Having tested the waters in India, lifestyle brand Tommy Hilfiger is ready for greater control and direct involvement.
Tommy Hilfiger Group has bought out the Murjani group's licence for Tommy Hilfiger trademarks in India; it has also acquired Murjani's 50 per cent interest in the Arvind Murjani Brands (AMB) joint venture. Since 2004, Arvind Murjani Brands (a joint venture between Arvind Ltd and the Murjani Group) has been the apparel sub-licensee of the Tommy Hilfiger brand in India.
“Having direct control will strengthen Hilfiger's positioning and ensure its consistency with the master brand's positioning in other leading markets. We will grow categories represented in India, better align sub-licences with master brand and provide additional funding for retail development,” said Mr Fred Gehring, CEO of Tommy Hilfiger group.
The reconfigured joint venture will be a 50-50 partnership between Arvind and Tommy.
Currently, Tommy Hilfiger is present in 90 stores (42 exclusive ) across India, including tier 2 and 3 cities. “We plan to increase store count across key cities in India over the next few years,” said the Tommy Hilfiger spokesperson.
According to Mr Sharad Mehra, Senior VP, Technopak Advisors, there will now be greater brand visibility, customer connect and product variety.
Currently, most of Tommy in India is imported. The brand can now leverage Arvind's supply chain better. “With local sourcing going up, duty impact could come down, leading to lower production costs,” explains Mr Mehra. This may not impact retail prices. “Tommy shirt prices start at Rs 1500. Lowering prices may hurt the brand.”
Mr Mohan Murjani, Chairman, Murjani Group, had partnered with Mr Tommy Hilfiger in 1985 to launch the American designer's brand in the US. The brand was launched in India in 2004 by Mr Murjani, who sub-licensed apparel, footwear and handbags to AMB. Other product categories were sub-licensed to other Indian companies.