A unique mix of Indian culture with a twist of modernity designed with skilled craftmanship is the USP of most Indian fashion designers who are making a mark in the premium apparel segment with wearable everyday pieces to luxury bridal couture. While some are globally-renowned large fashion houses of talented and creative fashion and accessory designers, others are those quietly working behind the scene for the intricate embroidery, embellishments and fabrics from prestigious fashion houses like Versace, Hermès, Christian Louboutin, Gucci, Prada, Dior et al.

Although analysts opine Manish Malhotra is probably India's richest fashion designer at the number one position, other big names such as: Tarun Tahiliani, Ritu Kumar, Rohit Bal, Sabyasachi Mukherjee, Neeta Lulla, Rohit Bal, Masaba Gupta, Anamika Khanna, Anita Dongre and more promote their fashion houses with their own USP and customer loyalty across the globe.

Corporate tie-ups a win-win 

There is a trend of designers are tying up with large corporate houses and companies with technical expertise for go-to-markets globally and for smaller towns within India. Indeed, these tie-ups are a win-win for both corporates and the designers as it helps them scale up faster rather than on their own.

In fact, Tahiliani was one of the first to get funding from a corporate house like Aditya Birla Fashion and Retail Group (ABFRL) with his long-standing relationship with the chairman Kumar Mangalam Birla, who had been a customer of Tahiliani’s Ensemble for decades. Similarly, ABFRL bought a 51 per cent stake in House of Masaba Lifestyle, which showcases apparel, personal care, and accessories under the Masaba brand, owned by designer Masaba Gupta. Meanwhile, Reliance Brands bought 52 per cent stake in Ritu Kumar, around 51 per cent in Abu Jani Sandeep Khosla and 40 per cent in Manish Malhotra and this is slowly changing the game for the luxury market. Back in 2008, the then-successful Kishore Biyani’s Future Group had a 23 per cent stake in Anita Dongre, which was later sold to private equity player General Atlantic for around Rs 150 crore.

As per a Statistica market survey, global luxury fashion market is worth around $1.53 billion in  2023 and it is expected to grow annually at 1.32 per cent CAGR from 2023-2028. The Indian luxury segment fashion houses have now expanded from just producing for the global markets and instead becoming one of the largest domestic consumer markets for apparel and accessories. 

Many international brands are now investing in business relationships with Indian corporate houses and well-known designers are more focussed on the domestic rather than the global and NRI market. 

Good for business 

As per real estate consultancy Knight Frank’s Wealth Report 2023, India is set to see around 58.4 per cent increase in ultra-high-net-worth individuals along with those having a net worth over $30 million, from 12,069 in 2022 to 19,119 in five years by 2027.

Perhaps what works for designers through these tie ups is they can leverage the deep understanding of the affluent Indian customers and their heft across digital, retail operations, marketing, and supply chain platforms to grow their business. The corporate houses on their part are creating a platform for designers and domestic artistic subsidiaries and talent to merge with home owned and well established strength in fashion and luxury retail business worldwide. 

However, for effective collaborations especially for global markets, Indian designers need to tick various boxes to be considered worthy at a global level. From greenwashing to sourcing right, fashion designers also need to be forward thinkers in today’s scenario. You have to check it all. Whoever wears the crown in the end, the ball seems to get rolling towards more mergers and innovative strategies to bring more business.