Premium global fashion and retail conglomerate Aditya Birla Fashion & Retail Limited (ABFRL) has revealed its plans to acquire the exclusive rights to sell US-based fashion brand American Eagle Outfitters in India.
The news comes amidst reports claiming that American Eagle Outfitters’ exit from the UK was in lieu of dropping sales and shrinking profit margins.
The exclusive partnership with ABFRL hints towards the American Eagle Outfitters’ strategy to enter the booming fashion and retail market in India after the latter’s UK fallout.
ABFRL is owned by the Aditya Birla Group, which is valued at US $ 41 billion and features in the League of Fortune 500. The Group is responsible for bringing international brands such as Simon Carter, Ted Baker, Hackett London among others, to India. The company also houses a premium lifestyle brand, The Collective, that offers top international luxury and high fashion brands in the country.
The retailer is amongst the fastest and most strongly growing companies in India with a reported revenue growth of 25 per cent in the first quarter of FY 2018 as compared to the corresponding period of FY 2017. The revenues from its fast fashion segment tripled during the April-June 2017 quarter due to the addition of Forever 21 brand under their umbrella, while other businesses grew by 63 per cent.
ABFRL further aims to expand its portfolio by adding international labels to compete with fast fashion frontrunners the likes of Zara, H&M and GAP that are eating into the market share of Indian fashion companies through their low-pricing and marketing strategies.
The company boasts of a whopping 7,000 plus points of sale across 375 cities and towns in India, which harbour more than 2,000 exclusive ABFRL brand outlets.
