How many fashion designers attract investments?
One of the things that we haven’t seen in India’s designer fashion business is the investments.
And when I say investments, I mean in flow of money into their business that can take their business far and beyond to other countries thus Indian designer brands shining as much as that of their western counterparts from the US and Europe and some from Japan.
But now I hear that it’s about to change… at least with some of our fashion designers. In the next few weeks you will hear about a massive investment by an US firm into one of our most successful designer brands.
This is so huge that it is sure to take this brand to foreign shores successfully and knowing this designer brand’s business background, I have no doubt that it will further its presence as successfully there as it has in India over the last several years.
This happened because this particular designer brand had their account books maintained in the manner it should be and its career graph has been on the upward side.
One of the reasons why foreign investors wanting to put in the kind of money that is required to take our brands to the global platform is that only a handful of our fashion designers have their books kept in order. Without the books the investor cannot ascertain the success of these business and thus cannot invest.
What mostly happen here is that all expensive sales are kept out of these books and while the designer gets richer personally his/her business takes a beating when it comes to attracting funds from investors.
Under the table dealings happens when clients insist on paying in cash (their unaccounted money) and the designer not wanting to lose business accepting the same.
I must confess that I hear such practises happen even as I don’t have any proof of the same but when these brands that are decades old do not attract investments I always wondered why and concluded that lack of proper books has to be the cause.
A few months back a French investment arm of a big luxury conglomerate scouted around I was told that they didn’t find any brands worth investing in here. There could be others too like this.
But with the news of this US firm coming forward to join hands with brand, I think our fashion industry can get encouraged to try and attract these investors to their side.
And for this, perhaps they can keep their books in proper form!