DLF Ltd., India`s paramount real estate company, is geared to introduce a bevvy of international luxury brands to India
DLF Ltd., India`s paramount real estate company, is geared to introduce a bevvy of international luxury brands to India through its retail subsidiary ,DLF Brands. The first label in the luxury segment that the company brought into the country was Armani, followed by a tie-up with Salvatore Ferragamo .It is now primed to bring in 15 more international brands to India by 2013. DLF intends to pump over Rs 400 crore into this expansionary endeavour. It will concentrate solely on the metropolitan and tier-I cities during the first phase of expansion ,in order to establish a good logistic supply chain for each brand. The 2nd phase will include brand launches across tier-II cities as well. The company disclosed five premium international brands in India on Thursday, comprising of Italian men’s wear brand, Boggi; apparel and accessories brand , Alcott; luggage brand, Piquadro; home fashion line, Sia and luxury eyewear brand ,Sunglass Hut. According to Timmy Sarna, Vice-Chairman, DLF Brands, the company intends to bring in international brands at lower price points than their home markets to romance the Indian customers. “The perception of the Indian consumer is that the international brands do not bring in their full range and that the products are more expensive here,” he said.It is this myth that DLF Brands seeks to rupture. DLF Brands is embracing a route akin to the one it took with with Armani and Ferragamo in India,by acceding to a joint venture with Boggi and Piquadro, while preferring sole franchising partnerships for the other brands. Currently ,the realty firm is looking only at sole franchising partnerships and means to woo the upper and mid market segment with these brands . DLF Brands has recently entered men’s wear, women’s wear, and luxury and premium lifestyle fashion segments. It also intends to essay children’s wear in the near future.The company proposes to launch a minimum of 75 outlets for Sunglass Hut ,40 stores ,pan –India for Alcott, 20 for Piquadro and 20-30 boutiques for Sia Home Fashion over a period of 5 years. For Boggi,it plans to set up 20 mono brand shops within the next 3 years. DLF Brands Managing Director, Mr Kelvin Coyle, revealed that the company would be opening 40-50 showrooms across India by 2009. "We plan to develop at least 600 stores by 2013". When questioned about the outgoings involved, he said, "We would be investing around Rs 2,000-2,500 for each sq ft of retail space and the total retail space would be of 2.5 lakh sq ft". Mr Coyle acknowledged that DLF Brands aspires to attain a sales volume of one-billion dollar in the Indian market within the next five years. "We are eyeing 12-15 per cent growth by the end of this fiscal," he volunteered ,adding that the international brands could moot India as a potential sourcing base as well .