Since its inception, Reliance Brands has taken a huge leap in the branding arena with the innumerable collaborations and joint ventures that it has embarked upon. Right from its association with Iconix, New York Based Fashion to Quicksilver, sportswear retailer and bringingBritish fashion brand Superdry to India, it has pegged on being the largest multi- brand store in the country. It has already ensured that its display comprises of all the top-notch international brands by inking a number of joint ventures with varied international brands.
While we may be awestruck by its pace of growth, Darshan Mehta, CEO of Reliance Brand, a subsidiary of RIL, states “We are not in a hurry.” In a way, the amount of money infused and the expansion mode that they have adapted manifests the fact they are not in a hurry to make profits but have been laying the groundwork for a healthy business.
The varied range of products thatReliance Brand offers has been its USP, enabling it to tick with consumers of different background. Speaking about segmentation in the luxury market,DarshanMehta drives us to the car segmentation market in order to explain his point. He mentions that the 25 lakh to 50-lakh price bracket encompasses of BMW 5 series and Mercedes E Class while the Rs 50 lakh-1 croremarket comprises of Porsche 911 and Audi Q7. The market for above 1crore would entail Aston Martin D89 and Ferrari Fiorano. Similarly, Reliance Brands’s luxury market adheres to 3 levels of positioning where brands like ErmenegildoZegna and Paul & Shark will fall in the average price range of Rs.15,000 and above and the second market catering to affordable luxury with the median price range of Rs.8000 to Rs.10,000 would accommodate Diesel Jeans or Thomas Pink shirt. The third segment, high-end brands entails to Quicksilver and Timberland to name a few. He states that a consumer with a budget of Rs.1 lakh will opt for Gucci over TarunTahilani considering the love for international brands among Indians. Here, Reliance Brands will score with its huge possession of an array of international brands Diesel, Paul & Shark, Steve Madden, and Timberland, according to the 51-year-old CEO who has his office in Cuffe Parade that gives him a window-view of the Arabian Sea.
The CII- AT Kearney Report by KotakWeath and CRISIL research have supported the same pointing out the fact that the Indian luxury market will account for a market of over Rs.30 ,000 crore and will further bolster to Rs.80,000 crore, by 2015. MukeshAmbaniowned Reliance Brands will have a head start over its competitors (though not many in this segment) enabling it to tap the booming luxury market in India.