Moet Hennessy-Louis Vuitton (LVMH) is aggressively pursuing its agenda of becoming the first and most successful luxury company in the not-so-favourable Indian market. For while the potential for luxury here is huge, a host of hurdles have prevented others from entering where LVMH has already tread.
Currently, LVMH is in advanced negotiations with Genesis Colours (does the label Satya Paul ring a bell?) to bring it's luxury apparel and perfume brand Kenzo to India. Interestingly, the brand is expected to make its foray under a franchising arrangement and not foreign direct investment (government norms permit only 51% FDI in single-brand retail).
Sources at Genesis Colours confirm the talks with LVMH, saying, "Real estate is the main stumbling block right now. We want to begin rolling out large format stores out of Mumbai and New Delhi, but it is turning out to be too expensive."
Retail expansion
Meanwhile, LVMH (India) is also looking at expanding the luxury retail environment here, says group director Ravi Thakran. "We are very serious about enlarging this environment to luxury malls. DFS is our international retail concept under which we take entire malls and have done so in Hong Kong and Singapore. The sizes of these malls range from 1-2.5 lakh square feet and have 30-50 boutiques and separate floors for perfume, jewellery and watches," says Thakran.
Apparently, DLF, Reliance Retail, Reliance Anil Dhirubhai Ambani Group and the Future group are in talks with LVMH for partnership in the DFS concept.
Source: rediff.com
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