Aditya Birla Fashion is launching a direct-to-consumer (D2C) business platform
The D2C portfolio will be built organically and inorganically, according to ABFRL, and will initially be funded through internal accruals
On Friday, Aditya Birla Fashion and Retail Ltd (ABFRL) stated that it will establish a platform to enter the Direct-to-Consumer (D2C) market. A board meeting today overwhelmingly endorsed the plan. The corporation will create a new subsidiary with the goal of developing a portfolio of new-age, digital brands in areas like beauty, fashion, and other related lifestyle segments.
The D2C portfolio will be built organically and inorganically, according to ABFRL, and will initially be funded through internal accruals.
To expedite growth, the company plans to progressively bring in outside financing. By 2025, the D2C market is anticipated to be worth $100 billion.
Other D2C brands will be incubated and acquired by the new corporation. ABFRL will contribute its extensive knowledge and capabilities to the portfolio's expansion.
ABFRL's Managing Director, Ashish Dikshit, stated, "At ABFRL, we want to build the next set of iconic brands in the digital space as we evolve with our changing consumers. Leveraging our core capabilities around design, product creation, sourcing and brand building that have enabled us to create some of India's most loved fashion brands in the offline space, we now wish to craft a blockbuster portfolio in the digital space as well."
The organisation will now speed up the framework-building process and identify critical people to help with this. To scale the business, it will tap into the IT ecosystem and engage with its ecommerce partners, tech service providers, and digital marketing firms.
ABFRL, which is part of the Aditya Birla Group, has a diverse portfolio of top fashion brands and retail formats. The company maintained a network of 3,370 locations across India, with roughly 26,744 multi-brand outlets and around 6,751 points of sale in department stores as of December 2021. Leading labels like as Louis Philippe, Van Heusen, Allen Solly, and Peter England have been around for almost 25 years, while Pantaloons is India's largest fast fashion retailer. Tasva, Jaypore, and strategic relationships with designers Shantanu & Nikhil, Tarun Tahiliani, and Sabyasachi are among the company's forays into branded ethnic clothing.
