After Next, Nautica and Debenhams, Arvind Lifestyle Brands, a subsidiary of Arvind Ltd. one of the largest players in the apparel brand and retail space, is now set to bring global surfwear brand Billabong to India.
The company has signed an exclusive distribution agreement with the iconic surf lifestyle brand Billabong in India. Following this, Arvind will now market Billabong's products through open stand-alone stores as well as shop in shops in department stores and leading multibrand stores.
In turn, Billabong will leverage Arvind's significant expertise in building international brands in India to enhance its iconic status and presence in this important emerging market. All of which will help Arvind further its category leadership in the retail space through its truly robust multi-brand, multi-price and multi-channel strategy, the company stated in an official communique.
"We are delighted to sign a distribution agreement with Billabong, one of the world's largest surfwear brands with a turnover of $1.5 billion (roughly over Rs 8,000 crore). Billabong is strongly focused on youth and is ideal for the Indian market which has the largest youth demographic in the world," said J Suresh, MD and CEO, Arvind Brands and Retail.
According to Phil Nicole, general manager, Asia, Billabong, Arvind has a network of 730 stores and 650 shops in shop counters and is one of the largest branded apparel companies in India. "Arvind has licensing relationships with a number of international partners and has grown many international brands into market leaders in India. We are therefore convinced that we have found in Arvind a great partner for Billabong as we seek to further grow our Asian operations," said Nicole.
The distribution arrangement with Billabong will significantly enhance Arvind's already strong position in the high potential youth segment. Billabong is a celebrated and iconic global youth board sport and lifestyle brand, that will allow Arvind to cater to both men's and women in one of the fastest growing and exciting youth markets in the world.
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On its part, Arvind is targeting revenues of Rs 5000 crore from its brands and retail businesses in the next five years by strongly leveraging its strengths in production, marketing and distribution. While Rs 3000 crore would come from growing the business organically at a CAGR of 20 per cent, the rest would come through acquisitions, new brands launches and JVs.
Meanwhile, the acquisition of the business operations of Debenhams, Next and Nautica is the first step in its inorganic growth strategy to cross the Rs 2000 crore revenue mark in the next five years.