Burberry sets up JV in India
19 Nov 2009
British luxury goods retailer Burberry is looking to pick-51 per cent in a fresh joint venture with Genesis Colors that owns designer labels such as Satya Paul, to open Burberry stores in India. The JV will open stores in both large and small towns beyond tier I and II cities in the country.
Burberry already has a couple of stores in India at Mumbai and Bangalore, which are likely to become part of the new venture.
Genesis also owns luxury fashion labels Satya Paul, Deepika Gehani, Shobhaa De and Bwitch!
Both Genesis and Burberry are likely to bring in around Rs 16.5 crore each for the stake.
Burberry, a 153-year-old firm that sells apparels besides accessories such as perfumes, eyewear and watches, already has a franchisee agreement with Mumbai-based Media Star that is into marketing and distribution of international newspapers and magazines.
Meanwhile in London, Burberry announced its plans to expand the number of franchised stores to 100 in China in the next few years.
In a press conference held in London, Burberry's CEO Angela Ahrendts said the company would expand its investment in emerging markets, especially in China, because the country has a large potential purchasing power.
Burberry hopes to repeat in India its success in China where it's already operating 44 stores and enjoying double-digit growth in revenues.
The makers of the iconic trench coat said to have been invented by Thomas Burberry, the founder of the group - plans to sell formals and casuals for both men and women, sportswear, swimwear, lingerie, childrenswear, raincoats , hosieries and accessories such as bags, jewellery, sunglasses, watches and cosmetics.
The new headquarters in London and furniture in the staff canteen is designed by chief creative officer, Christopher Bailley, who is the Burberry design maestro.
