The Italian luxury menswear retailer Ermenegildo Zegna has created history by becoming the first multinational luxury brand to invest in a domestic fashion company. The move comes along with Reliance Brands, a subsidiary of Reliance Industries, as they jointly buy an equity stake in India-based fashion brand Raghavendra Rathore.
With this development, both the companies will look to tap the country’s luxury apparel industry in a bid to attract new customers. Both the involved parties reportedly refused to reveal the capital invested but went on to say that this move shows that there is a significant possibility of growth for the local fashion sector.
It is pertinent to mention here that the Italy-based Zegna is marketed in India through three Reliance Brands’ owned outlets.
Gildo Zegna, CEO, Ermenegildo Zegna Group, told media that the company might search for more such opportunities in India. “Like Reliance, we are strategic and not merely financial investors. As regards the investment in Raghavendra Rathore, it is significant as it is a first for a global fashion house making a strategic investment in the business of an Indian designer. In some sense, it heralds the coming of age and maturing of India’s luxury fashion business,” Gildo commented.
Markedly, Rathod, the Indian menswear brand known for its Jodhpuri Bandhgalas, at present runs seven standalone stores across the country.
