Big Indian companies have been buying stakes in homegrown designer brands to scale them up and go more global, BBC writes.
This could lead to a near future in which the luxury retail market is a more mature entity.
There are several examples, including Reliance’s buy of 40 percent equity in celebrity fashion designer Manish Malhotra’s label. Malhotra has been working with Bollywood stars for 30 years and has run his label for 15. The report says partnering with Reliance was a way to focus on Malhotra’s directorial debut, but also a way to expand internationally.
“I have the practical knowledge, but for someone who has not studied the business of fashion, my dreams and stories need that backing to go global,” he told the BBC at his design workshop in Mumbai city’s Santacruz suburb, the report says.
In addition, there’s the case of Aditya Birla Fashion, which has acquired stake in couturiers including Sabyasachi, Tarun Tahiliani and Shantanu & Nikhil.
And Nonita Kalra, editor in chief of Tata CliQ Luxury, says international brands “are not going to appeal” to an Indian audiences — and that those looking for growth have to keep in mind the specific tastes of said market, which she says includes a heavy focus on things like weddings and religious festivals, so bridal and ethnic fashions are important.
She said the partnerships with corporate companies can add a new way for companies to perfect their products and add more affordable luxury wear, exposing them to a bigger market.
Nykaa, the Indian lifestyle, beauty, wellness and fashion eCommerce retailer, announced plans for an IPO earlier in the year which could’ve valued it at over $4 billion. The startup was looking to sell slightly over 10 percent of the equity, which was expected to raise $400 million or more.
Nykaa sells makeup, skincare, hair care, and health and wellness products from thousands of brands, both online and in the retail locations it has.
Read more: India Lifestyle Retailer Nykaa Eyes $4B Valuation In IPO