Aditya Birla plans to open 500 stores this year
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India’s Aditya Birla Fashion and Retail is set to launch more than 500 stores by the end of the year.
According to reporting in The Economic Times, the firm, which owns the Pantaloons fast-fashion brand, is counting on shifting buyer interest towards its branded clothing despite economic indicators of a lull in consumer spending – and its plans represent three times the company’s normal growth rate. Aditya Birla’s strategy seeks to invigorate spending while speeding up the expansion of exclusive brand outlets, including conversion of some large wholesalers into exclusive brand outlets.
“The general consumption habits are changing, especially in a digitally connected network, when you are seeing a desire for brands and aspiration for better quality products,” said Aditya Birla MD Ashish Dikshit.
“There is a very large movement to buy brands and the opportunity in a country like India will keep emerging from new markets.”
The firm also currently plans to release a line of mass-market traditional ethnic wear, which represents an estimated 30 percent of the overall apparel market in India.
Questions & Answers
Q.What is the primary motivation behind Aditya Birla's decision to open 500 new stores this year?
What is the primary motivation behind Aditya Birla's decision to open 500 new stores this year?
The firm is relying on a shift in buyer interest towards branded clothing. Managing Director Ashish Dikshit noted changing consumption habits and a growing desire for brands and higher quality products, particularly in a digitally connected network.
Q.How does this expansion plan compare to Aditya Birla's typical growth rate?
How does this expansion plan compare to Aditya Birla's typical growth rate?
Aditya Birla's plan to open over 500 stores this year represents a significant acceleration. This target is three times the company's normal growth rate, indicating a very ambitious expansion strategy.
Q.What specific strategies will Aditya Birla employ to achieve its expansion goals?
What specific strategies will Aditya Birla employ to achieve its expansion goals?
The company plans to speed up the expansion of exclusive brand outlets. This includes converting some large wholesalers into exclusive brand outlets as part of a broader strategy to invigorate consumer spending and increase its retail footprint.
Q.Beyond increasing its store count, what other product diversification is Aditya Birla planning?
Beyond increasing its store count, what other product diversification is Aditya Birla planning?
The firm also intends to release a new line of mass-market traditional ethnic wear. This product category is a significant market, representing an estimated 30 percent of the overall apparel market in India.
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