Clovia, an online lingerie shop, has been acquired by Reliance Retail for an 89 per cent share.
According to a statement released by the firm on March 20, Reliance Retail Ventures (RRV) has purchased an 89 per cent ownership in online lingerie retailer Clovia in a Rs 950 crore deal that comprises both primary and secondary share sales. Clovia’s original team and management will own the remaining interest in the company, according to Reliance Retail Ventures. It is RRV’s third online lingerie business, following Zivame and Amante.
It is a division of Reliance Industries Limited and an Indian retail enterprise and was founded in 2006 and is India’s top retailer in terms of revenue. Foods, groceries, garments, footwear, toys, home improvement products, electrical goods, and farm implements and inputs are all available at its retail locations. The company sells products through its e-commerce channels in addition to its physical locations. Reliance Retail has around 45 businesses and divisions. The most prominent are:
It is a convenience store format that is part of Reliance Industries of India’s retail operations through its subsidiary Reliance Retail. It was founded in the year 2006 and has served in 93 cities in India. It deals with Fruit, vegetable, and grocery retail outlets.
Fresh produce, bakery, dairy products, home, personal care products, general merchandise, fruits, vegetables, and groceries are all available at Reliance Smart, making it a one-stop shopping experience.
It is a consumer electronics shop based in India and is a completely owned subsidiary of Reliance Industries and is a subsidiary of Reliance Retail. On April 24, 2007, Reliance Digital inaugurated its first store in Delhi. Also, an online presence, there are currently over 8,600 Reliance Digital and 1,800 My Jio outlets in over 800 cities across India. Delhi, Uttar Pradesh, Andhra Pradesh, Gujarat, Karnataka, Kerala, Maharashtra, Tamil Nadu, Telangana, West Bengal, Orissa, Assam, Bihar, and Jharkhand are among the states with stores. Reliance Digital Stores’size is larger than the Digital Xpress Mini Stores. With over 5,000 products in its catalogue, it is one of India’s leading electronics merchants.
Jio, the cellular company, established LYF in 2015. Smartphones that were under the brand were set to launch in November 2015, closely aligned with Jio’s 4G services. They released their first set of 4G-enabled smartphones in January 2016, naming them after the four elements: Earth, Flame (Fire), Water, and Wind. LYF (pronounced “life”), often known as Jio LYF, is a Jio-owned brand of smartphones, laptops, and consumer goods based in Mumbai, India.
It also makes Android-based VoLTE handsets with 4G capabilities and is a subsidiary of Reliance Industries’ Jio, the company’s telecommunications department. In 2016, LYF was India’s fifth-largest smartphone player and second largest LTE phone seller, according to Counterpoint Research.
In the fiscal year 2012–13, it brought in around $8 billion in revenue.
Deals with clothing and apparel. It earned revenues of around 16 billion dollars in the 2012–13 fiscal year, with 287 stores.
In the 2012–13 fiscal year, it made almost 1.6 billion dollars in revenue.
JioMart is a Reliance Retail e-commerce business that offers groceries delivery from local Kirana stores. It was founded as a joint venture between Reliance Retail and Jio Platforms and operates in 200 locations across India. They began as a joint venture between Reliance Retail and Jio Platforms and is headquartered in Navi Mumbai, Maharashtra, India. The company began by selling online grocery before branching out into other product categories like fashion, home basics, and leisure items. In December of this year, the platform was soft-launched.
In April 2020, a trial was launched in select regions of Navi Mumbai, Thane, and Kalyan. JioMart was completely operational in 200 cities and villages across India by May 2020. The JioMart app has over one million downloads within a few days of its launch. JioMart and Infibeam Avenues signed a deal in October 2020. Jio will employ Infibeam’s technology to power its e-commerce and digital payments services as part of this agreement.
Reliance owns Hamleys, a British international toy retailer. In 1760, William Hamley established “Noah’s Ark” in High Holborn, London. In 1881, it relocated to its current location on Regent Street. This flagship store spans seven storeys and offers more than 50,000 toy lines. Every year, it attracts roughly five million tourists. The chain has 15 locations in the United Kingdom and over 90 franchises around the world. Hamleys is the world’s oldest and largest toy store.
It was named after William Hamley, who opened “Noah’s Ark” toy shop at 231 High Holborn in London in 1760. The shop was passed down through the family, and by the time it was run by Hamley’s grandchildren in 1837, it was well-known, with royalty and nobility among its patrons. In 1881, a branch at 200 Regent Street was established. In 1901, the original High Holborn store was destroyed by fire, and it was reopened at 86–87 High Holborn. In 2019, Reliance Retail purchased Hamleys, one of the world’s oldest and largest toy shops.
Shri Kannan Departmental Store
Shri Kannan Departmental Store is a chain of grocery stores that sells fruits, vegetables, dairy, basics, home and personal care products, and miscellaneous commodities. In Coimbatore, it has 29 stores.
Urban Ladder, established in Bangalore, India, is an omnichannel furniture and decor retailer. Urban Ladder now operates three stores in Bangalore and distributes to more than 75 cities across India via its website. In July 2012, Ashish Goel (CEO) and Rajiv Srivatsa co-founded Urban Ladder Home Decor Solutions. Previously, Goel worked for McKinsey & Company and was the CEO of Amar Chitra Katha. Before co-founding Urban Ladder, Rajiv Srivatsa worked for Cognizant and Yahoo!
Urban Ladder is a design-driven, multi-channel furniture and home decor business. Urban Ladder launched as an online-only brand in 2012, with over 5000 designs spanning 35 categories, including living, dining, bedroom, study, and decor. In an endeavour to become an omnichannel company, Urban Ladder shifted to offline retail in 2017. It inaugurated its first flagship store in Bangalore on July 8, 2017, and now has four offline locations in the city.
Future Group is a subsidiary of Reliance Retail and was formed by Kishore Biyani. It is situated in Mumbai, Maharashtra. With prominent grocery chains like Big Bazaar and Food Bazaar, as well as lifestyle outlets like Brand Factory and Central, the company is well-known in the Indian retail and fashion sectors. The company is also well-known in the integrated foods and FMCG production industries. Future Retail Limited and Future Lifestyle Fashions Limited, two Future Group operational firms, are among the top retail companies listed on the Bombay Stock Exchange in terms of assets and the National Stock Exchange of India in terms of market capitalization.
Future Group is a business conglomerate that manages practically all of its operations through its several operational entities based on target industries. For example, its retail division, Future Retail Limited, operates retail supermarket/hypermarket chains Big Bazaar, FBB, Food Bazaar, Food Hall, Hometown, and others. At the same time, its fashion and clothing outlets – Brand Factory, Central, and Planet Sports are run by another of its subsidiaries, Future Lifestyle Fashions Limited. Furniture is sold in HomeTown stores across the country and online.
The group also promotes its fashion and sports brands such as Indigo Nation, Spalding, Lombard, Bare, and FMCGs such as Tasty Treat, Fresh & Pure, Clean Mate, Ektaa, Premium Harvest, Sach, and others through these numerous retail boutiques and supermarkets.
Netmeds is a Chennai-based licensed e-pharmacy. Reliance Retail paid Rs 620 crore for a 60 per cent share in Netmeds’ parent company Vitalic.
Pankaj Vermani began his lingerie career at a young age. His father owned a lingerie store in Meerut’s main market, Sadar Bazar. Vermani’s father required him to spend two hours a day in the shop when he was in standard XII in 1994. He told him, “It builds character.” Most of the customers were males who came into the shop and murmured what their spouses required to his father, who then meticulously wrapped the items in a brown bag.
Vermani and his wife, Neha Kant, created the online private label Clovia in 2013, which sells everything from backless bras and balconettes to G-strings and thongs. Bras are sold based on the cup size as well as the band size. Meanwhile, online lingerie retailers have gone crazy with colour, going far beyond the white and beige options of the 1990s. Clovia’s bras now have “flaunt-worthy” straps on 95% of their models.
Clovia is growing in the lingerie business, which is worth Rs 18,000 crore. In the last six months, it has risen to become one of the top lingerie brands on marketplaces such as Myntra and Flipkart by capitalizing on a flaw in the offline distribution system, which was retailer-driven rather than consumer-driven. The retailer only sold items that were simple to stock. There was very little creative thinking or variation in design and fit.
Clovia introduces 100-150 new alternatives each month and sells between 250,000 and 260,000 units per month at an average selling price of Rs 300. On the other hand, Third-party markets account for only 35% of its sales. A majority of its business (50%) comes from its own website, with another 15% coming from offline (the company operates kiosks in nine airports). Tier-II and tier III cities account for over 60% of company revenue.
Surprisingly, the company is profitable in terms of operations. “The first emotion evoked by e-commerce is ‘burn.’ Since the beginning, we have been operationally profitable after marketing. “Our marketing is always paid for from our profit margins”, Vermani states this from his office in Sector 6 of Noida.
His wife, the company’s Chief Revenue Officer, Neha Kant, sits next to him. Suman Chowdhury, the company’s Chief Operating Officer, has dubbed himself a ‘bra-smith.’ Coffee is consumed by all. The coaster on which this writer’s Americano is served includes an image of a blonde in a green-printed bikini with the words “You’re naughty only if you get caught.”
The Noida headquarters also serves as the company’s design centre. Ten outsourced manufacturers receive the designs and raw materials. Each factory’s quality control personnel keep a close eye on everything. The underwear is sewn and then stored in a warehouse near Delhi. The secret to its operational prosperity has been how it controls the various moving parts, including inventory.
In June 2015, Clovia raised Rs 30 crore in Series A funding from Ivy Cap Ventures. “We have expanded 4.7 times as a company between then and now,” Vermani says. “They have only spent Rs 15 crore so far to get to where they are present. It is not a trivial matter “Ivy Cap Ventures’ Founder and Managing Partner, Vikram Gupta, states, “There were competitors who raised four times as much money as these men. The reality, on the other hand, is plain to observe.”
It was founded by Richa Kar. Zivame is a women’s clothing and intimate wear retailer that sells online. The company sells women’s lingerie, swimwear, loungewear, nightwear, and other related categories, as well as providing consultation to help women choose affordable and branded things, allowing them to get all of their clothing needs addressed in one place, which is the company’s online portal. Zivame, an online lingerie retailer with hundreds of designs for Indian women, debuted its website in August 2011.
Customers may search for lingerie by category, brand, colour, size, and even what they want to wear it under. Zivame replicates the offline shopping experience by offering detailed product pages, low-cost expedited shipping, and a simple return policy.
MAS Holdings, a Sri Lankan company, created the lingerie brand ‘Amante’ in India and is now planning to recreate the successful storey in Sri Lanka within the next two years. With an annual turnover of $700 million, MAS Holdings is South Asia’s largest intimate clothing producer, producing lingerie for well-known international brands such as Victoria’s Secret and Marks & Spencer.
In October, RRVL paid an undisclosed sum for a 52 per cent ownership in Ritika Pvt Ltd, the firm of legendary couturier Ritu Kumar. Reliance Brands Ltd (RBL) has also announced that it has acquired a 40% minority investment in MM Styles Pvt Ltd, which is owned by renowned fashion designer Manish Malhotra.
Mr Ajay Amalean, Managing Director of MAS Corporate Solutions and Retail, India, told Fibre2fashion exclusively, “We achieved a sales growth of 150 per cent in 2009, compared to 2008, and have projected growth of 75 per cent in 2010, which is well above the industry average for the premium segment, and consists of three major players with an approximate growth rate of 30-40 per cent.”
They have made certain modifications to their products keeping in mind their sensibility of the Indian woman, like classic pieces that are must-haves to complete any wardrobe and finely crafted lingerie that offers style, support, and comfort in equal measure. When asked about the product modifications made to satisfy the diverse Indian customer, this was explained.
“To give you an idea of a few of our goods, all of our padded bras have two mm ultra-thin cups to ensure a smooth appearance beneath clothes and to become invisible beneath outerwear, and they were developed to change the view that padded bras increase bulk.”
The fortitude, a unique wire casing fabric by MAS, is encased in a thin, flexible skin-friendly wire that is encased in a soft oval casing to decrease underwire loss through wear and tear.
“We tried a lot of silhouettes and only found two or three that work. Full cover and Demi are the most popular silhouettes in India. Plunges, halters, and balconettes aren’t widely accepted, so we modified some styles to meet the needs of Indian women.
“In terms of color pallet, brilliant shades like bright pinks, blues, and yellows did not go down well with Indian skin tones, therefore darker and richer tones like maroons, burgundy, and violets were introduced in addition to classic shades.”
“The focus for Amanté over the next 3 years will be to consolidate their India operation, therefore they have no plans to expand beyond India before the year 2012,” he said when asked about the brand’s future plans in India. “In India, the focus will be on expanding the width & increasing the efficiency of our distribution network and streamlining our replenishment and stockholding process.”
“Reliance has always been in the forefront of enhancing choices and offering the greatest value proposition to consumers,” RRVL Director Isha Ambani said in response to the news. We’re excited to welcome ‘Clovia,’ a stylish, high-quality, and design-driven intimate apparel company, to our portfolio. We are excited to work with Clovia’s outstanding management team to help the company reach new heights.”
“Clovia is pleased to join the Reliance Retail family,” said Clovia Founder & CEO Pankaj Vermani. We will benefit from Reliance’s scale and retail knowledge through this agreement, growing the brand’s visibility and bringing together a greater value proposition in the intimate apparel category through world-class quality, design, and fashion.
Edited by Prakriti Arora