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Tuesday, 16 August 2011 |
Madura Fashion and Lifestyle is renegotiating its
seven-year licensing and distribution deal with global fashion brand Esprit. Due to mounting losses, Esprit flagships in Bangalore, Mumbai and Delhi will be shut down and converted to outlets of other Madura brands like Louis Philippe, Van Heusen or Allen Solly. The plan is to take Esprit into malls and Tier II towns, broaden its portfolio and operate multiple formats at a time when a slew of international fast fashion brands like Zara, Forever 21 and Vero Moda have entered the Indian consumer market.
Esprit, an international, youth-focused lifestyle brand, entered the Indian retail market in October 2005. It was also one of the first international brands to launch a highly successful loyalty program in India with an exciting array of exclusive benefits. Madura and Esprit Holdings had earlier tried to convert their partnership into a JV but Esprit’s global troubles and management changes have delayed the process for nearly two years now. Founded in 1968, Esprit operates more than 800 directly managed retail stores worldwide and has a presence in more than 40 countries. Besides, there has been a talk that by December, Madura, along with Esprit’s German management, is looking to jointly announce an ambitious 10 year business plan.
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