Category: GARMENTS
Country: India
Region: South Asia
By exiting Replay and G-Star RAW, Reliance Brands appears to be realigning its focus on more profitable ventures within its portfolio.
By Anirudha Yerunkar
16th December, 2024 8:27 AM IST
Mukesh Ambani led Reliance Brands, a subsidiary of Reliance Industries, is exiting its partnerships with Italian denim brand Replay and Dutch fashion label G-Star RAW, due to sluggish demand for discretionary products. This move marks a strategic shift in the company’s extensive apparel portfolio, which includes brands like Gas, Diesel, Armani, and Superdry.
The Netherlands-based G-Star RAW entered the Indian market a decade ago through Genesis Luxury and came under Reliance’s umbrella when it acquired Genesis in 2017. Similarly, Replay, owned by Italy’s Fashion Box, partnered with Reliance Brands in 2018 to expand its footprint in India. However, with diminishing demand for these brands, Reliance has begun closing their retail outlets, replacing them with other international labels in its portfolio, according to an Economic Times report.
Why Reliance Ended Partnership?
Most G-Star RAW stores have already shut down, though the brand continues to be available on online marketplaces, claimed the same report. Replay stores will also be phased out soon as Reliance finds the brand less relevant to Indian consumers. There is speculation that G-Star RAW may seek a new partner to distribute its products in India.
Indian Market & Global Brands
India, as the world’s most populous country, has become a lucrative market for global apparel brands, driven by a youthful population increasingly adopting western-style clothing. However, competition has intensified with the entry of major players such as Zara, H&M, Uniqlo, and Gap, crowding the market.
Although global fast-fashion and premium brands saw impressive sales growth of 40%-60% after the pandemic, the trend has reversed over the past 6–8 quarters. Factors such as high inflation, rising interest rates, job losses in sectors like startups and IT, and overall economic slowdown has reduced consumer spending on non-essential items like apparel, lifestyle products, electronics, and dining out.
Courtesy: india.com
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