Aditya Birla: ABFRL will create a new entity for D2C entry

Aditya Birla Fashion and Retail Limited (ABFRL) said it would set up a dedicated company to enter the direct-to-consumer (D2C) sector, as part of its strategy to build a digital brand portfolio of the new era in all categories of fashion, beauty and lifestyle segments. D2C brands refer to businesses that derive most of their revenue or customer acquisition from direct-to-consumer online channels or those that started with online distribution before moving to omnichannel.

The company, which sells clothes and accessories from Louis Philippe, Van Heusen, Allen Solly and Peter England, among others, said it will incubate and acquire new brands. The new venture will initially be funded by ABFRL’s internal accruals, but will seek to bring in external capital to accelerate the growth journey when the time is right, it said in a statement.

“At ABFRL, we want to build the next set of iconic brands in the digital space as we evolve with our changing consumers. By leveraging our core capabilities in design, product creation, sourcing and brand building initiatives that have enabled us to build some of India’s most beloved fashion brands in the offline space, we now aim to build a successful portfolio in the digital space as well,” Ashish said. , Managing Director, ABFRL which manages more than 3400 stores.

Last quarter, it announced it would acquire Reebok’s Indian operations to enter the activewear and sportswear segment and a 51% stake in House of Masaba to enter the beauty and personal care space.

Nearly 590 new D2C companies entered the Indian market in the past three years, and they raised Rs 6,700 crore in total, according to Tracxn, a private enterprise data market intelligence provider. The D2C market opportunity in India is expected to reach $100 billion by 2025, ABFRL said.


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