Post deal, Tommy Hilfiger plans big for India

Monday, 26 September 2011
Post deal, Tommy Hilfiger plans big for IndiaTommy Hilfiger, the wholly owned by PVH Corp has been grabbing headlines in India of late for having acquired Murjani Group’s direct interest in the Tommy Hilfiger business in India. The transaction includes the buyout of the Murjani Group’s license for the Tommy Hilfiger trademarks in India and the acquisition of its 50 per cent interest in Arvind Murjani Brands (AMB). AMB has been the apparel sub licensee of the Tommy Hilfiger brand since its introduction in the Indian market. Arvind is the other partner in AMB. The reconfigured joint venture will continue its existing businesses, as well as take on the management of the other sub licensees in India. This move establishes the Tommy Hilfiger Group’s direct interest in India and builds upon a pre-existing partnership with Arvind, a seasoned leader in the Indian apparel business. Fred Gehering, chief executive officer of the Tommy Hilfiger Group says, “The new agreement is in line with similar actions that the Tommy Hilfiger Group has taken in other international markets, in support of its strategy of consolidating brand management and approaching markets in a more coordinated manner.”

Post deal, Tommy Hilfiger plans big for IndiaOne of the most successful players in the premium apparel sector in India, Tommy Hilfiger’s business in India has grown by around 50 per cent year on year. And Gehering is optimistic the new agreement will strengthen the brand further. He says, “In the next two years, we will be investing in the growth of the children’s wear market, where we see great potential.” He believes the market sentiment and talk about a second wave of slowdown seems to have not affected the Indian consumer sentiment so far. “We believe that emerging markets like India have many positive factors that should bypass a slowdown in consumer demand. Further, our positioning is firmly in the premium -- not luxury -- sector, which has been less impacted by the financial downturn of the past several years.”

Tommy Hilfiger’s now believes that direct involvement in the Indian market will help them leverage our capabilities in merchandising, store design, sourcing, etc. And the Indian consumer will benefit from the increased synergies. “We have an ambitious retail store roll out planned for Tier-I and II cities over the next few years. The retail real estate landscape in India is somewhat challenging, with many international brands vying for a fixed number of locations. However, we are focused on securing leases in the most upscale, highly trafficked locations in the most important cities across India.” He says the deal will enable them to add efficiencies, better align the sub-licenses with the master brand and provide additional funding for retail development. “We will continue to offer the Indian consumer the full Tommy Hilfiger lifestyle, while looking at future opportunities for retail growth. Currently, there are 80 Tommy Hilfiger stores across major Indian cities, including several in Tier-II, II cities.”

Related News