2021, the year that was: Indian couture catches corporate eye

For two years, the Indian luxury fashion industry has been on a rollercoaster ride — much like everything else, amidst disruptions and labour shortages. A big part of buying couture is the touch-and-feel and having one-on-ones with the designer, which was largely ruled out during the pandemic.

Indian corporate houses, however, injected new life into the luxury fashion industry. The year was peppered with a slew of corporate acquisitions in labels by leading Indian fashion designers. The first such acquisition was announced in January, with Aditya Birla Fashion and Retail (ABFRL) buying a 51 per cent stake in Sabyasachi, owned by designer Sabyasachi Mukherjee. And in February, it acquired a 33 per cent stake in Tarun Tahiliani’s label.

“I wanted to go to the next level, which required a different kind of thought process and approach,” says Tahiliani, who also joined hands with ABFRL to launch Tasva, a premium ethnic menswear label, in which he holds a 20 per cent stake. “Given that I have spent 25 years in understanding design, our heritage, our craft and in teaching myself, I didn’t have another 25 years to spare to understand the other part of the business, and I thought that ABFRL was a superbly matched partner for us to achieve this goal.” With Tasva, ABFRL plans to build a Rs 500-crore business with more than 250 stores across the country in the next five years.

“The pandemic has forced us to grow up and take very seriously the responsibility for the business and the people who work for us, such as the weavers, the craftsmen and others,” he adds.

ABFRL’s rival, Reliance Retail Ventures was not far behind and by the time October came around, RRVL was on a shopping spree.

In mid-October, Reliance Brands announced that it had picked up a 40 per cent stake in the 16-year-old Manish Malhotra luxury label. The designer, who has for decades been Bollywood’s go-to stylist, had been looking to expand the horizons of his label and fashion.  “I wanted to make my brand truly global, diversified, and chart a new growth dimension for Indian luxury,” says Malhotra, who has four flagship stores across the country. “A collaboration was necessary for that. I was getting several offers from all over, but with Reliance I felt complete faith and alignment.”

Soon, RRVL announced that it had acquired a majority stake in Ritu Kumar’s Ritika Pvt Ltd, which owns Label Ritu Kumar, RI Ritu Kumar, aarké and Ritu Kumar Home & Living. Kumar, known to have introduced boutique culture to India, began her career in Kolkata with her hand-block printing techniques. Her designs continue to feature traditional printing and weaving techniques.

“RRVL and Ritu Kumar have a shared vision, which is to highlight immense design capabilities and provide our artisans and craftspeople with a rewarding platform,” says Amrish Kumar, managing and creative director, Ritu Kumar.

With a 52 per cent stake, Amrish Kumar adds, “RRVL will fast-track our effort to drive growth. The partnership will continue to build the existing business by restructuring the ease of end-to-end production and manufacture. We intend to achieve this through skill enhancement and technological enablement of artisans and craftsmanship.”

The Indian corporate sector is finally seeing promise and potential in homegrown luxury labels and focusing on taking them to new heights.

“To my mind, I think the designer is getting long overdue value,” says Sunil Sethi, chairman, Fashion Design Council of India. “Indian designers have given their blood, sweat and tears to come to a stature where corporate entities are looking at them. They have probably realised they can add value to the designers and that, to me, is the silver lining.”

Darshan Mehta, MD, Reliance Brands, echoed this sentiment on December 20 when he announced a partnership with designer Anamika Khanna for a 60:40 joint venture to develop the brand AK-OK. “Our role… is to uncoil the creative energy of Anamika, Viraj, Vishesh and the ideation team to its fullest potential. And beyond,” he said.

In a rapidly changing world stricken by the pandemic, the rise of social media, a growing e-commerce market and the ever-expanding digital universe has presented immense possibilities for luxury fashion labels.

The Business of Fashion and McKinsey & Company State of Fashion 2022 report says, “Digital environments have become a prime channel for fashion brands looking to tap into lucrative younger cohorts of customers.” It says the global fashion industry is set for recovery in 2022, with fashion sales surpassing 2019 levels by 3-8 per cent.

Besides collaborating with corporate entities, fashion houses are also starting to recognise their growing responsibility towards the environment. “At present, less than 10 per cent of the global textile market is composed of recycled materials, according to Textile Exchange; it will require industry-wide investment to scale closed-loop recycling technologies and processes that could enable businesses to reduce their impact on the environment,” adds the report.

New stores, international exposure and additional funding are just some benefits of corporate interest in Indian couture. “This move has added great value to my life because I’m engaging with a whole different set of seasoned professionals, who are deep thinkers and work in an organised, structured and ethical manner,” says Tahiliani about his partnership with ABFRL. “Having always worked on my own from the time I graduated from school, I’m finding the stimulation invaluable, and it’s made me change the way I look at the entire business. To me that’s value enough; the financials will follow.”

Capital and logistical support from corporations will only further embolden Indian fashion labels to traverse this changed world with more confidence. As Sethi says: “I see the glass more than half full.”