NEW DELHI: Italian fashion brand Alcott that had inked a franchise agreement with DLF Brands to enter India in 2008, is mulling to convert their partnership into a joint venture.
"We are happy with the brand's (Alcott) performance in India and wish to grow here. Currently, we are talking to DLF to set up a joint venture in the country," Alcott Founder Salvatore Colella told PTI.
He said the plan is to convert their franchise agreement into a JV , wherein DLF will have the majority shareholding and Alcott will be the minority partner. Indian law allows only 51 per cent FDI in single brand retail.
"In Italy, all operations are company managed and in rest of the countries we have franchise run operations. Given the potential for growth in the Indian market, we wish to have a joint venture here," Colella said.
Alcott brand was born in Italy in 1990 and has presence in over 12 countries. It focuses on casual fashion targetting youth.
The brand entered India with DLF Brands in December 2008 and currently has 12 standalone stores and three shop-in- shops here.
"We intend to open 10 stores every year here. By the end of this year, we will have 20 stores in India," Colella said.
The firm currently imports merchandise from Dubai. However, it plans to start local sourcing not only for the Indian market but also to export to other countries.
"By next year we have plans to start sourcing products locally from India not only for the stores here, but also for those located outside India, especially cotton products," he added.
Alcott's global annual turnover is currently estimated at 200 million Euro, with Italy alone contributing 50 per cent.
"In the next 5-6 years, we expect to have a turnover of 50-60 million Euro in India," he said.
DLF Brands, a part of real estate giant DLF Ltd has several brands in its portfolio, including Mothercare, Sunglass Hut, Boggi Milano and DKNY.
Source:ET,20 FEB, 2011, 11.15AM IST,PTI
Tags:alcott, alcott franchise, DLF Brands, salvatore colella, casual fashion franchise, mothercare franchise, sunglass hut franchise, boggi milano franchise, dkny franchise,
This Blog/Information/News Item/Press Release has been posted by Sparkleminds, A Franchise Consulting Company Based at India, Offering Complete Franchise Solutions Nationally and Internationally for more than a decade now.We help retail brands franchise and retail businesses expand to various geographies across the globe through our franchise development and franchise recruitment modules.If you are an entrepreneur seeking a international retail franchise we can help you evaluate and start a new franchise.Visit www.sparkleminds.com for more details on how you can either expand your existing business through franchising or start a new business.
1 comment:
Once, you have decided that opening up your own franchise is a wise decision, you will need to decide what type of franchise you wish to open. There are many different profitable franchise opportunities available for expansion. Well, some companies are starting out with franchising their already successful business, others have been on the franchise market for many years and have established themselves as a successful model.
franchising business philippines
Post a Comment