By: Pradeep Pandey


The fashionista dream is alive and kicking. But it's nolonger strictly elitist! With the US and Europe still grappling with recession,global luxury apparel retailers are eyeing markets like India, which has putitself firmly on the path of recovery.


Reworking their business model byfocusing on affordable luxury, international majors are in talks with Indianplayers to target aspirational but value-conscious consumers.


While retail chain major Shoppers Stop is all set to launchPlayboy brand of unisex wear, textile conglomerate S Kumars group is bringing in three international brands by the end of this fiscal.


Several high-priced international apparel brands wereearlier forced to close shop due to sluggish demand. Few other brands likeJimmy Choo and Bottega Veneta changed hands from the Murjanis to Genesis Colorsand Springfield in order to sustain growth.


Now, global brands are relying on Indian retailer'sunderstanding of the local market while Indian retailers are reworking the pricein accordance with preference of the consumers.


"Indian retailers, tying up with international brands, aregiving them an insight of the Indian market and taking the responsibility of marketing on franchisee basis, which is being preferred bythe overseas brands", says Rahul Mehta, president of Clothing ManufacturersAssociation.


Shoppers Stop, which had launched foreign brands like MAC,Mothercare and Austin Reed among dozen of global brands, and now plans to addabout half-a-dozen international labels soon.


"We have recently introduced European jeanswear brandMustang and will be launching Playboy apparel (Avinix Fashion)and luxury cosmetic brand Guerlain (Baccarrose)," says Govind Shrikhande, chiefexecutive officer of Shoppers Stop. India is seen as a key growth market and isgetting positive response from several international brands, added MrShrikhande.


S Kumars group, which tied up with Italian brand Oviesse this year, is in talkswith other international brands. Nitin Kasliwal, managing director of S KumarsNationwide (SKNL), said, "We are in advanced stage of talks with internationalapparel brands keen to tap the Indian market soon. Some of these brands aretop-end luxury brands." Brandhouse Retails, apparel retail arm of SKNL, willlook after the retail expansion and marketing of these brands in the country.


Arvind Brands, which has a licence to market premium segmentmen's wear brands such as Arrow and Gant, has launched 'Izod' in India, a label of global apparel firm Van Heusen. In line with others, Murjani Group thatbrought brands like Calvin Klein, Tommy Hilfiger,Gloria Vanderbilt and French connection funky wears for youngsters FCUK, hasalso launched an on-line sales service for the brand.


Industry analysts contend that earlier the global luxurybrands, which came in India, were highly priced for the Indian consumers. Now,in order to sustain in the market, most of them have started discount selling.The big brands Mega Carnival in Mumbai recently offered almost 80% on international brands like Roberto Cavalli, Givenchy, Davidoff, Chopard and Calvin Klein, to name a few.


"Market for luxury brands is yet to develop in a countrylike India, where demand is rising with consumer's purchasing power," saidTarun Joshi, managing director Brandhouse.


According to industry analysts, the market for luxury andpremium brands in India is estimated at about Rs.6,000 crore- Rs.7,000 croreand growing at about 25-30%. However, luxury is still in its nascent stages asonly 8-10% of the Indian population in metros is exposed to such brands.Overall, organised apparel retail contributed more than 35 % of the entireorganised retail market aggregating over $ 60 billion.



Originallypublished in "The Economic Times" Mumbai dated November 23, 2009