INDIA BUSINESS WORLD - JUNE 1st - JUNE 30th - 2008
RELIANCE BRANDS IN 50:50 JV WITH PAUL & SHARK
ITALY’s luxury sportswear brand Paul & Shark has struck an equal joint venture with Reliance Brands to open doors in India. The $600-million family run fashion business will apply to FIPB for FDI under single brand retailing.
“We hope to have 15-20 stores in about five years, beginning with doors in luxury malls and subsequently in luxury neighbourhoods as they evolve,” Paul & Shark owner & CEO Andrea Dini said. Globally, Paul & Shark is benchmarked with Hugo Boss and Zegna in the lifestyle sportswear segment, he added.
The 50:50 JV, Reliance Paul & Shark Fashions Pvt Ltd, is expected to open the first store by March 2009. “In terms of customer evolution for luxury goods, markets like Mumbai, Bangalore, Delhi, Chandigarh and Hyderabad have all arrived. While we may begin with the Mumbai-Delhi circuit as usual, there is a possibility of changing that order and looking for the first store in the three other cities if real estate comes along,” said Reliance Brands chief executive Darshan Mehta.
Paul & Shark operates a retail network of around 400 outlets, including about 200 standalone stores, which are mostly in the European markets. Paul & Shark pricing in India will be comparable to Dubai market where it operates four stores currently.
A woven Paul & Shark shirt may be priced between Rs 9000 and Rs 12,000 while knits will be between Rs 5000 and Rs 12,000, outerwear between Rs 24,000 and Rs 35,000 and accessories, including shoeline, hats and scarves, priced in the Rs 4,000-10,000 bracket. At the projected pricing, Paul & Shark will be one of the few international luxury brands to take its domestic retailing beyond boutiques in five-star hotels.
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