Economic downturn or no economic downturn, India is not going to see any cut in the entry of international brands in the country. Come October 2009 and we will see Oviesee – a leading player in the Italian clothing industry setting up stores in the country.
The brand is entering India in a joint venture with Brandhouse Retails Ltd (BHRL). The total equity investment in the JV will be Rs 1.61 billion over the next five years for setting up around 190 stores across metros, tier I and II cities.
In terms of agreement, Brandhouse will hold 62.5 per cent of the total equity while the remaining 37.5 per cent of the equity will be in the hands of Oviesee. This brand would address young India and provide affordable ‘fast fashion’ for men, women and kids.
The JV will, for the first year, import the merchandise from Italy and thereafter will introduce local sourcing and manufacturing in a phased manner. The pricing will be in the mid-premium range with an aim to make it an affordable clothing. In terms of stores, the company has no plans to go the franchisee route and all stores would be 8000 square feet onwards. Initially the company will open stores in Mumbai, Delhi and Bengaluru.
— Zainab Morbiwala, Mumbai Bureau