Aditya Birla Fashion To Bring Luxury Label Christian Louboutin To India
Known for its red soles, Christian Louboutin was founded in 1991 in Paris.
Aditya Birla Fashion and Retail Ltd. has partnered with French fashion designer Christian Louboutin as the conglomerate builds a portfolio of luxury brands as demand for high-end products continues to rise in India.
This partnership envisages the transfer of the current Indian business into a newly incorporated subsidiary of ABFRL, where the partners will hold equal stakes, the Mumbai-based retailer said in a statement on Wednesday.
Known for its red soles, Christian Louboutin was founded in 1991 in Paris. It has eventually diversified into men’s footwear, leather goods and accessories, beauty and kids, and is now present in over 30 countries.
"This partnership reflects our commitment to offering our discerning customers the very best in elegance and style," said Ashish Dikshit, managing director, ABFRL. "It also exemplifies our ambition to develop and shape the future of the luxury market in India.”
India is the latest overseas market for department stores from Europe and the U.S. after opening in other countries in Asia and the Middle East. After all, the number of high-net-worth individuals (assets of over $1 million) is expected to grow 77% between 2021 and 2026, while the count of ultra-high-net-worth individuals (assets of $30 million and more) is estimated to rise 39%, says the Knight Frank Wealth report for 2022.
"India is an extremely important market for us,” said the Group Chief Executive Officer of Christian Louboutin, Alexis Mourot.
In the fashion space, the two big conglomerates—Reliance Industries and Aditya Birla Group—are trying to meet the rapidly-growing demand for luxury through their various partnerships with global fashion brands. These retailers are also tying up with Indian luxury designers in a big way.
ABFRL, for instance, has acquired majority stakes in Sabyasachi, Shantanu & Nikhil, and House of Masaba to cash in on the demand for ethnic luxury.
The latest collaboration move follows Aditya Birla Fashion’s decision to bring luxury department store chain Galeries Lafayette to India via large stores and a dedicated e-commerce platform in 2022. ABFRL also runs The Collective, which houses over 100 international brands for men and women, ranging from Versace to Michael Kors and Armani. It also has long-term exclusive partnerships with brands such as Hackett London, Ted Baker, Ralph Lauren, Fred Perry, Forever 21, American Eagle and Reebok.
“We are excited to welcome Christian Louboutin into the ABFRL family and build a strong platform for the brand in India," Satyajit Radhakrishnan, CEO of international business at ABFRL, said. "The brand’s distinctive style and craftsmanship appeal to a discerning Indian audience that is growing rapidly."
With revenue of Rs. 12,418 crore and retail space spanning 10.8 million square feet, Aditya Birla Fashion and Retail is India’s first billion-dollar pure-play fashion powerhouse. In all, the company has a network of 3,977 stores across roughly 33,535 multi-brand outlets with 6,723 points of sales in department stores across the country, as of March 31, 2023.
Shares of ABFRL closed 0.6% lower on the BSE on Wednesday as compared with the benchmark Sensex's 0.5% gain.
