As India's appetite for premium fashion grows, a new venture founded by a former H&M India executive is betting there is room between fast fashion and luxury—and that global brands want a different route into the country.
Confluxe, launched by Louis Coucke and Rajesh Narkar in March, aims to bring international apparel labels to India through an asset-light model that handles sourcing, merchandising, marketing, technology and retail expansion while allowing brands to retain greater visibility over their business.
The company raised $1.6 million in pre-seed funding in March from Wavemaker Partners and Kriscore Capital. It is targeting a ₹500-1,000 crore business over the next three to five years by introducing international brands to the Indian market, Coucke told Mint.
The bet rests on consumers willing to pay more for quality, functionality and design without necessarily buying luxury labels. Confluxe launched its first brand last week, Brazilian premium menswear label Urban Performance, with products priced between ₹3,999 and ₹20,000.
"We've realized there is a huge demand for India. Since our funding announcement, the funnel of brands wanting to enter India has only increased," Coucke said.
Changing playbook
International brands have traditionally entered India through partners such as Arvind Fashions, Brandman Retail and large retail groups, while others including H&M, Uniqlo and Decathlon have invested directly in building their India operations. Confluxe is betting brands increasingly want a lower-risk alternative.
Its next launch, scheduled for September, will be a US-based premium denim brand that is part of a global apparel group generating more than $30 billion in annual revenue. Coucke declined to name the company. Unlike Urban Performance, whose products are imported, the denim brand's first India collection will be manufactured locally under licence before launch.
“Some brands have global equity that consumers already recognize. Others are lesser known but have products we believe can create a market in India,” he said.
The company plans to target both established global brands and emerging labels with differentiated products aimed at India's increasingly affluent consumers.
“The biggest opportunity lies among the country's top 120 million consumers, although younger aspirational shoppers are expected to drive demand for some categories over time. There is still enormous appetite among international labels to enter India, and we believe the opportunity is only getting bigger,” he said.
While Confluxe is in talks with quick-commerce platforms, it is cautious about the channel's long-term role in fashion. “I'm not a big believer in fashion commerce. I think the economics will dry up at some point,” Coucke said.
He added that while premium apparel such as Urban Performance may not suit quick commerce, categories such as denim could benefit from faster deliveries, particularly when orders are fulfilled through retailers' store networks.
Premium bet
Mint reported in April that competitor Ace Turtle, which operates Lee, Wrangler and G-Star in India, is also moving away from the crowded value-denim segment towards premiumization. The company has sharpened its focus on fashion, sourcing and distribution, positioning G-Star as a bridge-to-luxury brand. Chief executive Nitin Chhabra had told Mint it was repositioning the business in the mid- to high-premium segment while expanding in tier-II and tier-III cities, avoiding excessive discounting and competing purely on price.
For Confluxe, the opportunity lies in India's premium apparel market rather than luxury.
“Premiumization in India starts much lower than in the West. That's where we see the traction,” Coucke said, adding that the company is focusing on brands priced above ₹3,500 across menswear, womenswear and outdoor categories.
The company expects its initial customer base to come from India's top 120 million consumers, with younger aspirational shoppers expanding the market over time.
Coucke said several international brands positioned between premium and luxury have struggled to scale in India because they ended up occupying an indistinct middle ground.
“For Urban Performance, for instance, it's about building the right community for the right consumer,” he said.
Future launches will sit slightly below the bridge-to-luxury segment and target consumers seeking differentiated products rather than logo-led luxury. Urban Performance positions itself between formalwear and athleisure, targeting professionals looking for clothing suitable for office meetings, travel and social engagements.
Coucke also said overseas brands are becoming more selective about how they enter India.
"There is fatigue with the existing ecosystem. Brands don't get enough first-party data, and when we work through marketplaces we often lose control over how the business is built."
The company plans to build brands online before expanding into shop-in-shop formats and exclusive stores.
“I've seen H&M open 400 stores in China and close 200 after two years. I want to avoid that. Online allows you to understand the consumer first,” he added.
While Confluxe expects each brand to generate about ₹100 crore in annual revenue within three years, Coucke said it will remain selective. "We invest in the brand, but we want the brands to invest as well. Every brand should be able to be at the cusp of ₹100 crore after year three. Otherwise, it's not worth it," he said.