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Tag: Arvind Lifestyle Brands

  • Zara, Gap, Body Shop slash Indian retail prices

    Zara, Gap, Body Shop slash Indian retail prices

    Global brands like Gap, The Body Shop and Zara are slashing Indian retail prices to stay competitive in the heavily price-sensitive market.

    UK cosmetic brand The Body Shop slashed prices across categories in India by 20 to 30 per cent last week, and US fashion brand Gap is looking to have up to 40 per cent of its products made locally, which should allow prices to drop by 10 to 15 per cent.

    “The process has started,” says CEO J Suresh of Gap’s India franchisee Arvind Lifestyle Brands. The Indian-made items will be introduced next year.

    The Body Shop India COO Shriti Malhotra says its price cuts will make its products more accessible.

    Spanish fast-fashion brand Zara is also looking at slashing its prices to bring them closer to Swedish rival H&M.

    It quotes experts as saying price cutting is one of the most effective ways to boost sales and market share in India, particularly in highly competitive and fast-growing segments.

    “Most brands strategically lower prices for the value-conscious Indian consumer,” says CEO Devangshu Dutta of retail consultancy firm Third Eyesight.

    Inditex-owned fashion brand Zara reduced prices by up 15 per cent when H&M entered the Indian market in October 2015 with its global strategy of aggressive pricing. The move helped Zara record 17 per cent sales growth last year.

    When Arvind Lifestyle Brands took over the business of beauty and wellness retailer Sephora from former franchisee DLF Brands in September 2015, its first move was price correction. “We looked at pricing in Dubai and Singapore and kept it in the band of 5 to 10 per cent lower than that,” says Sephora India CEO Vivek Bali.

  • DLF Brands quits luxury sector

    DLF Brands quits luxury sector

    India’s DLF Brands, which runs high-street fashion brands mall Emporio in Delhi, is quitting the luxury business.

    It has just shut down two of the seven stores of US fashion brand DKNY after parting ways earlier with such brands such as Giorgio Armani, Mango, Salvatore Ferragamo and Sephora.

    “We don’t have any plans to open more DKNY stores,” says DLG Brands MD Timmy Sarna. “And we don’t want to be in the high-fashion business. It’s difficult to scale up that business because there aren’t too many locations in the country where you can sell luxury.”

    Instead, DLF Brands, the retail arm of real-estate company DLF, wants to focus on mass brands. “We have profitable businesses in Kiko, Mothercare and Sunglass Hut,” says Sarna.

    DLF Brands has bought the franchise rights of UK-based Mothercare for 15 years, and plans to launch smaller stores, even in community-based markets, selling value-added products.

    “From 109 stores at present, we want to increase the number to 300. A major part of production is happening here now, so prices will eventually come down,” Sarna says. “Apart from this, our other brands such as Sunglass Hut, Claire’s and make-up brand Kiko are doing extremely well and are profitable.”

    DLF Brands started its exit from the luxury market in 2012, quitting its joint ventures with Ferragamo and Giorgio Armani. In 2014, it shut down stores of Italian menswear brand Boggi Milano, then last year parted with LVMH’s make-up and skincare brand Sephora, which was taken over by Arvind Lifestyle Brands.

    “You can either be in the fashion business or in the mass-brand business. You cannot have your finger in too many pies,” says Sarna.

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  • Keppel Land China, Alpha divest stakes in Sparkle Bright for $516.9m

    Keppel Land China, Alpha divest stakes in Sparkle Bright for $516.9m

    Keppel Land China Ltd and Alpha Investment Partners Ltd (Alpha) have divested their 80 per cent stake in Sparkle Bright Holdings Limited (Sparkle Bright) for  $516.9 million.

    Keppel Land China and Alpha signed an agreement with Star Champ Development Ltd, a wholly-owned subsidiary of the Chongbang Group (Chongbang), for the transaction.

    Sparkle Bright owns retail mall Life Hub @Jinqiao (Life Hub), a mixed-use development in Shanghai, China. Chongbang owns the other 20 per cent stake in the development.

    Keppel Land China holds a 42.5 per cent interest, while Alpha Asia Macro Trends Fund II and a co-investor hold the remaining 57.5 per cent in the 80 per cent stake in Sparkle Bright.

    Keppel Land China and Alpha are wholly-owned subsidiaries of Keppel Land Limited and Keppel Capital Holdings, respectively.

    Life Hub features about 114,730 sm gross floor area of retail shops spread over 10 low-rise retail buildings as well as a 10-storey office tower with a retail podium. It has been one of the popular attractions in Shanghai’s Pudong District since 2009.

    The retail mall is currently 97 per cent leased while the office tower is fully occupied.

    The divestment is expected to be completed by the end of September 2016. The Group expects to recognise a gain of approximately S$73 million from the divestment.

    Keppel Land CEO Ang Wee Gee said the divestment is in line with Keppel Land’s strategy to continually recycle assets to seek higher returns.

    “Keppel Land China’s collaboration with Alpha reflects how different business units are working closely together to harness the collective strengths of the Keppel Group,” Gee said.

    Since the acquisition of the property in 2013, Keppel Land China and Alpha have been working with the mall operator to continuously enhance the tenant mix and shopping experience.

    Christina Tan, CEO of Keppel Capital and managing director of Alpha, disclosed they have been able to realise an internal rate of return of over 20 per cent on the sale of the development.

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  • The Children’s Place lands in India

    The Children’s Place lands in India

    US retailer The Children’s Place has opened its first store in India.

    The brand has entered the market in partnership with Arvind Lifestyle Brands, opening its first store in Bengaluru.

    The Children’s Place operates about 1200 stores internationally and Arvind Lifestyle hopes to open up to 40 in India during the next four years, largely located in Delhi, Mumbai, Bengaluru, Hyderabad and Chennai.

    Arvind Lifestyle CEO J. Suresh said the children’s clothes and accessories market is dominated by the ‘unorganised” retailers and his company sees a significant opportunity to gain first to market advantage in the category.

    “We should hopefully be the leading player in the market,” said Suresh.

    Mridumesh Kumar Rai, who heads The Children’s Place business in India added: “We want to be for kids wear what Zara and Mango are for women’s fast fashion in India,” said.

    Arvind Lifestyle sells a broad range of franchised lifestyle brands including Gap, Nautica, Ralph Lauren, US Polo and Elle. Earlier this year it announced a partnership with US teen fast fashion brand Aeropostale.

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  • Aeropostale to enter India, Indonesia

    Aeropostale to enter India, Indonesia

    US mall-based youth fashion discounter Aeropostale has announced new partnerships in India and Indonesia.

    The company will open stores in India through a licensing agreement with Arvind Lifestyle Brands Limited, and in Indonesia through a licensing agreement with PT Mitra Adiperkasa TBK (MAP).

    Julian R. Geiger, Aeropostale CEO, said India and Indonesia are two of the most populated countries in the world and his company sees significant opportunities by taking the Aeropostale brand to them both.

    “Following the successful launch of our brand in the Philippines and Singapore, we are excited to capitalise on the strong growth prospects in both India and Indonesia. We are totally comfortable partnering with two of the largest and strongest retailers in their respectful regions, Arvind Lifestyle Brands Limited and MAP.”

    Aeropostale’s expansion plans in India include the opening of 50 standalone stores, 150 concessions and eCommerce operations across the country over the five years, from March 2016.

    The company expects to open 10 to 12 standalone stores in Indonesia over the next five years, with its first store opening in Jakarta in Fall 2016.

    Continued Geiger: “We anticipate ending the year with over 300 locations across 17 countries. Our aggressive international growth underscores the strength and recognition of the Aeropostale brand, and we look forward to announcing new global licensing partnerships throughout the year.”

    Aeropostale  principally targets males and females aged 14 to 17 and four to 12 year-olds through its P.S. from Aeropostale stores and website.

    Arvind Lifestyle Brands has licensing relationships with many international brands including Gap, TCP, Gant, Nautica, Arrow, Izod, US Polo Association, Elle, Ed Hardy, Hanes, Cherokee and Geoffrey Beene.

    PT Mitra Adiperkasa TBK  is a leading lifestyle retailer in Indonesia with over 1800 retail stores and a diversified portfolio that includes Starbucks, Zara, Marks & Spencer, Sogo, Seibu, Debenhams, Oshkosh B’ Gosh and Reebok.