Indian brands are making their presence felt globally. Apparel brands are not an exception. The booming UAE market is sure to open new vistas of growth for them. Read on to know more
According to the expert ratings, the UAE is one of the top five leading apparel markets of the world today. Many international brands, including apparel brands from India are entering or expanding the existing footprint to capture the region’s growing consumer market which has a reputation of being world’s emerging fashion hub. The studies reveal that internationally, the Emirates have highest sales in clothing per capita.
Market drivers
The factors driving the UAE apparel industry includes; the ample support from the government to the sector, the forays by foreign brands and increasing brand consciousness among the UAE consumers.
The federal initiative: The UAE government has set up Dubai Textile Village (DTV) which is a free zone in the Ras-al-Khor area of Dubai. The textile industry is set to become the largest trading sector after the oil industry in the country. Presently, Emirate’s apparel exports and imports, both are positively trending providing an opportunity for the global brands to gain foothold in the country.
Attractive market: The market potential of the UAE is immense. The Indian apparel brands are competitive in terms of quality and pricing, and can create an impact. The region’s geographical proximity and the large Indian expat community offers ease of setting operations. This has encouraged many Indian brands to develop presence in the UAE market. Rakesh Pandey, President Retail, Raymond Limited confirms: “The UAE’s proximity to India and its fashion-conscious population comprising different nationalities, were key considerations for Raymond to foray into this market. The UAE was a perfect destination to project Raymond’s textile and apparel strengths to a diverse global audience.”
Major Indian brands
Several Indian brands have affirmed presence on the UAE apparel market scene since many years. Not only in the Emirates but also, in the wider Middle East market, Indian apparel and majors namely Raymond, Siyaram’s, Bombay Dyeing, Fabindia are well known. Some of the apparel brands have forayed into the region recently. These brands have entered the region’s market through distribution, retail or the franchise model. Some of the Indian apparel brands are discussed to give an insight to this growing trend.
Textile brands having strong presence in the UAE
Key Indian textile brands are looking to ramp up their presence in Emirates.
Raymond : Raymond has a distribution and retail network in the UAE. The brand began distributing its products in 1976 in the country. It established the first-ever exclusive ‘The Raymond Shop’ (TRS) in July 1993. The company distributes brands like Raymond Premium Apparel, Park Avenue, ColorPlus, Parx and Notting Hill through a wide spread distribution network that covers 10 exclusive ‘The Raymond Shop’s’, a wholesaler and around 100 multi-brand outlets. In addition, ColorPlus has three exclusive brand outlets in Emirates.
Arvind Ltd: The textiles conglomerate and apparel retailer Arvind Ltd has grown strength to strength in India. The company will be looking at 700 to 1,000 locations in coming years in India and expects to achieve 30 to 35 per cent of its total turnover from export of textiles. Brands like Arrow already have presence in Dubai, and other parts of Middle East. Further, the company is also considering the Dubai market for the brand’s store concept.
Siyaram’s: Siyaram’s has established its retail presence in the UAE. In 2009, the brand had four stores in the Middle-East and was seeking expansion in Qatar and the UAE, where it already had presence through four Siyaram MSD outlets. The company has brands like Siyaram’s, Oxemberg, J.Hamstead, MSD, Mistair and J.Hamstead in its brand portfolio. It is looking to strengthen its presence in the region through mix of owned and franchised outlets.
Fashion/luxury apparel brands getting foothold
Fashion brands are also viewing Emirates and the Middle East to be an important location to scale up internationally.
Manyavar: Indian menswear brand Manyavar, owned by Vedant Fashions has entered the market via franchise route. The brand’s franchise partner Kothari Trading has launched its first store in Dubai and is targeting to cover Sharjah, Abu Dhabi, and other major cities of the country. Mohit Tikmany, CEO, Vedant Fashions, states: “We have very high expectations from the store, as 75 per cent of the Dubai population consists of Indians. Our international expansion plans are massive. Since the opening of the store, the results have been three times more than expected.”
Kimaya: Promoted by Pradeep Hirani, Kimaya is India’s largest luxury fashion house and operates high-end designer stores, primarily focusing on Indian ethnic women wear. It currently manages more than 35,000sq.ft of premium retail space across India and Dubai. The company has recently opted for private equity route to fuel their domestic as well as international expansion. It plans to open 40 to 50 stores in India and across the globe within the next few years. The company is considering regions where Indian pockets are populous and the strong demand for Indian fashion in locations like New York, South Africa, Japan, Abu Dhabi, Kuwait.
Selecting partners
The brands may follow any route for expansion such as retail, distribution or franchise. The challenges that vary according to the model pertain to the launch or even survival in such a competitive biz space. Pandey gives an insight to the challenges faced by the brands trying to garner their market share in the UAE. He says: “Some of the challenges Raymond encountered in the market were in identifying a channel partner for distribution and designing the appropriate product, packaging and shopping experience to suit consumer taste in a rather new market.” Commenting on how the company gained a dominant share in the market, Pandey adds: “Distribution partners are selected on the basis of their track record in the business of Textiles and Garments, their financial strength and ability to strengthen brand ‘Raymond’ in the UAE.”
Future prospects
As discussed, the growth and profit potential for Indian apparel brands in the UAE is tremendous. Gauging the lucrative market, the brands are also mulling further expansion or planning to enter the country’s retail space. The brand like Raymond has plans to open 50 new stores in UAE over the next five years. Elaborating the expansion plans for Manyavar, Tikmany says: “Dubai is a popular tourist destination and people across the globe visit this place, it is the buying hub for the Muslim countries. After entering Dubai we want to cover all the cities in UAE, namely, Sharjah, Abu Dhabi, and many more.”
Conclusion
The apparel industry in the UAE boasts of the leading international brands from across the globe. To cater to the country’s apparel market, the Indian brands need to bring in latest and quality products in line with innovative trends to suit the season and selection of the Emirati consumers. Only, then they will be able to survive competition and claim their share in the promising UAE market.
