09 July 2024, Mumbai

Leading menswear designer, ArjunKhanna has launched a collaborative collection with the Bombay Shirt Company (BSC). Launched on July 06, the debut BSC X AK collection will be followed by several limited edition collections over the year. Reflecting Khanna’s deep passion and his expertise in denim, the debut collection features denim ready-to-wear shirts.

The BSC X AK collection comprises 12 exclusive ready-to-wear shirts, including 10 crafted in various shades of denim and 2 in a distinctive fabric. These pieces will be exclusively available for purchase at Bombay Shirt Company stores nationwide and online.

AkshayNarvekar, Founder and CEO, Bombay Shirt Company, opines, the collection reflects Khanna’s meticulous attention to detail and his extensive knowledge of the denim fabric.

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08 July 2024, Mumbai

Diverting from its previous plans to set up larger outlets in the Delhi NCR region, Ikea aims to introduce a scaled-down store concept in India. These stores will spread across 25,000 sqft, and will be significantly smaller than the retailer’s typical store sizes globally.

Through this move Ikea aims to ensure Indian consumers reach an Ikea location within a 30-minute radius.

Previously, Ikea had been exploring spaces in the range of 70,000 sqft to 100,000 sqft in Delhi NCR malls. However, Ikea’s parent company, Ingka issued a directive to prioritise smaller city-center stores. The retailer is currently negotiating with mall operators for these compact store formats.

Historically known for its expansive warehouse stores spanning 400,000 sqft to 500,000 sqft, Ikea initially entered India with similarly large outlets in Hyderabad, Mumbai, and Bengaluru. The company later experimented with smaller formats, such as an 80,000 sqft store in Mumbai's Worli area and a 72,000 sq. ft. outlet at R City Mall in Ghatkopar, which closed earlier this year due to poor performance.

Globally, Ikea has introduced Planning Studios in cities like Paris, Moscow, Toronto, and New York City, designed to showcase select product categories tailored for urban consumers. It remains unclear whether the new smaller stores planned for India will follow the Planning Studios model.

In addition to its retail initiatives, Ingka Groupis developing two IngkaCentres in Noida and Gurugram, which will feature large Ikea stores alongside other brands. This strategic expansion underscores Ikea's efforts to adapt to evolving consumer preferences and market conditions in India's retail landscape.

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An ethnicwear brand renowned for its exquisite chikankari craftsmanship, ‘House of Chikankari’ has teamed up with a growth advertising and analytics company, ETML to expand its online presence in India.

House of Chikankari aims to leverage ETML’s expertise in data analytics and digital strategy to enhance its online footprint and accelerate its growth plans across the country.

RaghavKansal, Founder and CEO, ETML, says, the company’s extensive experience in fashion e-commerce and data-driven marketing strategically positions it to develop a digital strategy that will amplify their online visibility.

AakritiRawal, Co-founder, House of Chikankari, notes, ETML's expertise will play a crucial role in propelling House of Chikankari to new heights. Their proven track record in e-commerce, especially within the fashion sector, aligns perfectly with the brand’s vision to expand and strengthen its position.

Established in 2020 by the mother-daughter duo Poonam and AakritiRawal, House of Chikankari currently operates through its brand website and prominent e-commerce platforms in India.

09 July 2024, Mumbai

Coinciding with the festive season, luxury brands are gearing up to launch new stores in India, signaling a potential boost for the industry following a two-month slowdown due to extreme summer heat and general elections.

In Delhi, brands such as Aquazzura (accessories and shoes), Diptyque (perfumes), and Golden Goose (menswear) are preparing to open stores. Clothing and accessoris brand Amiriwill hold a small popup in Delhi to test the market.

The luxury sector is expected to see a gradual increase in sales starting this month, reaching normal levels as the festive season approaches. AmitPande, Business Head - The Collective & International Brands, ABFRL, observes a sector recovery in June following the summer and general elections, with expectations of good growth around the festive season.

DLF Emporiowill soon launch a new zone for 'pret' or ready-to-wear collections from young Indian designers. PushaBector, Senior Executive Director, DLF Emporio highlights the broadening of luxury categories and the influx of millennial and Gen Z consumers discovering luxury through digital media.

While walk-ins are declining globally, online shopping is growing rapidly, and strong client relationships reduce dependence on walk-ins, notes Pande notes. Leather goods and accessories are less affected by the slowdown than clothing, with work-wear making a comeback while categories like sweatshirts and loungewear are tapering off, he points out.

Operator of around 40 stores across The Collective, Ralph Lauren, Hackett London, Simon Carter, Ted Baker, Fred Perry, and others, ABFRL plans to add five more stores in the coming months. In 2025, luxury department store Galeries Lafayette plans to expand in Mumbai and Delhi.

India's growing appetite for luxury goods and services is being driven by rising disposable incomes and the booming ultra-rich population. According to a Goldman Sachs Research report titled 'The Rise of Affluent India,' the affluent consumer cohort is expected to grow from 60 million in 2023 to 100 million by 2027. This shift has led global luxury brands to target India, especially after luxury consumption slumped in China during the pandemic. Malls dedicated to the wealthy, like Reliance's Jio mall in Mumbai, have emerged, and brands like Brioni and Christian Louboutin have expanded their presence in India.

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Indian men's ethnic wear category is experiencing major growth spurt, with a market size estimated to be over Rs 2.2 lakh crore ($30 billion) in FY2023. This segment, though comprising only about 6 per cent of the overall men's wear market, is projected to move forward at a Compound Annual Growth Rate (CAGR) of nearly 20 per cent for the next four years, as per consulting firm Technopak. This is significantly higher than the projected growth rate of the overall men's wear market.

A market poised for takeoff

The organized market currently has only a fraction of the total pie, with estimates suggesting it's around 30 per cent. This vast unorganized sector, pegged at roughly 70 per cent, presents a massive opportunity for established players and new entrants alike].

Several factors are fuelling this growth.

Rising disposable incomes: India's burgeoning middle class has more money to spend on discretionary items like ethnic wear.

Increased significance of occasions: Weddings remain a key driver, with a surge in demand for premium wedding wear showcasing a consumer desire for high-quality occasion wear.

Shifting consumer preferences: A growing fashion consciousness among men is leading them to experiment with ethnic wear for festivals, religious ceremonies, and even casual outings. Moreover, the increasing popularity of online shopping offers convenience and wider product selection, further accelerating market growth.

Growing investor interest

This robust growth potential is attracting significant investor interest. Several startups in the men's ethnic wear space have secured funding. For instance, Manyavar, a leading brand, has received multiple rounds of funding with their valuation touching Rs 1,500 crore ($206 million). Other notable names receiving investor backing include Veilcraft and Sherwani Studio.

These investments highlight the investor confidence in the sector's ability to generate significant profits. This robust growth potential is attracting significant investor interest. The Indian wedding industry alone is expected to reach Rs 5 lakh crore ($68.7 billion) by 2025. This translates to a lucrative market for premium menswear brands.

The business model of men's ethnic wear companies typically involves a high-margin strategy. The focus on premium fabrics, intricate designs, and occasion-specific wear allows brands to command premium prices. This, combined with a growing customer base, translates to promising profit margins and high valuations for successful companies.

The Indian men's ethnic wear industry is poised for big growth. With a large and expanding market, rising disposable incomes, and a shift towards online shopping, this sector offers a compelling proposition for investors and entrepreneurs alike.

Women’s ethnic wear brand, Kalkihas opened its second exclusive outlet in New Delhi, located in Pitampura.

Spanning multiple floors, the store features a dedicated section for bridal couture and offers a wide array of ready-to-wear and occasion wear options, including contemporary styles. Designed with a blend of modern and heritage aesthetics, the interior is adorned with plants, aiming to appeal to Indian women of all age groups.

Nishit Gupta, Co-founder and Director, Kalki states, the expansive 10,000 sqft multi-storey outlet will serve as the epicenter of signature ethnic fashion for all festive, wedding, and celebratory needs. It will serve as a place for intimate family shopping experiences and creating cherished memories for generations to come.

09 July 2024, Mumbai

To compete with the French retailer Decathlon and capitalise on the rising demand for athleisure products post COVD-19, Reliance Retail plans to launch a new sports format across 8,000-10,000 sqft in top city malls and high streets.

Driven by increased fitness awareness and rising demand for athleisure wear, the sales of leading sports brands have surged in the past two years. Brands like Puma, Decathlon, Adidas, Skechers, and Asics have seen 35-60 per cent Y-o-Y growth since FY21, with combined revenues increased to Rs11,617 crore in FY23 from Rs5,022 crore two years prior.

With its first Indian store opening in 2009, Decathlon revenues’ rose from Rs 2,936 in FY22 to Rs3,955 crore in FY23, as per regulatory filings from the Registrar of Companies.

The company is currently negotiating with the Indian government to sell products from rival brands in its stores, potentially operating as a multi-brand retailer. Globally, rival brands contribute a fifth of Decathlon's revenue, but in India, the company currently sells only its own label products due to FDI regulations.

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Leading fashion hypermarket chain Vishal Mega-Mart has partnered with Officenet, a cloud-based HR solution provider, to enhance operational efficiency across its 650+ stores in India. This strategic collaboration aims to boost efficiency by 30 per centby using advanced AI and ML technologies.

Officenet’scustomised HRMS framework will streamline workforce management at Vishal Mega-Mart, tackling complex tasks like real-time headcount management and employee performance optimisation. The system features geofencing for security and employs facial recognition to ensure data integrity and privacy.

The platform centralises employee data, facilitates targeted training, and encourages engagement through feedback mechanisms. With real-time insights and robust analytics, Vishal Mega-Mart will be able to make informed decisions, maintaining competitiveness in the dynamic retail landscape.

SonaliChowdhry, CEO, Officenet, remarks, the collaboration signifies a commitment to enhancing Vishal Mega-Mart’s HR landscape, empowering its workforce, and elevating overall performance.”

Dhruva Kumar Dubey, CHRO, Vishal Mega-Mart, adds, a holistic approach to HR management, will enable the company to empower its workforce and propel it to new heights of success.

India's fashion scene is about to witness a revolution, driven by the breakneck pace of fast fashion. A new study by Redseer Strategy Consultants highlights, the Indian fast fashion industry is projected to grow to a staggering $50 billion market by FY 2031 (FY31). This signifies a massive leap from its current valuation of around $10 billion.

Millennials and Gen Z fuel the fire

The report highlights the growing influence of millennials and Gen Z as the key drivers of this growth. These demographics crave affordability and constant access to the latest trends, a void that fast fashion perfectly fills. Redseer points out that in FY24, while the broader Indian fashion sector grew by a modest 6 per cent, fast fashion increased at an impressive 30-40 per cent.

The allure of fast fashion

"Fast fashion has democratized the fashion industry," says Kushal Bhatnagar, Associate Partner at Redseer Strategy Consultants. "For millennials and Gen Z, it offers a game-changing experience – trendy styles at accessible prices." Redseer identifies five key ingredients that define a successful fast fashion brand in India:

• Timely trend Identification: The ability to spot and capitalize on emerging trends quickly is crucial. Fast fashion brands excel at identifying and capitalizing on the latest trends. This agility allows them to quickly adapt their offerings to what's hot, ensuring their collections resonate with trend-conscious consumers.

• Rapid prototyping & production: Fast fashion thrives on a speedy turnaround, churning out new collections at a much faster rate compared to traditional fashion houses. Redseer mentions a shift from the traditional 2-3 collections per year to a staggering 50 collections annually for fast fashion brands.

• Nimble supply chain: Maintaining a flexible and efficient supply chain is paramount to ensure swift production and delivery of trendy garments. A streamlined supply chain is the backbone of fast fashion. Brands prioritize quick turnaround times, allowing them to get new styles from design concept to store shelves in a remarkably short period.

• Attractive pricing: Affordability is at the heart of fast fashion's appeal. Brands need to strike a balance between offering trendy pieces and keeping them accessible to a budget-conscious audience.

• Effective customer engagement: Building a strong online presence and utilizing social media to create viral trends and drive customer engagement is essential for success in the fast fashion landscape.

A market ripe for the taking

While the Indian fast fashion market is currently valued at approximately $10 billion, Redseer's report suggests immense potential for growth. This is further emphasized by the fact that the Indian market is dwarfed by international giants like Shein, which is three times larger. This vast headroom for expansion signifies a lucrative opportunity for both domestic and international fast fashion brands.

The Redseer report concludes with a clear message: "The time to build a fast fashion brand in India is now." With the right approach and a focus on catering to the evolving needs of young Indian consumers, fast fashion is poised to become a dominant force in the country's fashion industry.

08 July 2024, Mumbai

Flipkart India’s intensified efforts to achieve profitability, particularly in its fashion and lifestyle segmentshave increased the pressure on major brand partners. Since January, Flipkart's B2B arm has directed its category managers to extract higher business volumes from brand partnerships, marking a significant escalation from initiatives that began during last October's Big Billion Days sale.

Through these efforts, Flipkart aims to achieve EBITDA positivity within six to eight months. However, this goal necessitates a stronger performance from its fashion category, according to insights from a former Flipkart executive.

Among the brands feeling the impact of Flipkart's strategy is Spykar Lifestyle, a longstanding denim-wear partner that generated Rs 200 crore (approximately $24 million) in annual sales on the platform in 2023. ShrikantTripathi, E-commerce Manager, Spykar, notes, Flipkart approached them in December 2023 for margin increases, a proposal they declined.

Flipkart's negotiation tactics extend to prominent brands such as Nike, Adidas, Puma, Woodland, Casio, and Aditya Birla Fashion Retail (ABFRL), all of whom are reportedly facing similar demands for enhanced revenue contributions. Sources familiar with the matter, including former executives from Nike and other brands, likened Flipkart's approach to annual rent negotiations, where the platform seeks increases while brands aim for stability or reductions.

This aggressive stance by Flipkart aligns with its broader goal of achieving profitability ahead of a potential IPO, underscoring its strategic shift towards tighter financial performance in preparation for public listing.

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With consolidated revenues rising to Rs. 2,409 crore in FY24 from Rs. 2,247 crore in the previous year, Gokaldas Exports is strengthening its global footprint in the apparel industry. The growth reflects the company’s dedication to enhancing production capabilities and market reach through strategic investments and acquisitions.

The company recently launched Phase I of a new sewing factory in Bhopal, Madhya Pradesh, with an annual capacity of 3 million pieces. Expected to complete next year, the Phase IIof this project, will double this capacity. Additionally, Gokaldas has also commissioned a new knits processing facility in Perundurai, Tamil Nadu.

Gokaldas has also acquired Atraco and Matrix Clothing (MCPL) for a combined investment of Rs. 934 croreto further strengthen its market position and diversify its product offerings.. These acquisitions will provide the company access to high-value knitwear, new customer bases, and cost-effective production locations.

SivaramakrishnanGanapathi, Vice Chairman and Managing Director, states, the acquisitions will provide a solid foundation for margin growth. Atraco and Matrix will complement the company’s existing business and enhance productivity through geographic diversification, new customer access, and strategic positioning.”

Founded in 1979, Gokaldas Exports has evolved into a comprehensive solution provider for some of the world’s leading apparel brands. With an annual turnover of $290 million in FY24, the company is one of India’s largest apparel manufacturers and exporters, supplying products to over 50 countries.

Following the acquisitions, Gokaldas Exports now operates over 30 production units with more than 30,000 advanced machines, capable of producing around 87 million garments annually. The company employs over 51,000 people, driven by a vision of becoming a globally reputed apparel manufacturer focused on innovation and sustainability.

Aditya Birla Fashion and Retail Ltd (ABFRL) has signed a visual merchandising deal with a retail distribution and solutions company, Channelplay.

As per the agreement, Channelplay will improve the visibility and market share of ABFRL’s White’s Primer and Seep Guard products. It will also enhance the company’s brand awareness across the nation.

For this project, Channelplay will develop and implement a program to increase the brand awareness, strengthen market share, and drives sales growth for ABFRL’s new products, says YasirHussain, Vice President, Channelplay.

Having a network of over 30,000 dealers and retailers across India, Channelplay will install Shop in Shop (SIS) units across all stores to enhance Aditya Birla’s share of shelf space and product visibility within the stores. This plan also includes designing and implementing a pilot channel loyalty program and promoter activation plan for 50 locations.

ABFRL owns a repertoire of brands such as Louis Philippe, Van Heusen, Allen Solly and Peter England. It has long-term exclusive partnerships with select international brands such as Ralph Lauren, Hackett London, Ted Baker, Fred Perry, Forever 21, American Eagle, Reebok and Galeries Lafayette. It has a network of 3,977 stores across approximately 33,535 multi-brand outlets.