American Eagle is the latest insertion to Aditya Birla's international business division

YarnsandFibers News Bureau 2018-06-22 11:16:00 – Mumbai

Aditya Birla Fashion and Retail entered into a multi-store retail and e-commerce license agreement with American Eagle Outfitters Inc. in August 2017.

American Eagle is a $3.8-billion affordable premium denim and casual wear retailer from the US competing with brands such as Wrangler, Levis and Pepe. Aditya Birla Fashion and Retail Ltd is getting denim and casual wear American Eagle to India and expects the brand to be among the top three in this market in 5-7 years.

Formerly known as Madura Fashions, ABRL, retails several international brands such as Simon Carter, Ralph Lauren, Forever 21, Ted Baker, and Hackett London. American Eagle is the latest insertion to the company’s international business division, that was established about two years ago to capture the growing demand for international brands among Indian youth.

Andrew McLean, EVP-Global Commercial Operations, American Eagle Outfitters expresses that, “India’s rapidly developing and vibrant economy, anchored by the world’s largest youth population, provides an exciting growth opportunity for our brand to expand our global reach.”

ABFRL’s President for International Business Sathyajit Radhakrishnan, said that the plan is to open 25-30 standalone stores in the next 35 months across the top Indian metros. Besides, it plans to retail the merchandise through the brand’s exclusive website www.aeo.in and partner with all leading fashion online marketplaces such as Myntra and Amazon to reach the young population in the smaller cities. He quoted that, “We (ABRL) are optimistic that American Eagle will be the top three denim brands in the next 5-7 years. By then, we will also have a substantial market share in the denim market too,” Radhakrishnan said adding that the overall denim market (both branded and unbranded) is about Rs 9,000 crore approximately and is growing at a CAGR of 13-14 per cent.

He further added that India has the fastest growing youth market in the world with upwardly mobile consumers, who are driving demand for brands having international aesthetics and style. However, there seems to be a paucity of choices when it comes to jeans. With the entry of American Eagle, ABFRL aims to fulfil the gap and corner a significant share of the country’s premium jeans wear market.

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