Mukesh Ambani’s shopping binge for designer clothing: Here’s why?
As part of its aggressive retail strategy, which involves forming alliances with national and international brands, Reliance Industries is now opening a new chain of stores.
On Thursday, the retail division of Mukesh Ambani’s billionaire enterprise, Reliance Industries Ltd, opened its first in-house premium apparel and accessories store in an effort to expand its share of the country’s luxury market. With its first location opening in Bengaluru, the new chain of stores known as Azorte will compete with Zara and Mango for the attention of millennial and Gen Z.
Quick knowledge:
- .Within the last two years, Reliance Retail, a subsidiary of RIL, has established two private labels in addition to investing in over seven others.
- In addition, it offers 50 luxury brands from abroad, including Armani, Steve Madden, and Jimmy Choo
“By acquiring well-known brands, Reliance is using its current staff and resources under Reliance Retail to gain a larger share of customers’ wallets,” according to Neha khanna, director at consulting firm ValPro, “their core competency isn’t focused on launching their individual labels but rather overseeing merchandising (offline and online) for firms that they associate with.” She added that there are minimal maintenance costs related to the ownership, which directly increases their revenue.
There are three main benefits to adopting such a tactic for any business:
- First off, modern customers are more adventurous, and this has a significant influence on how business tactics are developed.
- Second, this tactic is even more beneficial when operating an online store because it enables the brand to cater to the demands of a digital customer who is open to experimenting with new brands.
- Thirdly, a label that employs a “house of brands” technique is capable of scaling every one of these brands to a degree that they otherwise might not have accomplished while developing independently.
According to a review by Fortune India that cited sources, Reliance Industries has recently been on a buyout binge across various sectors of the retail industry in an effort to become a “Wal-Mart plus Amazon.” Throughout the years of pandemic, there was an increase in the general discussion of what prosperity in India means. AOA 2022 has been released as a book with commemorative artworks that charts the later pandemic business and the obviously modified consumer perception. Reliance Brands Limited (RBL), the biggest luxury retailer in the nation, added value to the report by contributing important consumer observations.
AOA 2022 at a glance: Key Takeaways
- 57% of men assert that they now spend more money on clothing. According to RBL data, the profile of men’s brands grew by 46% last year. 14% of it was for women.
- Compared to 26% who still view luxury as a way to make a social statement, 76% of consumers engage in high end brands that reflect their style preferences.
- When COVID-19 restrictions were in place, two out of three wealthy people made their first luxury online purchases.
- 26% of Gen Z naturally links luxury to tourism, while 21% connect it to clothing and accessories.
Quick Knowledge:
- Azorte is the first high-end in-house fashion brand owned by Reliance Retail.
- Isha Ambani, the head of Reliance Retail Ventures, has been instrumental in the company’s delving into luxury and fashion.
The business stated that it wants to enhance its grasp and relate with customers across India in disparate fields from skincare to gadgets. The store’s opening took place in a 75,000 square foot space. On various retail cart attributes, a new sale price has been initiated for customers. According to reports, RBL is also interested in acquiring the Indian franchise rights for Sephora, a retailer of apparel and cosmetics owned by LVMH.
