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Friday, 25 February 2011 |
Restructuring of its verticals is in the air at
Reliance Brands, a subsidiary of Mukesh Ambani led Reliance Retail which is structuring its business under three verticals. Reliance Brands will continue introducing international lifestyle brands in India whilst simultaneously developing new retail concepts and enter into strategic tie-ups with domestic lifestyle brands or designers in footwear, apparel and accessories.
Reliance Brands has associations with six international lifestyle brands -- Diesel, Timberland, Zegna, Paul & Shark, Quiksilver and Roxy. The company has formed joint ventures with Diesel, Zenga and Paul & Shark, while it has a license and distribution agreement with Timberland, and licensing agreements with Quiksilver and Roxy. It will open 55 exclusive brand outlets for these by the end of this year in the top nine cities. Of this, Timberland will have 15 stores and Diesel, 14. By 2012-13, the company will take these brands to smaller cities. Reliance Brands is also in talks with a few more international brands, especially in the women’s wear and accessories space. Darshan Mehta, President and CEO, Reliance Brands, feels since there are not many exclusively women’s brands in India so there is a big market for such brands as the number of women shoppers is huge today.
In its second vertical, going in with Indian brands makes a lot of sense as these brands have enormous equity potential and are at par in international quality delivery. Mehta feels homegrown brands, which have a potential to grow, will be identified. They will provide equity, but will remain a minority stakeholder. These brands could leverage Reliance’s expertise in supply chain management, marketing as well as real estate for growth. The company has drawn up a list of potential brands.
The third vertical is about developing new retail concepts. At present, they have MBOs, departmental stores and EBOs. Now they are thinking of newer concepts that can work in retail. This could be a different way of selling fashion and lifestyle products. |
