Major Brands will scrap its franchise agreement with French women’s wear retailer Promod and
instead have a joint venture. Promod will hold a 51 per cent stake in the venture and Major Brands the rest. The agreement will set up 40 Promod stores in five years, with contributions from the region expected to account for 15 to 20 per cent of Promod’s global revenue. Right now India has nine Promod stores and contributes less than 3 per cent of the brand’s global revenue. The venture will also explore opportunities to raise sourcing from India for Promod’s global operations of more than 900 stores.
Promod was created in 1975 as a French family boutique dedicated to the sharp design, production and retailing of women's ready-to-wear and original accessories. With more than 30 years of experience in women's ready-to-wear retailing, Promod is one of France's biggest fashion chain and the brand enjoys huge international success with outlets in 49 countries.
Major Brands is the local franchisee for fashion apparel and accessories brands such as: Mango, Aldo, Charles & Keith and Nine West. It has 80 stores and a portfolio of 10 brands across women’s fashion, footwear, accessories and kids’ apparel. By 2015, the company plans to have 500 stores and revenues of Rs 1,000 crores. For fiscal 2011, the firm’s revenue grew 40 per cent to Rs 200 crores.
Meanwhile, Major Brands which launched its apparel brand Queue Up late last year is now planning to launch kidswear brand JFK later this year. On an average, the investment for a 1,500 sq. ft. store is Rs 80 lakh to Rs 1 crore. It may be noted that Mango one of the brands that Major Brands retails in India has appointed DLF as another franchisee, as it sees opportunity for growth in India. Interestingly, Mango, contributes close to 25 per cent of Major Brands’ revenue in India. It has tripled the number of stores and turnover in the past five years.