Fast fashion company Brand Studio Lifestyle is targeting net revenue of Rs 1600 crore against Rs 1300 crore last year. The company plans to open 100 more retail stores across the country this fiscal. The fashion brand, which operates brands like Highlander, Talkies, Vishud, Ketch and Locomotive, is aggressively adopting an omnichannel approach.
According to data from Redseer Strategy Consultants, fast fashion is set to be the standout performer in the Indian retail market in 2024. While the overall Indian fashion sector grew at a moderate pace of around 6% YoY in FY24, fast fashion boomed at a staggering growth rate of 30%-40%.
But this rapid growth is just the beginning for fast fashion in India. The current market size is around $10 billion, less than one-third of that of Shein, one of the world's largest fast fashion brands. Driven by huge growth potential, fast fashion in India is predicted to become a massive business opportunity worth over $50 billion by FY31.
Competition increases efficiency
In an interview with Storyboard18, Shyam Prasad, CEO, Brand Studio Lifestyle, spoke about the company's growth and the increasing competition in the Indian market. He also shared the expansion plans for the fashion brand house.
Popular fast fashion retailer Shein is set to enter India through Reliance Retail Ventures. As per the agreement between Reliance and Shein, the Chinese brand will use India as a supplier for its global operations and expand textile and apparel exports from India. Shein will provide technology and expertise to Reliance Retail and integrate its network of 25,000 small and medium-sized enterprises to create a parallel global supply chain from India.
Asked whether Shain's entry into India's fast fashion market poses a threat to incumbents, Prasad said: “Competition is part of any business. That's obvious. If you look at the Indian ecosystem in the fashion industry, we are competing with most international brands. Indian brands are doing very well in the market.”
Elaborating further, Prasad said, “As a fast fashion company, we need to create an ecosystem that spans design, sourcing, manufacturing, logistics and supply chain. Building that ecosystem needs to be very well coordinated. Currently, we work with 360 exclusive vendors and have a 400,000 sq ft warehouse to manage our supply chain. We launch 1,200-1,500 fashion styles every month, which is much higher than the industry average of launching 600 styles per season i.e. spring, fall and summer.”
“We're not a fast fashion company in name only. We've built an extensive supply chain ecosystem across different functions. So we're not concerned at all,” he added.
On competition with existing fast fashion brands in the country, Prasad said, “All other brands in the market are good competitors for us and increased competition will push us to provide better products to the market and consumers. Increased competition will also make us more efficient. Competition brings efficiency into the system.”
Revenue growth and expansion
Brand Studio Lifestyle, which runs Highlander, Tokyo Talkies, Vishudh, Ketch and Locomotive, has expanded its offline presence with Highlander and Tokyo Talkies.
Prasad said, “This year, we are expecting a growth of around 20-25 per cent in terms of revenue. Last year, we were targeting Rs 2,000 crore in revenue and ended up with Rs 1,300 crore. This year, we expect our net revenue to touch Rs 1,600 crore. The fourth quarter last year was not good for the overall industry but this year we are very optimistic about revenue growth. During the festive season, we are expecting a growth of around 20 per cent compared to last year.”
The company plans to open a total of 100 stores by the end of the fiscal year, including 50 Highlander stores, 20 Tokyo Talkies stores, and 30 combined stores selling both Tokyo Talkies and Highlander products.
The company aims to open 70 directly managed and franchised stores, 15 directly managed and franchised stores, and the remaining 15 stores a mix of directly managed and franchised stores by the end of this fiscal year.
Brand Studio Lifestyle is dedicating 85% of its advertising budget to digital platforms and is focusing on IPs that are relevant to the Gen Z audience. Prasad said, “65% of our revenue comes from Highlander and Tokyo Talkies.”
When asked if the company has plans to acquire any new brands or expand its brand portfolio, Prasad said, “Currently, we are not looking to add to our brand portfolio. We are focusing on nurturing our existing brands and building a larger distribution network for them. We are focusing on offline channels and building a distribution network and customer base. We already have a significant online presence.”
Brand Studio Lifestyle began its retail foray in May 2024 and already has 13 stores, including 10 in Gujarat, a flagship store in Hyderabad and two stores in Bengaluru.
“In the first phase, we plan to expand our retail operations in Maharashtra, Delhi, Uttar Pradesh, Karnataka, Andhra Pradesh and Telangana. We have also recently entered the Middle East market and are seeing promising growth there. Our GCC business is at a development stage and the market conditions are similar to India, though consumer preferences are different,” Prasad said.
