HOW BIG BUSINESS HOUSES ARE TAPPING INTO THE POWER OF FASHION APPAREL START-UPS

India's fashion industry is in the middle of a digital revolution—and big business houses are taking notice. Instead of building brands from scratch, legacy conglomerates like Reliance Retail and Aditya Birla Group are snapping up nimble, digital-first fashion start-ups. Read to know how these acquisitions are rapidly re-shaping the fashion retail landscape.

- By Parina Sood

According to a 2024 Bain & Company report, over $1.5 billion has been invested in Indian D2C (direct-to-consumer) fashion brands between 2019 and 2024, with acquisitions making up a significant portion.

This wave of acquisitions marks a strategic shift: rather than building new brands from the ground up, traditional retail giants are choosing to buy innovation, agility, and access to new-age consumers. The result is a win-win situation for both sides of the equation.

WHY ARE BIG BUSINESS HOUSES ACQUIRING FASHION STARTUPS

1. Born Digital, Built for Speed: Most fashion startups launched in the 2010s were built with a digital-first approach. They understand online consumer behavior, social commerce, influencer marketing, and fast fashion trends better than many traditional players. By acquiring these businesses, large conglomerates can leapfrog years of digital learning and quickly gain a foothold in the fast-growing e-commerce space.

2 Access to Niche, High-Growth Markets: Startups like Zivame and Clovia disrupted the lingerie and intimate wear segment by offering stylish, size-inclusive, and discreet options in a market previously underserved by large brands. Similarly, Jaypore positioned itself as a premium ethnic wear label with an artisanal, handcrafted ethos. These acquisitions allow conglomerates to diversify their brand portfolio and cater to new and emerging customer segments.

3. Strong Brand Identity and Consumer Loyalty:

Many of these startups have cultivated loyal customer bases through unique brand voices, curated collections, and personalized experiences. For established business houses, acquiring these brands is not just about product expansion—it's about inheriting trust, credibility, and community.

4. Innovation and Agility