How would you feel going to a store near looking out to by the latest designs from Reliance? Yes, this is true. Soon you might just find Reliance selling you luxury amenities at exclusive stores near you.
Reliance Brands, a subsidiary of Mukesh Ambani-led Reliance Retail, is scouting for acquisition in the domestic market, besides launching its own luxury label in the next 18 months. The company, which at present predominantly focuses on mens range, plans to focus on women and kids wear categories.
Reliance Brands President and CEO Darshan Mehta explained to the media that Reliance Retail has become serious about launching its own brand and has already started work on that and dedicating resources on the same. If everything goes as planned, in the next 18 months it should get going.
The company is also in discussions with a few existing Indian companies operating in apparel, footwear and accessories space for an acquisition. The due diligence is for the acquisition, Mehta said without specifying details. When asked what would be the focus of the company in case of an acquisition or launch of an own label, Mehta said women and children are the two categories, which could be looked at.
Launched in 2007, Reliance Brands has joint ventures with Diesel, Zegna and Timberland. It is also a licensee for Italys fashion brand Paul & Shark. The company opened the first outlet for Diesel in March this year and plans to gradually expand the reach of existing brands in its kitty.
We are not in a hurry to scale up the operations. The company is still in investment mode and the focus is to partner with strong brands, Mehta said. In the next two years we are likely to announce tie-ups with two more international brands, he added without mentioning the names.
On the expansion of the existing labels, Reliance Brands plans to have three more Diesel stores, 10 outlets for Timberland, five outlets for Zegna and four stores for Paul & Shark. Mehta, however, did not reveal the investment planned for the expansion of these brands in the country.
Hence it is pretty clear from the way that reliance has been moving ahead with acquisitions in other sectors that the message here is pretty clear. The women and children categories are always in demand and hence the wily brain of Reliance Retail is going to no doubt target this audience. The only question remaining is that how will reliance manage to keep its buyers interested in the clothesline. Would people like to wear Reliance? Only time will tell.
Reliance Retail, a subsidiary of Mukesh Ambani owned energy and petrochemicals major Reliance Industries Limited (RIL) is planning to launch a luxury brand in the next 18 months.