23 January 2024, Mumbai

In a series of articles, DFU looks at how, over the years, India’s Large Format Retailers (LFR) have performed and are strategizing future success with new challenges and New Age consumers.

From Value King to Omnichannel Champion: Reliance Trends redefines its appeal

Forget the image of overflowing bargain bins and a discount-driven frenzy. Reliance Trends, the ubiquitous apparel giant within the Reliance Retail behemoth, is shedding its "value king" crown and weaving a new narrative—one where trend-conscious threads, seamless omnichannel experiences, and strategic expansion hold the needle.

While affordability remains a cornerstone, Trends is no longer just a destination for budget-conscious shoppers. It's redefining its appeal, catering to diverse segments, embracing digital integration, and venturing beyond metros to become a one-stop shopping champion for the evolving Indian consumer.

Here is a look at this transformation and how Trends is stitching together a future that promises convenience, variety, and value for the modern Indian shopper.

Riding on a reshaping market

The Indian apparel market is projected to reach a staggering $190 billion by 2025, and Reliance Trends is weaving itself into its very fabric. But the landscape is shifting.

Online and offline experiences are morphing into one, demanding seamless omnichannel journeys. Shoppers crave more than just clothes; they seek homewares, beauty, and more under one roof.

And beyond the familiar metros, Tier II and III cities are buzzing with rising disposable incomes, attracting retail expansion. This dynamic defines the market Trends is navigating, one where value remains king but convenience, variety, and a strategic eye beyond brick-and-mortar reign supreme.

Strategies for success

Reliance Trends isn't just a value king anymore. They're spreading out across India with over 1,400 stores with brands like Trends, Centro, and JioFashion, catering to every wallet and whim. From trendy threads in "HyperModa" to premium picks, they're stitching affordability into every segment. They're also playing tech maestro, wielding JioMart for seamless online integration, click-and-collect options, and in-store kiosks that blur the lines between physical and digital.

But Trends isn't just about clothes anymore. They're sniffing out the demand for holistic experiences, adding homewares and kidswear in select stores to become the one-stop shop for families. What’s more, Trends is venturing into Tier II & III cities, with over 1,400 outlets and tapping into the rising disposable incomes in these untapped markets.

This isn't just a retail evolution; it's a redefinition of convenience, variety, and value for the modern Indian shopper.

Financial Performance

(Source: Company annual reports, industry research)

Challenges and Opportunities

Trends' future isn't just stitched together; it's locally sourced! Think fresher fashion and lower costs, potentially giving FabIndia's sustainability focus a run for its money.

And just like Lifestyle, they are recommending trends you didn't know you needed riding on data. For JioMart, online sales are about to skyrocket with tighter integration into this retail behemoth. Trends is also going hyperlocal in Tier II & III cities, experimenting with smaller stores tailored to local tastes and needs.

Remember the "Big Diwali Bonanza"? That's Trends' value DNA on full display, attracting budget-conscious shoppers in droves. It's not just a sale, it's a glimpse into the future – one where Trends thread convenience, variety, and value into every corner of the Indian retail landscape.

Reliance Trends faces competition from online giants like Myntra and Ajio, as well as brick-and-mortar players like Max and Lifestyle. However, its extensive network, diverse brand portfolio, focus on value, and omnichannel integration offer promising opportunities for future growth.

The Bottom Line

Reliance Trends is weaving a multi-threaded narrative, moving beyond its value-focused image. By catering to diverse segments, embracing omnichannel experiences, and expanding into smaller cities, the brand is aiming to become a one-stop shopping destination for the value-conscious Indian consumer.

Whether it can claim the top spot in the increasingly competitive Indian apparel retail landscape remains to be seen, but its dynamic strategy and focus on adapting to evolving preferences are worth watching.

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Forget the sculpted bodies and sleek leggings, Lululemon is shedding its athleisure skin and embracing the vibrant tapestry of Indian wellness. More than just a market expansion; the brand’s move is a pilgrimage to a nation's soul, a quest to become a beacon of well-being, not just a brand.

Going beyond laser-focused activewear, Lululemon's stores now pulsate with the gentle hum of meditation chants and the scent of locally sourced incense, transformed into havens of "Mindful Movement." Walls adorned with vibrant Warli paintings showcase apparel that transcends mere sportswear. Each garment whispers tales of comfort and sustainability: sari-inspired leggings embrace Indian heritage, while kurtas crafted from recycled fabrics champion eco-consciousness.

Going deeper than just the physical, Lululemon is weaving itself into the very fabric of Indian wellness, collaborating with revered Ayurveda masters. In its hushed studios, wizened vaidyas guide participants through the secrets of Marma therapy, their fingertips tracing energy points on bodies clad in specially designed "Marma Focus" apparel.

Online forums buzz with the collective energy of shared wellness goals, fostering a sense of community that transcends borders and demographics. Imagine a housewife from Jaipur swapping turmeric recipes with a Silicon Valley CEO, both united in their pursuit of holistic well-being under the banner of Lululemon's "Connect & Thrive" initiative.

More than a market expansion, Lululemon's Indian odyssey is a cultural exchange, a bridge built on the shared language of well-being. It's a story of mindful hearts, ancient wisdom meeting modern innovation, and of a global brand finding its soul in the vibrant tapestry of India.

Driven by strong sales across all major segments, Reliance Retail, the retail arm of Reliance Industries, delivered a stellar performance in the festive quarter ending December 2023. The company’s net profit soared 32 per cent to Rs 3,165 crore, propelled by a 24 per cent rise in revenue from operations to Rs 74,373 crore. This impressive growth was further amplified by crossing the Rs 80,000 crore mark in gross revenue for the first time, reaching Rs. 83,063 crore.

Festive cheer resonated across the company's diverse portfolio. Encompassing brands like Fresh Signature and JioMart, the grocery basket witnessed a remarkable 41 per cent Y-o-Y growth. The fashion and Lifestyle segments, including Ajio and other formats, also posted a healthy 28 per cent growth. Even the consumer electronics segment, with Reliance Digital and MyJio Store, saw a 19 per cent jump in profit, thanks to new launches and flagship models.

This robust performance was further bolstered by the company's strategic initiatives. Reliance Retail added 252 new stores to its network, expanding its reach to 18,774 stores across India. Its digital commerce and new commerce initiatives continued to gain traction, contributing 19 per cent of the total revenue. Customer engagement reached new heights, with Reliance Retail recording 320 million transactions and a 24.7 per cent increase in its registered customer base to 293 million.

Highlighting the company’s rapidly expanding physical and digital footprint Mukesh Ambani, Chairman and Managing Director, Reliance Industries, lauded the retail segment's impressive performance,. He emphasized on the company's commitment to enrich customer experience through new brands and offerings. He also acknowledged the societal value generated by its New Commerce initiatives, which support small merchants through technology.

Mumbai-based beauty giant Nykaa has made its debut in Aurangabad by bringing its diverse range of beauty products and expert advice to a new audience. Located at Nirala Bazar, the new store boasts of an extensive selection of popular brands like Huda Beauty, Maybelline New York, The Ordinary, Nykaa Cosmetics, Kay Beauty, etc.

This expansion comes on the heels of Nykaa's strong financial performance, with a 50 per cent increase in consolidated net profit to Rs 7.8 crore in Q2 FY23. The company operates over 180 stores across formats like Nykaa Luxe, Nykaa On Trend, and Nykaa Kiosks.

With its debut in Aurangabad, Nykaa continues to tap into the growing demand for beauty products in India, particularly outside major metropolitan centers. The store's arrival is sure to be met with enthusiasm by beauty enthusiasts in the city, offering them convenient access to a curated selection of top brands and expert guidance

Footwear giant Liberty has expanded its footprint in north India with a brand new store at Lulu Mall Lucknow. This stylish addition promises to be a one-stop shop for shoe enthusiasts of all ages and preferences.
The store caters to every step of life, from tiny beginnings to confident strides, making it the perfect destination for families looking for quality footwear.
Stepping inside, customers are greeted by dedicated sections for each of Liberty's popular brands. Ladies seeking chic yet comfortable options can explore Senorita, while Healers offers a haven for those prioritizing ultimate comfort. Leap, Coolers, and Lucy & Luke complete the brand lineup, ensuring there's something for everyone.
The back wall of the store is a treasure trove of stylish accessories, featuring women's handbags and essential shoe care products. Gents haven't been forgotten either, with a selection of work shoes, briefcases, and casual sandals waiting to be discovered.
Headquartered in Karnal, Haryana, Liberty Footwear boasts a rich history dating back to 1954. With six manufacturing units churning out an impressive 60,000 pairs daily, it's no surprise Liberty has become a global footwear powerhouse. This new Lucknow store adds another chapter to their success story, bringing their diverse range of footwear closer to customers in Uttar Pradesh.

Portuguese luxury brand pé de chumbo has arrived in India with its new Autumn-Winter collection. Founded by Alexandra Oliveira, pé de chumbo is renowned for its playful yet sophisticated pieces, perfect for a special occasion or a red carpet event.
This A/W collection draws inspiration from the ‘caretos,’ masked characters in Portugal's vibrant northern carnival. Fringed wool costumes translate into playful fringes and a bold color palette, with metallics like gold adding a touch of red-carpet glamour.
Oliveira understands the importance of color in different markets. While gold and sparkles play up the party theme, neutral tones offer a more casual option. The same silhouette can become versatile, with a black shirt appealing to Italians and a gold version finding favor in the Middle East. In India, pé de chumbo, in collaboration with AiSPi, aims to customize designs to suit local preferences.
The construction of each piece is a signature element. Thread "draws" the garment, creating 3D volumes and textured surfaces that open or close depending on the design. This seamless technique allows for effortless transformation, from beach party chic with flip-flops to red carpet elegance with the right accessories.
The key to balancing playfulness and sophistication lies in styling. A pé de chumbo dress can be dressed down for a pre-wedding party in India or transformed into a red carpet stunner with the right accessories. It's all about versatility and adaptability, letting the wearer define the occasion.
pé de chumbo's arrival in India promises to inject a dose of Portuguese flair into the party season. With its unique fabrics, playful designs, and adaptable elegance, the brand is sure to win the hearts of those who appreciate quality craftsmanship and effortless style.

19 January 2024, Mumbai

India’s retail sector is about to get a futuristic AI makeover. As per a recent survey by EY, AI (Gen AI) promises to unlock hidden insights from mountains of data, revolutionising the way customers shop and sell.

Historic view

Traditionally, retail relied on data for insights, but Gen AI takes it a step further. It dives into the messy, unstructured data goldmines, extracting gems that were once hidden.

Hence, around 71 percent of surveyed players, mostly from retail, plan to adopt this AI wizard within a year.

Prognosis

Almost 88 percent believe Gen AI will have a significant influence on their businesses, primarily on customer experience (76 percent envision hyper-personalized shopping journeys!).

By 2025, EY predicts a 20 percent profitability boost for the sector, fueled by both reduced costs and happier, spending-spree shoppers.

Presents huge opportunity

India, with its IT prowess and local retail needs, could become a global Gen AI hub.

But challenges lurk amidst the excitement. Privacy concerns about location tracking for targeted promotions necessitate transparent data usage. And there's the skills gap, with 80 percent being less than fully prepared, with many relying on tech partners for implementation.

Angshuman Bhattacharya, EY leader, aptly calls Gen AI a 'seismic shift.’ Boards, CEOs, and CIOs need to lead this charge, balancing innovation with responsibility, he adds.

Quick insights

Mood-Infused Style Portals:

• Ditch the aisles, dive into your dream closet. Groceries pirouette on your fridge - AI orchestrates the culinary tango. (Maintains rhythm and playful imagery)

Retail Sorcery:

• Cravings conjured, not bought. AI sculpts your desire in pixels, from designer threads to feast-fit-for-a-king. Reality? Just a wish away. (Highlights the "out of thin air" aspect and adds a touch of luxury)

Foresightful Shopping:

• Smarter than smart pants: self-healing clothes, never-empty pantries, homes that morph with your vibe. AI reads your needs before your thoughts do. (Emphasizes the intuitive and adaptive nature of AI)

Tailored Experiences:

• Mass production? So last season. AI paints your retail canvas, every brushstroke a reflection of you. Shop your story, made to order. (Connects the idea of personalization to self-expression)

Ethical Oasis:

• Try-ons, not returns. Sourcing with a conscience. AI guides you to values-aligned haven, where mindful choices sing louder than siren calls. (Emphasizes the positive impact of AI on sustainability and conscious consumerism)

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