 "Reliance shuts G-Star RAW and Replay fashion stores amid sluggish demand")
Reliance Brands, a subsidiary of Reliance Industries, is exiting its partnership with the Italian denim brand Replay and the Dutch clothing brand G-Star Raw, citing falling demand for discretionary products in the Indian retail market, including these brands, according to a report by The Economic Times.
Company executives privy to the development said that most of the G-Star stores have been shut but have a presence through the online marketplace. Reliance will soon shut Replay stores as they feel these two brands are losing relevance in the Indian market. G-Star might look at partnering with another retailer to distribute their brand in India, they mentioned.
G-Star RAW, a Netherlands-based fashion brand, made its entry into the Indian market approximately ten years ago through a partnership with Genesis Luxury. The brand came under Reliance's portfolio following the acquisition of Genesis in 2017. Likewise, Replay, an Italian brand under Fashion Box, joined hands with Reliance Brands in 2018 to grow its presence in India.
Why did Reliance end the partnership?
According to news reports, most G-Star RAW stores in India have already closed down, while the brand is still available through online platforms. The stores of Replay are also scheduled to close soon, since Reliance believes that G-Star RAW has little demand among Indian consumers. G-Star RAW may consider an alternative distribution channel for its Indian market.
India offers an attractive opportunity for global fashion brands. However, the market has become highly competitive with leading international players such as Zara, H&M, Uniqlo, and Gap entering the fray.
Reliance Brand’s challenging financial year
Reliance Brands Ltd, which manages over 50 international fashion brands in its portfolio, has encountered significant challenges. Though Reliance Brands’ revenues witnessed a 13 per cent year-on-year growth in FY24 to Rs 2,303 crore, its losses ballooned by 55 per cent, increasing to Rs 288.4 crore compared to Rs 185.16 crore the previous year, according to the company’s annual report released on August 2024. Some of the brands managed by Reliance Brands did not show revenue growth translated into profits, such as Diesel Fashion India and Paul & Shark.
Founded in 2007, Reliance Brands Ltd has developed a diversified portfolio of brand partnerships, such as Dune, Hamleys, Pottery Barn, Tory Burch, and West Elm. The company operates through the entire range of luxury and affordable fashion, with a majority stake in about 50 international brands. Moreover, RBL partners with India’s leading designers, including Rahul Mishra, Manish Malhotra, Anamika Khanna, Abraham & Thakore, Abu Jani Sandeep Khosla, and Ritu Kumar, among others.