Sleeping with the enemy

Are Indian designers ready to face foreign competition?

If there is feverish talk of corporatisation (debating the merits and demerits of it) in fashion circles, there is also animated conversation about the impact of the entry of several luxury brands in India in recent years. Is this going to kill domestic fashion designers who have till now been successful and enjoyed a great run so far?

Says Pradeep Hirani, owner Kimaya, a fashion store that is soon to be a chain and is bringing in MaxMara into India, "In the long run, international brands will rattle the market. There will be a shakeout, but both Indian and international brands will fall by the wayside. The next five years are going to be crucial."

This is one fact that few within the fashion fraternity are likely to disagree with. But in these five years who or what in the Indian scene is likely to survive?

Says fashion designer Ashish Soni, "The ready-to-wear business of the Indian designers is likely to get affected. The couture business and the customised business of Indian fashion designers is unlikely to get affected."

Soni here knows his onions, or rather his business. Soni's primary business is customised suits and he says that when the first influx of big international suit makers came into India, there was a drop in his business as his clients did go over to that side to try what the international brands had to offer in this segment.

Says Soni proudly, "All those clients have come back to me. The reason that we score over the international brands is that we can offer customisation which the international brands find difficult to provide. Also having been in this market for long, I understand an Indian's body better than them. Also, I can offer multiple styles whereas the international labels can offer only a limited number."

Most people in the business feel that wedding wear that accounts for almost 18 to 20 per cent of the total business that fashion designers do will remain untouched by international luxury brands.

Says fashion designer Ritu Kumar who has dominated this segment for many years, "My clients are very sophisticated and price conscious and not confused about their identity."

Hirani feels that about 10 to 15 Indian designers who are on the top in this segment will not face any crisis.

Hirani says that he has put his money where his mouth is and points out that he has bought a majority stake in fashion designer Pam Mehta's label as she remains one of the highest grosser in his store. Mehta's ouvere is wedding wear though she maintains a low profile in the media.

Shantanu Mehra of the label Shantanu-Nikhil feels that the entry of international labels will help rather than hamper the growth of Indian designers. He says this even as his lable has just launched shirts for men and feels unthreatened that this segment could get hit.

He says: "Indian designers can give international labels a run for their money." Soni makes two points,  adding, "The experiences of international brands will create an atmosphere of luxury and whether good or bad, these experiences are likely to work for us."

He continues, "The retail space which did not exist till now for luxury, be it for Indian designers or international brands is now being created for international luxury brands. That is good for us as well."

Shantanu Mukerji, country head, Zegna South Asia Pvt Ltd,  who has brought in the brand Ermenegildo Zegna says , "Indian designers and luxury brands can coexist. Both industries will grow. The Indian consumer is not spending on one over the other. My personal estimate is that all the brands are selling only 10 per cent of what the demand is."

That should be music to the ears of both Indian designers as well as international luxury brands. A big and a growing market that can support both Indian fashion and luxury brands is something to look forward to this festive season.