Following its ascent to the position of the nation’s leading apparel retailer, Reliance Retail is expanding the reach of clothing and fashion products to external retail outlets. This involves establishing an exclusive lineup of branded products tailored for this business-to-business initiative.
The company has introduced over 50 exclusive brands, and this figure is set to triple in the near future as part of its recent strategy to broaden its presence in the fashion business. According to two well-informed senior industry executives, this expansion beyond its own stores is driven by the significant growth opportunities it presents.
Among the brands introduced thus far are Silkfeet and Jivers in the footwear category, Xlerate specializing in footwear and athleisure, Feet Up focusing on women’s footwear, Dhuni by Avaasa featuring Indian wear, Riva specializing in womenswear, John Player Select offering menswear, Kidlyboo catering to kidswear, and Altair specializing in t-shirts.
Reliance Retail plans to distribute these brands across all markets, including rural areas, through third-party stores within its apparel distribution network. Currently, the company is conducting a pilot program under the Ajio Business banner, and according to one of the executives, this initiative will be expanded on a larger scale by the upcoming spring-summer season.
“Reliance will launch its own apparel and fashion brands across categories such as western wear, Indian wear, inner wear, lingerie, costume jewellery, footwear, fashion accessories in the value and mid-premium range to be sold through lakhs of third-party retailers. Organising the unorganised will be the next thrust area,” the executive said.
According to another executive, the business-to-business (B2B) segment in apparel is expected to surpass Reliance Retail’s own apparel retail stores as a major revenue contributor within the next five years. He highlighted that 80% of the apparel retail market in India is unorganized, presenting a substantial opportunity for growth beyond reliance on proprietary stores.
“The textile industry is a large employment generator and Reliance would want to nurture it by ensuring small apparel retailers can offer an assortment. Reliance will create a backend for them so that they can also do sales by showing catalogues,” he said.
As of the press time, an email sent to Reliance Retail seeking comments has not received a response.
Reliance is extending its distribution to encompass additional well-known apparel and fashion brands through Ajio Business. This lineup includes Campus, Khadim’s, Liberty, Biba, Globaldesi, Lotto, and Adidas.
As the largest apparel retailer in the country, Reliance Retail operates more than 4,000 stores across various brands. The Trends brand, boasting over 2,600 stores, stands as the largest fashion retail chain under its umbrella. Additionally, Reliance Retail has introduced new formats, including Azorte, focusing on high street fashion, Yousta catering to youth-centric fashion, and Centro departmental stores.
“The company will expand the newer formats by 50% annually for next few years, while Trends stores will be expanded by 10-15%. While the overall apparel market is growing at 11%, organised retail is growing at 18-20%,” the second executive said.
Reliance, holding the position as the nation’s foremost retailer, is also the frontrunner in consumer electronics, mobile phone retailing, and grocery sectors.