Reliance Retail plans to foray into value apparel space
Reliance Retail intends to launch a value apparel format to compete directly with Tata's Zudio, Landmark Group's Max, and Shoppers Stop's new mass-market brand InTune. The company is in talks to lease 6,000-9,000 square feet of space across malls and high streets for the new brand, the name of which has yet to be revealed.
"While Tata has Westside and Zudio in the mass and low-priced segments, Reliance has Trends as well as the recently launched premium fashion and lifestyle store AZORTE, which will compete directly with fast fashion brands Zara and H&M in India. It had nothing to compete with Zudio and Max, and the new brand, which will sell clothing in the $1,000 range, will assist it in expanding its offering "officials with knowledge of the launch said.
According to experts, India's consumption structure has historically been skewed toward a small group of wealthy consumers who account for a sizable portion of the overall market.
However, as the economy expands into more cities and has a greater impact at lower income levels, the opportunity for value-formats and value-brands grows.
Reliance did not respond to the email query until after the press deadline on Tuesday.
"In the next few months, we will see multiple stores coming up in this segment as big brands want to tap this segment. After the consumption has increased in metro cities as well as tier-2 cities, retailers are eyeing growth in 2023," said a retail expert.
Reliance Retail opened 789 new stores, totalling an area of 6 million square feet in Q3 FY 23.
As consumers returned to stores, it also recorded the highest ever footfalls at 201 million across formats and geographies, a growth of 25.6% during the same period.