DS Group's luxury aims to invest up to Rs 200 crore for portfolio expansion
DS Luxury, a subsidiary under DS Group, aims to invest up to Rs 200 crore in the upcoming years to introduce additional luxury brands into the Indian market. Presently, the company operates high-end menswear labels like Berluti, Tom Ford, Brioni, and Brunello Cucinelli within luxury malls across the capital. Ritesh Kumar, the company's promoter, highlighted that India's luxury market is entering a crucial phase and is anticipated to witness significant growth in the coming decade. Kumar mentioned that the allocated investment will be utilized to bring new brands into the country, with a specific emphasis on women's luxury apparel brands, some of which are currently under negotiation. Recently, the former tobacco company, now transformed into an FMCG entity, unveiled its inaugural Brioni store in India located at The Chanakya in Delhi.
"The global luxury market previously viewed India as a relatively small market with just a few stores. However, there's a significant shift underway. Luxury brands need to recognize that the Indian market has evolved and holds substantial potential, especially if they adapt to local nuances. This involves being adaptable to include more high street stores, developing products appreciated by locals, and customizing marketing strategies", he explained. DS Group predominantly operates in FMCG and tobacco sectors but also boasts a sizable retail division with a growing presence in hospitality.
While DS Group has predominantly concentrated on luxury menswear brands, the upcoming endeavors will prioritize women's luxury clothing and explore alternative luxury retail formats, potentially including multi-brand outlets. The company introduced Tom Ford to India in 2010. In 2021, it had an opportunity to acquire the business of an existing luxury player looking to divest brands like Berluti and Brunello Cucinelli, both of which have proven to be successful ventures for the group.
Luxury companies typically enter the Indian market through master franchise agreements or joint ventures with local partners. "Post-Covid, the business experienced a decline. However, the luxury and premium segments are expected to witness substantial growth in the next 5-10 years. Numerous brands are now keen on entering the Indian market more than ever before. The existing luxury offerings in malls have limitations in terms of trade volume. There's potential to explore alternative formats such as multi-brand luxury outlets", he remarked.