Simply the best brands go global
going global. for Indian companies record breaker and risks another benefits year 2016 was are potential far from new. The in 2016. There The tendency is increase witnessed a dramatic investment has Indian outward economies. expansion into advanced for Indian companies’
Unlike China, India is eyeing countries closer to its shores. Its been observed that an increasing amount of China’s global investment is already going into the U.S. – the size of $14 billion in Chinese investment. Chinese firms from a variety of industries including energy, manufacturing, and consumer goods are all finding new markets in advanced economies. It’s time to for Indian brands too to take a closer look at the overseas markets.
The dynamics of India’s domestic market have changeddramatically in recent years. Once booming the domestic market in many sectors has seen that competition between other Indian and foreign firms is now extremely fierce, making diversifying into markets outside of India a very viable option.instead of competing on everdecreasing profit margins in a highly competitive domestic market, Indian firms are seeking to access the world-class technology overseas. With the latest technology, the firms are able to offer a better product or service than their domestic competitors at a higher profit per unit.
Translating international aspirations to international business execution requires having the right global management talent – both on the ground in overseas markets and back home in India at headquarters. There is no Indian company that has made this transition better than Infosys, a top IT firm.
Here we share details of a few companies’ who have pushed to go global :
Kishore Biyani’sfbbis one of first Indian retail brand to venture overseas. In an industryfirst, Kishore Biyani promoted Future Group is taking its fast fashion apparel retail brand ‘ fbb’ overseas.the retailer has entered into an equal joint venture with Oman-based business conglomerate Khimjiramdas (KR) LLC to open exclusive ‘ fbb’ stores in Oman.”we thought of getting into a region around us for exploring international forays and hence zeroed in on Oman. There are a lot of retailers who have come from that region into India and I think it’s time for somebody to go in that region. That’s the opportunity we have been looking for and have found the right partner to expand our business,” said Kishore Biyani, group CEO, Future Group, adding that fbb will be nearly 70% of the clothing it sells currently in India.
The joint venture, KR Future Fashions LLC, will see the partners invest a total ` 150 crore in the business. While 4-5 fbb stores will be launched initially, the plan is to take the number to 17-18 stores over a period of time. The first fbb store is likely to get operational in the first quarter next year. Interestingly, Biyani will also adopt a differentiated pricing strategy for the Oman market, wherein the apparel will be sold at prices that are lower than in India. Nailesh Khimji, director, Khimji Ramdas LLC, said, “We want to add to our strengths, which is distribution and logistics in Oman, and get apparel retailing expertise from the Future Group to form a company that will be strong in both areas. Once we feel, Oman has achieved the expected key performance indicators (KPIS), we will start looking at expanding into the region including all the Gulf countries.”
Future Group will also be leveraging KR Group’s logistics and distribution expertise (in Oman and Gujarat) to sell its fast moving consumer goods (FMCG) products there – KR LLC operates 75 supermarkets under brands like SPAR, Khimji’s Mart etc while also distributing products from P&G, Britannia, Amul, etc. “We are looking at adding Future Group’s food and FMCG brands on our distribution network as well,” said Khimji. The overall plan is to eventually expand the apparel retail operations as well as FMCG distribution across the GCC and MENA region in the years to come.
Biyani sees the fashion space as a huge opportunity in and outside India and hence started looking at markets including Sri Lanka, Bangladesh and UAE for the international foray. By next year, the company is targeting to sell close to 30 crore garment pieces and has a target of selling 100 crore garment pieces over the next four to five years.”that can only happen if we spread our wings. We currently operate in 27 out of 29 states in India. I believe, foraying into the UAE region is a huge opportunity and we will use this as a stepping stone to enter other geographies like Africa,” Biyani said, adding that the group’s clothing business in the current fiscal will be around ` 12,000 crore, including fbb, Central and other apparel retailing formats, and it can touch around 50,000 crore once the target of 100 crore garment pieces is met.
Woodland, the maker of footwear, apparels and accessories, has formed a partnership that will allow it to sell products in about 5,000 retail outlets in China. In a move aimed at globalising its brand, Woodland has tied up with Aokang International to sell footwear manufactured at its plants in Himachal Pradesh, Uttarakhand and Uttar Pradesh at the Chinese company’s multi-brand outlets.
In the first phase starting in May, Aokang, which has over 5,000 brand stores and owns five footwear brands, will stock Woodland shoes in 150 outlets. “After testing the market with 150 stores, we shall scale up stocks by September and be available in Aokang stores across China,” said Harkirat Singh, managing director at Woodland. Woodland will step up production at all three manufacturing units and plans to invest 15%-20% of its annual revenue — `. 1,200 crore in 2016-17 — to manufacture footwear for the Aokang stores. Woodland already sells its products in about 1,000 stores globally, including in Hong Kong, Russia and Dubai. That figure will increase to 6,000 stores once it starts sales at all Aokang stores.
“The collaboration helps Aokang to expand existing business scope and channels,” said Zhentao Wang, chairman at Aokang International. “It is also good for the company’s long-term planning and development needed to grow in the global market.” Woodland will also offer Aokang footwear at its outlets in India and its online platform. The company plans similar collaborations in some South African countries and Canada.
Hidesignis refocusing on overseas markets. India’s consumer market is getting increasingly conscious by the day about what it totes. Aspirational brands, such as Hidesign, are striving to carve a niche for themselves in India while focusing on improving their presence in the global market. Until year 2000, Hidesign as a brand was primarily focused on the international market. This was also the time they started opening stores because they couldn’t find distributors in India, even though there were a lot of established distributors outside India. As a result, the brand grew more directly and organically in India.
However, now again Hidesign is realigning its focus back on the international market. The brand has been relaunchedin America and UK. Earlier, the brand had always been present in these countries, but through distributors. Also, it shall is entering countries such as Dubai and Oman in the Middle East and also foraying into Africa - Kenya and Congo,as these are countries that are going through similar type of growth trajectories India has already been through. There is an aspirational quality to the brand in these markets and unlike Italy and other markets which are already saturated these markets are more open to new brands. Hidesign recently sent up exclusive stores in Hanoi, Ho Chi Minh City and Johannesburg and plans to venture in the US.
India is the largest market, contributes between 75 percent and 80 percent of our revenue followed by the U.K., Australia and the USA. Almost 20 percent of our international business comes from the U.K. alone. In India, Hidesign has 74 exclusive distributors and 150 shop-in-shops.
1979, That was the year when the Company now known as Mirza International was founded under the name of ‘Mirza Tanners Private Limited’ by Mr. Irshadmirza and Mr. Rashid Mirza. During this phase, Mirza International took a significant leap, by venturing into newer areas which were extensions of its existing competencies. The globalshoe market was then looking upon outsourcing of leather footwear in a big way. To take advantage of this opportunity, Mirza International diversified into manufacturing of shoes. Very swiftly, five state-of-the-art manufacturing units were setup across Unnao, Noida and Greater Noida.having made a foothold in the footwear business, Mirza International quickly reorganized itself by setting up in-house design and development studios, marketing offices and a strong distribution and logistics network. After successfully reorganizing itself, the Company moved a step ahead of others by launching its own brands ‘Red Tape’ and ‘Oaktrak’.
Today, Red Tape has emerged as the one of the most stylish lifestyle brands available. Through strong emphasis on quality, design and craftsmanship, the brand is highly successful in the mature western markets of UK and USA, apart from having a strong domestic market.having firmly established its product lines and market geographies, the Company spread its wings to several other countries through its marketing companies and networking associates. Some of the countries where the Company products have a significant presence are UK, USA, Germany and France.
Da Milano, a nearly three-decade old high end leather accessories brand has launched its first exclusive store at the world’s most coveted shopping destination, Dubai. Spread across an area of 2,500 sq.ft. at the shopper’s paradise, Ibn Battuta Mall, the boutique has been custom designed keeping in mind Da Milano’s unique style and creative aesthetics with the latest technical know-hows and an ambience that exudes luxury. The store will retail both Da Milano and Rosso Brunello falling under the house of the Da Milano group.
Holding a signature medallion of Da Milano, the boutique carries the latest Spring Summer’17 collection along with the brands signature styles. From handbags, travel, and business essentials to footwear – a complete range of lifestyle products is on display. An extensive collection of small leather goods is also showcased including wallets and belts. Talking about the expansion, Managing Director, Da Milano Group, Sahil Malik said, “It was just a matter of time. Clients from across continents have been yearning for the brands presence in global retail destinations. The Middle East is a fast growing and emerging market and holds immense growth opportunities and we plan to expand to another 10 stores within the next 15 months.”opening its horizons further to elite and cosmopolitan consumers who appreciate fine craftsmanship, the group launched another exclusive store in Dubai at Burjman Mall. “Not only will we endear them with the renowned Da Milano quality, we will serve them with a sublime retail experience”, assured Sahil Malik.
recently PRO specialist leading menswear its Hameedia, Sri Lanka’s range throughout premium shoe care introduced the PRO by leading manufacturer Sri Lanka developed retail network in range of products shoe Care, the PRO and exporterm.v. quality cleaning and easy-to-use, high every offers customer’s on to step out in style that enable them is shine solutions care brand that a cutting-edge shoe occasion. PRO is strong retail presence customer base and care attracting a loyal India, the PRO shoe asian region. In across the south including leading in over 1200 outlets first sri range is available Hameedia is the and fashion stores. ongoing footwear retailers Lanka, as part of its bring PRO to sri Lankan brand to and offer customers its product portfolio effort to strengthen in shoe care. the very best solutions of PRO shoe exclusive distributor Hameedia is the PRO selection 23 unique sri Lanka and a careproducts in Mansion and other found at the envoy products can be was established island-wide. Hameedia in sri Hameedia outlets a fashionable brand grown to become under in 1949 and has custom tailoring for their high quality Lanka. Renowned clothes for gentlemen, andready-made of the Bespoke category house a collection brand retail stores Raymond, the Hameedia multi- envoy, signature, brands Le Bond, 30 outlets quality menswear a network of over to name afew. With Lee and adidas Hameedia experienced team and a large and across sri Lanka also expanded globally presence and has has a strong local Maldives and australia. with outlets in the introduced to the the range being Commenting on and Managing Ketan Vyas, Founder srilankan market, excited to partner Care said: We are director - M. V. shoe Group, and with the Hameedia professionalism as well with their have been impressed capabilities. network and distribution as their strong sales will change products and services this range of new shoes and leather take care of their the way consumers the reach and the has the reputation, goods. Hameedia in this is needed to deliver commitment that V. shoe Care Head of sales - M. Lokesh Chopra, market for us as it is an important added: “sri Lanka are retail sector. We fast growth in the is experiencing Hameedia Group, to partner with the extremely happy retail standards. for setting luxury which is known PRO products and the addition of the We believe that will provide Hameedia portfolio, accessories to the the Care and consumers with discerning sri Lankan ensure the durability that they need to cleaning solutions with the technical I am also impressed who of their footwear. Hameedia team, enthusiasm of the competency and as exceptional support products, as well that deliver top-notch this is a great partnership, services to all customers. to the next level.” take our brand PRO will enable us to offers eight focused range of products the PRO shoe care called Clean, Care, and leather care categories for shoe accessories. Fresh, protect and Color,shine, Renew, Customerscan consult
Fabindia a well Indian brandis making inroads in highs streets and malls of Europe, US and the Far East. Fabindia has made a presence in Italy, Dubai and Singapore. Fabindia’s Singapore store started in January this year.
What’s making the brand click is the Indianness, uniqueness and rich designs, fabrics and colours of India. For Fabindia most of the global outlets are either joint ventures or with a local partner. Last year, Fabindia too fully acquired Uk-based women’s wear and jewellery retailer EAST, in which it had been investing in stages since 2009.
A sign above one of the shops on Via del Banco di Santo Spirito in Rome will have most Indian passers by staring hard in surprise. It reads: Fabindia.
“In spite of the recession in Europe, our store in Italy continues to attract crowds,” says William Bissell, Managing Director, Fabindia. “It is wonderful to have a presence in one of the fashion capitals of the world.” He is equally gung ho about the two other stores. “Singapore and Dubai are important markets not because of Indian diaspora there, but because they are international shopping hubs, with considerable tourist traffic.”fabindia has ‘European’ sizes in clothes for its shops, and also eschews such labels as ‘hand wash’ for any items, since the very concept of washing by hand has been forgotten in the West.
Husain Beauty brand Shahnaz including has a host of stores, of London and one in the heart island of another on the Greek Mykonos. beyond Having set up shop now looking India, the brandis retail at increasing their for example, presence. Husain, exclusive opened four more year, all of retail outlets last very them in places where Minsk in few Indians venture: Peru, Moscow Belarus, Lima in in Russia. and St Petersburg out Though they ventured them have long back, all of in recent markedly aggressive formula years. Indian-ness for Shahnaz has worked well products, most Husain’s beauty Ayurvedic of which have an to sell base. “We are trying in our a whole civilization Husain.”i jars,” saysshahnaz to Khurja to personally went designs inspect the pottery in which we and chose the jars says package our products,” (Khurja in Shahnaz Husain. a pottery Uttar Pradesh has centuries.) tradition going back
brand entered the Stressless shoe a couple of years European markets it has built a ago and since then for its products. strong loyal base offering inspired Stressless is an of yoga that aids by the ancient art balancing in naturally counter the stress. Crafted with stylish finest leather, these muscles to shoes relax the comfort provide optimum and relaxation. Breathable feet socks cushion your in effectively and help hormones reducing stress and to calm your body and soul. Yogic flexibility soles sturdy gripping Shoes make Stressless of the perfect example Ishan Hybrid Technology. Alberto Sachdeva, Director strive to torresi says , “We ahead always be one step believe of the times. We shoe has that the perfect It is this not been invented. that positive dissatisfaction compels us to constantly improve upon our the first footwear. We are advanced company to use in athletic technologies achieve casual shoes to lightweight comfort, to and the first company comfort engineer walking in dress and casual shoes.” The company’s producing Commitment to are top quality products a result of innovation, research and development around of the latest trends the world.
bazaar fashion at big STITCHING GROWTH including fbb, will be ` 12,000 crore, in the current fiscal clothing business ▶ ▶ Future Group’s pieces is met crore garment Central formats of 100 once the target around 50,000 crore ▶ ▶ It can touch