Tommy Hilfiger yet again seeks approval to open own stores in India

The company withdrew an earlier petition with the Department of Industrial Policy & Promotion (DIPP) last year as the proposal was stuck for more than three years due to some regulatory issue.
Tommy Hilfiger

American multinational fashion & apparel conglomerate Tommy Hilfiger has once again filed an application to the Indian government to open its company owned stores in India. The company withdrew an earlier petition with the Department of Industrial Policy & Promotion (DIPP) last year as the proposal was stuck for more than three years due to some regulatory issue.
The American retailer along with the Ahmedabad-based Arvind Limited formed a 50:50 joint venture and applied to DIPP for a single-brand retail license in June 2012 seeking approval to add 500 points of sale in 5 years. The application included its own shops, franchisee run stores and shop-in-shops.
Government allowed single-brand retailers to run 100% subsidiaries in Indian in January, 2012 but for foreign countries investing though this route were asked to operate only through their own stores and couldn’t franchise or do wholesale trading.
This meant investment proposals got held up. These included plans by Tommy Hilfiger, Italian bag and shoe maker Furla, crystal jewellery and accessories maker Swarovski and cosmetics companies Innisfree of South Korea and Officina Farmaceutica of Italy were.
The single-brand policy was overhauled in November to allow wholesale trading, which is needed for sales through franchisees, and retail trading as long as it follows norms for both segments.
Taking the advantage of the changed policy Tommy Hilfiger will now focus on having a combination of company-owned and franchisee-operated stores.

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