Fashion brand Tommy Hilfiger is hungry for more in India, where its retail turnover is a modest Rs 200 crore. But the buyout of the Murjani group's stake in its India business signals the brand's intention to grow fast. It has “ambitious” plans for India — one of the “strongest” retail markets in the world today, said Mr Fred Gehring, CEO of Tommy Hilfiger Group, in an e-mail interview to Business Line . More from Mr Gehring, who is slated to visit India next week…

Why is Tommy Hilfiger ending ties with the Murjani group, which launched the brand in India?

This is in line with similar actions the group has taken in other international markets to support its strategy of consolidating brand management and approaching markets in a more coordinated manner. It gives us the opportunity to better align the local business with the master brand. We are hopeful that with direct involvement with the sub-licensees and greater oversight, we can improve the quality and assortment of the products offered.

How has the group fared in India since launching in 2004?

Our business in India has grown by around 50 per cent every year for the last few years. In a brand awareness survey conducted last year, Tommy Hilfiger was judged the second-most visible brand among both global and local premier brands in India. The new agreement will enable us to make additional investments to strengthen our brand.

Tommy Hilfiger is continuing its association with Arvind. What synergies do you expect from Arvind?

One of the most appealing aspects of our enhanced partnership with Arvind is the strength of their local knowledge and the diversity of their manufacturing portfolio. As a global brand, we have a diverse manufacturing base. Arvind is a leader in Indian manufacturing and we look forward to leveraging that strength.

What does all this mean for Indian consumers?

Having direct control of the brand will enable us to strengthen Tommy Hilfiger's positioning and ensure consistency with the master brand's positioning in other leading markets. We hope to grow the categories currently represented in India, better align the sub-licences with the master brand and provide additional funding for retail development

What kind of expansion will the Indian market see?

Currently there are 90 Tommy Hilfiger stores (42 exclusive) across major Indian cities, including tier-two and -three cities. We have an ambitious plan in place to increase our store count across key cities in India over the next few years.

How much will you invest here?

Any investment will depend on business needs. We are very committed to the Indian market and look forward to developing the brand in what we believe to be one of the strongest retail markets in the world.

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