rose by 5.5 per cent during the quarter similar to the first quarter of the previous fiscal year. Its total revenue for the quarter increased by 18.57 per cent to Rs 14,069.14 crore from Rs 11,865.44 crore during the corresponding quarter in the previous year.

However, compared to Q1 FY ’24’s total expenses of Rs 11,006.92 crore, Q1 FY ’25’s total expenses grew to Rs. 13,056.61 crore.

In the first quarter of FY ’25, Avenue Supermarts’ earnings before interest, tax, depreciation, and amortisation (EBITDA) expanded to Rs 1,221 crore, compared to Rs 1,035 crore in the similar quarter of the previous fiscal year. However, its EBITDA margin remained stable at 8.7 per cent in Q1 FY ’25.

Neville Noronha, CEO and Managing Director, DMart says, the retailer recorded an increased contribution from the apparel sector during the quarter as was reflected in the gross margin uptick in Q1 FY ’25 as compared to Q1 FY ’24.

During the quarter, DMart also opened six new stores, bringing the total store count to 371 as of June 30, 2024.

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13 July 2024, Mumbai

Royal Fables, a heritage-inspired promotional platform, has teamed up with Hyatt's luxury hotel Andaz Delhi to host a premium bridal and wedding wear event on July 18-19. This Business-to-Customer (B2C) event, named The Wedding Edit, will feature heirloom textiles, vintage jewels, traditional art, and handcrafted fashion and home goods from over 50 businesses.

Andaz Delhi's General Manager, HardipMarwah, expressed excitement about the collaboration, highlighting the hotel's unique spaces adorned with artefacts celebrating culture, art, and heritage. He noted that this association allows them to create a truly immersive experience for guests and Royals by blending their signature hospitality with the timeless elegance that Royal Fables epitomizes.

Curated by Royal Fables’ founder Anshu Khanna and culture expert Charu Singh, the event aims to offer more than just a shopping experience. It will highlight the delicate nuances involved in royal wedding traditions and rituals. The Wedding Edit will also feature memorabilia exhibits around famed weddings of the past, adding a touch of nostalgia and cultural depth to the event.

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16 July 2024, Mumbai

To enhance the brand presence of their Bigboss range in South India, Dollar Industries has launched a comprehensive marketing campaign featuring actor Mahesh Babu.

Comprising television commercials, print media, social media platforms, in-store branding, product packaging, and outdoor media, the 360-degree campaign aims to reach a wider audience in the southern regions.

Vinod Kumar Gupta, Managing Director, Dollar Industries says, Mahesh Babu’s immense popularity and strong connection with the audience in South India will help the brand strengthen its presence in this key market. This campaign is a significant step in brand’s efforts to penetrate deeper into the southern market, avers Gupta.

Besides innerwear, Dollar has expanded its Bigboss range to also include athleisure, gym-wear, and casuals for men. The Kolkata-based company is a leading player in the innerwear and athleisure segment, with a strong nationwide presence, he adds.

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15 July 2024, Mumbai

A multi-brand fashion, beauty, and lifestyle department store, Shoppers Stop plans to foray into India's rapidly growing luxury retail market. The company plans to open large-format outlets that will also feature Aditya Birla Group’s premium offering, The Collective, in this fiscal year.

Shoppers Stop plans to launch two luxury fashion and lifestyle stores in FY 2025. These stores will retail international luxury labels and house The Collective, which offers brands like Kenzo, Versace, and Polo Ralph Lauren, among others.

More than just selling luxury products, premiumisation for Shoppers Stop also includes customers who have shifted their shopping behavior from the roadside stores to malls, says Kavindra Mishra, Managing Director, Shoppers Stop.

Focusing on premium brands to drive revenue growth, Shoppers Stop aims to increase the contribution of these brands’ to 55 per cent of the company’s revenue during FY25 from 47 per cent in FY24.

The retailer also plans to renovate its existing stores to align with a new premium brand identity. So far, Shoppers Stop has renovated 13 stores, with 71 per cent of its outlets now featuring the new identity. Additionally, the company opened 55 new stores in the FY2024.

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13 July 2024, Mumbai

Contrasting sharply with the overall apparel category's sluggish 6 per cent growth, India's fast fashion segment grew by 30-40 per cent in FY24. The country’s vibrant $10 billion fast fashion market is projected to soar to $50 billion within seven years, according to a new report by Redseer Strategy Consultants.

KushalBhatnagar, Associate Partner, notes, fast fashion is currently driving growth in the fashion industry. Apart from global brands like Zara and H&M, India’s fast fashion sector has been significantly boosted by homegrown brands like Zudio from the Tata group and online-first brands such as Newme, Urbanic, and Snitch.

SumitJasoria, Co-founder, Newme, adds, the success of fast fashion in India is being driven by global brands like Shein and Fashion Nova. Sheinepitomises ultra-fast fashion, accomplishing in seven days what others take two months to do, he adds.

The rapid growth of fast fashion is also being fueled by young consumers' desire to experiment with new trends and brands. Gen Z shoppers are particularly inclined to buy more clothes for social outings and to post on social media. With 362 million Instagram users in India, the majority being young, there is a strong drive towards fast fashion influenced by global trends and social media reels, notes Jasoria.

Last month, UK’s popular fashion e-tailerUrbanic launched a new brand, Savana, targeting Gen Z in India with limitless collections and styles. Rahul Dayama, Founding Partner, explains,the brand leverages Artificial Intelligence for predictive analysis, end-to-end logistics, and reducing dead stock. This helps minimise wastage.

Urbanic focuses on Tier I and II cities but sells across India online. Dayamaemphasiseson the brand’s psychographic approach, noting diverse customer bases including older individuals with youthful fashion preferences and Tier III city residents living a Tier I lifestyle.

However, the fast fashion industry also faces certain challenges, particularly in maintaining an agile supply chain to quickly transform emerging trends into market-ready clothing. Newme introduces 500 designs online weekly. Vedang Patel, Co-founder, The Souled Store, highlights the issue of market saturation, where identical designs become ubiquitous, leading to potential inventory problems when trends fade. A 10-year-old brand, The Souled Store thrives on timeless pop culture casual wear, growing at 60 per cent annually without relying on fast fashion.

Patel believes that as consumers' wardrobes fill up, they will make more discerning fashion choices. Conversely, Dayama is confident that fast fashion will continue to thrive, driven by the growth of social media platforms like Instagram and a competitive market. The Indian market is set to grow, and there’s room for many players, he concludes.

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