Zivame converting to single brand retail for FDI benefit?


In 2015, the Indian government loosened the FDI policy for single-brand etailers with foreign funding. The amendment to the policy now allows single brands backed by foreign investors to sell their products online. This has allowed many to expand their online retail approach.

Zivame, the online lingerie retailer, reached out to the government to turn its retail venture into one that focuses solely on a single brand. This it plans to do to benefit from the policy introduced in 2015, as mentioned above. The retailer’s parent company, Actoserba Active Wholesale, applied to the Department of Industrial Policy and Promotions (DIPP) for:

  • Expansion of existing facilities
  • Conversion of wholesale retail activities

According to the DIPP website, Actoserba Active Wholesale is doing this “to undertake single brand retail trading of Zivame branded products, including (through) ecommerce.”

Others single brand sellers in ecommerce

Benetton, the Italian fashion brand, has also applied to change to the single brand model and start its own ecommerce. The company’s chief executive in India, Sundeep Chugh said that the company is looking to create an omnichannel experience for customers in India this way.

Zivame carries out its omnichannel strategy through multiple fit studios it has setup across the country. The retailer has also added specialised Zivame Studios offering unique features. Could, a single brand approach help the etailer ensure the success of its omnichannel strategy?

Another etailer that moved to the single brand structure was Urban Ladder. The online furniture marketplace plans to stock and sell its products under its brand. The merchants on its platform will be converted from online sellers into contract manufacturers to allow this.

Others looking at changing to the single brand business are Yepme and FabAlly.

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