For many businesses, mergers, mutual partnerships and collaborations are instrumental for growth, and for some, it is a supporting factor for survival. And looking at the recent developments, it is no exaggeration to say that the Indian apparel industry especially the retail sector has proved it better. There is a long list where overseas brands have collaborated with Indian companies and are enjoying growth with Indian partners (see list below). On the other hand, Indian companies are also following this approach as with an investment of Rs. 200 crore, Aditya Birla’s TMRW acquired a majority stake in D2C brand Bewakoof. It also acquired a 51 per cent stake in TCNS Clothing for Rs. 1,650 crore. Reliance Retail has made its strong presence in the innerwear market with acquired digital brands Clovia, Zivame and Amante. Now, Reliance is set to buy Alia Bhatt’s kidswear brand Ed-a-Mamma for Rs. 300-350 crore. Not just retail giants, even emerging brands are also following similar steps like fashion brand Styched acquired Shark Tank India fame sneaker start-up Flatheads. With the changing market dynamics where giants have deep pockets and emerging companies need support, such developments are expected to continue to take place.
Foreign brand’s association with Indian partners
Overseas brand’s collaboration with Indian companies is the strongest example of how these joint efforts have proved to be successful. The operation of Zara stores in India is managed by Inditex Trent Retail India Private Ltd (ITRIPL) and has resulted in a significant surge in its revenue within the Indian market as for FY ’23, it reached Rs 2,562.50 crore (at a growth rate of 40.42 per cent).
Similarly, India has emerged as the second largest market after the UK for M&S and the British retailer is looking at double-digit growth in terms of store addition. M&S opened its first store in India in 2001 and in 2008 signed a JV with Reliance Retail. ABFRL recently formed a partnership with Galeries Lafayette to open luxury department stores and a dedicated e-commerce platform in India.
Comparatively lesser-known but strong companies are also active in this segment like Murjani group partnered with Neometa, a fashion upstart to introduce the brand Gloria Vanderbilt in the Indian market. The brand is known for its ‘Best Fitting Jeans for Women’.
For overseas brands, the franchise model is a low-risk way for investors to enter a new market. With the help of franchising, international fashion brands can expand their reach in India, offering a win-win situation for both investors and brands. The opportunities in the franchising sector in India are immense and it is an exciting time to be a part of this burgeoning industry.
It is also significant to mention here that the Indian consumer is largely becoming a very globally influenced consumer and there is a lot of global inspiration coming. Indian companies are continuously trying to offer consumers global brands.
With all factors contributing to the growth of India as a strong economy and consumers’ spending power, the market will keep witnessing the entry of overseas brands in India and collaborations and JVs will also continue. This is the time to be in India and this next decade, from a consumer tech perspective, is going to be the best one might have seen in the history of retail.
Indian companies having alliance with overseas brands
| Indian companies | Overseas brands |
| Reliance Brands | Over 50 international brands like Armani Exchange, Burberry, Canali, Diesel, Dune, GAS, Giorgio Armani, , Kate Spade, M&S and Michael Kors |
| ABFRL | Ralph Lauren, Hackett London, Ted Baker, Fred Perry, Forever 21, American Eagle and Reebok |
| Arvind | Tommy Hilfiger, US Polo ASSN, Calvin Klein, GANT, Hanes, IZOD, Nautica, The Children’s Place, Hanes |
| Page Industries | Jockey, Speedo |
| Myntra | 25+ brands like Next, Ideology, Karen Scott, Boohoo, 8Seconds, DeFacto |
| ace turtle | Lee, Wrangler, T Dockers® |
There are a few interesting examples where an overseas company is collaborating with another overseas-based brand. UAE-based Apparel Group recently launched the Canadian lingerie and sleepwear brand La Vie En Rose in India and opened its first store in Noida.
The excitement of overseas brands regarding expansion into India indicates the upward-swinging economy of the country and vast opportunities for their brand. It is being announced by several brands that besides Canada and the US markets, India will become a key focus for them over the next decade.
Apart from consumers’ aspiration for the overseas brands, another important aspect that the foray of overseas brands serves is to address the existing gap in various categories. Like in intimatewear, Switzerland-based Triumph International entered in India in 2002 while Japan-based Wacoal which is known for using science, technology and innovation to provide the best and the most comfortable lingerie, entered India in 2015.
Acquiring diverse brands to balance the product portfolio and achieve diversified footfall
For retail giants, the takeover or merger of other brands/retailers is to complement their existing portfolio of exceptional brands across the entire spectrum of fashion. For example, having top menswear brands in its portfolio, ABRLF acquired TCNS as TCNS through its womenwear brands W, Aurelia, Wishful & Elleven, is catering to the Indian women’s fashion needs across markets and price points. And as ABFRL has proven brand-building capability, distribution strength and a strong ecosystem of partners, this partnership helps TCNS to fully realise this potential of long-term growth.
Similarly, Reliance and film star Alia Bhatt’s childrenswear brand Ed-a-Mamma’s ‘upcoming’ deal will give Reliance greater leverage in the kidswear market as it specialises in providing sustainable clothing options for children at affordable rates.
