Reliance, Arvind competing in affordable luxury segment

With Arvind forming a JV with PVH to retail Calvin Klein Jeans apparel and

accessories and Calvin Klein Underwear (including sleepwear and loungewear) businesses, the Lalbhai-led company is racing ahead to lead the affordable luxury segment. However, there is tough competition in the segment from none other than Ambani-led Reliance Brands, who is on an aggressive expansion drive for its joint venture partner-US-based Brooks Brothers.

Mid-premium, affordable luxury or bridge-to-luxury industry is nearly 200 million dollars (over Rs 1,200 crores) market in India, expanding at 40 per cent annually. Rising awareness and purchasing power among Indian consumers is attracting numerous foreign brands in this segment. The price points range between Rs 4,000 and Rs 8,000 for a shirt.

Arvind is looking at being a billion dollar company with Calvin Klein’s entire portfolio and other brands like Arrow and IZOD and Tommy Hilfiger's Indian unit. Whereas, for the 200-year-old brand Brooks Brothers, the newest entrant into the affordable luxury market, India is emerging as fastest growing market in the Asia Pacific region. The brand plans to double its store count to 20 in the next four to five years.

From the current share of 70 per cent, Arvind is eyeing close to 90 per cent share in a market that also includes brands such as Lacoste, Gas, and Armani Jeans. Gas is present in India through a JV with Reliance Brands.