WHEN FASHION MEETS BUSINESS
With corporate giants investing in Indian home grown brands and labels, the design landscape of our country is witnessing big changes
For the longest time, the Indian fashion industry was ignored by business stalwarts as it wasn’t considered a large-scale profitable trade. However, slowly and steadily, with the rise of bridal and ethnic wear market, corporate giants have begun eyeing homegrown labels as an investable sector.
In the previous week, Reliance Brands Ltd (RBL) partnered with the designerduo Abu Jani and Sandeep Khosla for a majority 51% stake. Speaking about the collaboration, the duo says, “Our collaboration with RBL will allow us to leverage their business expertise through their strategic investment, infrastructure and marketing.” However, they are only one of the many designer brands who have made an alliance with a multinational conglomerate company.
WHEN DID IT ALL START?
In 2009, the Indian fashion house, Anita Dongre received an outside investment from Kishore Biyani’s Future Group, and again in 2013 from General Atlantic. In 2014, Ritu Kumar received investment from private equity firm Everstone. In 2021, RBL acquired a 40% stake in homegrown designer label Manish Malhotra, promising expansion of MM Styles’ (parent company) retail presence in the country. Earlier this year, Malhotra launched his first western wear line — Diffuse. Recently, Anamika Khanna and Rahul Mishra formed a 60:40 joint venture with RBL for their brands AK-OK and a new ready-to-wear line, respectively. “We are looking at setting up stores in global cities like London, Paris, Milan, New York, Tokyo and Shanghai, and in Indian metro cities, Delhi, Mumbai and Hyderabad,” Mishra informs.
WHAT ABOUT A BRAND’S UNIQUE IDENTITY?
Speaking about the impact of corporatisation on Indian fashion industry, Sunil Sethi, chairman, Fashion Design Council of India (FDCI), says that it isn’t new to the world.
“In the West, global luxury groups such as Kering or LVMH (Moët Hennessy Louis Vuitton) have partnered with brands like Gucci, Saint Laurent, Christian Dior, Fendi, etc. and have taken them to great heights. A lot of people are sceptical about the ongoing acquisitions. However, big investors aren’t doing this for charity or to take away a brand’s identity; the creative rights stay with the designers,” he adds.
Echoing similar sentiments, designer Shubhika from Papa Don’t Preach says that it’s great that Indian fashion industry is now taken seriously by investors. “Corporatisation will take Indian fashion global, which it truly deserves,” she states. Designer JJ Valaya thinks of these investments as the right step. He says, “Well- known brands deserve to reach out to a larger audience, and such associations facilitate scalability which is mandatory for reach.”
I’m not business educated, so this will help us with technology and sustainability. MANISH MALHOTRA, Designer
The creative rights stay with the designers; the investors on the other hand will help with economies of scale and supply chain logistics for an exponential growth. SUNIL SETHI, Chairman, FDCI