Feedback
A pioneer B2B media and publication platform connecting with Fashion Brands & Retail in India

Future Lifestyle Fashions to buy 30 per cent stake in Koovs

Future Lifestyle Fashions to buy 30 per cent stake in Koovs 002Future Group’s unit Future Lifestyle Fashions will buy a 29.9 per cent stake in one of the oldest online fashion and lifestyle brand retail --- Koovs for about Rs 140 crore. Both companies being public entities, the deal is subject to regulatory and internal approvals. Subject to conditions, Koovs will issue Future Lifestyle 57,876,600 new ordinary shares at 10 pence per share, representing 24.8 per cent of the enlarged issued share capital, raising £5,787,660 of cash, according to a statement of Koovs’ website. Before Biyani, other famous Koovs investors include British businessman-turned-politician Lord Waheed Alli, a former chairman of Asos.com and Alli also founded Koovs in 2012. “Lord Alli has committed to invest £1.5 million in the equity raise and FLFL (Future Lifestyle) has conditionally agreed to make additional investments to take its ownership up to 29.9 per cent within six months of completion of the equity raise,” said a Koovs statement.

Cashing in on online boom

Future Group’s Kishore Biyani, over the past 10 months, had been emphasising on digital channels andFuture Lifestyle Fashions to buy 30 per cent stake in Koovs 001 announcing new tech-driven strategy – Retail 3.0 - a fusion of retail and technology. Koovs is an online store that sells its own labels and inventories of a few popular brands. A major chunk of its revenue comes from the in-house brand. Future Group sees a sizeable potential to sell Koovs’ product line through the network of its brick & mortar stores. Unlike acquisition of Fabfurnish (Rocket Internet’s home furnishing unit) that later proved to be another failure, investment in Koovs fits well for the Future Group.

Koovs curates fashion from various international brands targeted at 18-34 years old Indian youth and about 40 per cent of the company’s sales come from its private labels. The company at present rakes in revenue of about Rs 200 crore. This is Biyani’s latest go at e-commerce two years after a failed acquisition of online furniture seller FabFurnish.com from Germany-based Rocket Internet. Future Group last year folded FabFurnish after it was not able to leverage FabFurnish for its planned offline-and-online retail plans with Home Town furniture and home products chain.

Meanwhile, Future Group is getting ready for its new digital format to be called Tathastu which will be launched on November 21, 2018. It will facilitate everything at the consumer’s doorstep. Biyani says e-commerce companies hardly contribute less than 0.2 per cent of total retail sales and will never be able to turn profitable. After establishing themselves in metros, these companies are planning to foray into the rural areas. However, Future Group does not intend to follow suit as the consumer spend in these areas is very low.

The Future Group is also planning to partner with technology companies to foster Tathastu. In future, it will also leverage technology to bring in personalisation for the customer. Meanwhile, for strengthening its offline part, Flipkart has been negotiating an 8-10 per cent stake in Future Lifestyle Fashions Ltd (FLF), the listed fashion arm of the Future Group. Flipkart’s arch-rival Amazon had picked up a 5 per cent stake in Shoppers Stop in September this year.

Future Lifestyle has a portfolio of more than two-dozen global and local brands including Lee Copper, Indigo Nation, Scullers, Clarks, John Miller, Jealoys, CoverStory, aLL among others and also owns Brand Factory chain and Central, a large department store chain.

 

LATEST TOP NEWS
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10

Traditional retailers adopting tech to enhance in-store experience

Traditional retailers adopting tech to enhance in-store experience

The growing expanse of e-commerce is pushing traditional retailers to opt for innovative technologies to craft out experiences that stretch beyond a mere purchase. From 3D, VR, lawns, basketball courts,... Read more

HGH India 2018 ended on a promising note with good business deals

HGH India 2018 ended on a promising note with good business deals

The 7th HGH India trade show for home textiles, home décor, houseware, and gifts gathered an overwhelming response from trade visitors and industry. Close to 34,960 trade visitors, primarily retailers,... Read more

Pepe Jeans makes a mark with jeans customisation

Pepe Jeans makes a mark with jeans customisation

First to introduce the denim customisation service in India in October 2015, the Pepe Jeans Custom Studio service enables customers to customise their denim in a few easy steps. Widely... Read more

Changing buying habits of New Age men influence brand’s marketing initiatives

Changing buying habits of New Age men influence brand’s marketing initiatives

It was in 1992, that Raymond Apparel released its iconic ad campaign – The Complete Man which brought men’s fashion out of its closet. The campaign portrayed the emergence of... Read more

TT Ltd plans to expand in Central and Western India

TT Ltd plans to expand in Central and Western India

Focusing more on casual wear range such as bottoms and T-shirts, TT Ltd continuously upgrades its products to cater to the growing demands of its consumers. “We use mélange, off... Read more

National Garment Fair, India’s biggest garment fair is on in Mumbai till July 19

National Garment Fair, India’s biggest garment fair is on in Mumbai till July 19

The National Garment Fair organized by the Clothing Manufacturers Association of India (CMAI) was inaugurated by chief guest Kishore Biyani, Group CEO – Future Group at Bombay Exhibition Centre, NSE... Read more

Cool Colors expects 40 per cent growth in business this festive season

Cool Colors expects 40 per cent growth in business this festive season

Cool Colors’ new collection of blazers and T-shirts under ‘The Global Traveller Campaign’ includes prints and patterns along with a range of classic designs like prints, checks and plains. The... Read more

Dollar Missy aims at inorganic growth through M&A

Dollar Missy aims at inorganic growth through M&A

"Women’s brand Missy offers capris, kurtas, pants and leggings in trendy designs and textures that gives it a completely new look. “We have raised our bar from routine black and... Read more

Arrow unveils revamped store at High Street Phoenix

Arrow unveils revamped store at High Street Phoenix

Arvind Fashions subsidiary of Arvind Ltd, India’s largest integrated textile player recently launched stores of marquee retailers Gap and The Children’s Place. Arvind is one of the largest producers of... Read more

Ashapura Intimates on a strong footing for positive growth ahead

Ashapura Intimates on a strong footing for positive growth ahead

Ashapura Intimates Fashion (AIFL) sales increased 84 per cent to Rs 141 crore while operating profit jumped 73 per cent year-on-year in Q4 2018. Consolidated topline recorded Rs 344 crore,... Read more

MOST POPULAR NEWS
Go to top