Burberry Group, the iconic UK-based luxury retailer, is on the verge of ending its tie-up with the UAE-based Jashanmal Group in India and is instead looking to rope in Indian retailers for a possible tie up, a person close to the development said.
Burberry, an over 150-year-old retailer, has three stores in the country at Delhi and Bangalore. It had set up its first store in September 2008. Burberry is looking for a new partner for faster roll-outs in the country and, with a new arrangement, Burberry plans to open 20-30 stores across the country in the next couple of years, sources said.
They added that Burberry has met Delhi-based Genesis Colors for a possible tie up and held meetings with property consultants for selecting possible locations for its expansion plans.
In an emailed reply, an executive from Burberry’s corporate communications team said the company does not want to comment on its India plans at the moment. When contacted, Genesis Colors MD Sanjay Kapoor denied that his company has held talks with Burberry. An email sent to Jashanmal’s India office did not elicit any response.
The increased focus of the Burberry group on emerging markets like India stems from the fact that, in 2008-09, Burberry achieved 50 per cent of its growth from emerging markets such as the West Asia, China and India. Emerging markets contribute 9 per cent of its sales, up from 6 per cent in 2007-08, the company said in its annual report.
Burberry has shown interest in Genesis Colors, the parent of designer labels such as Satya Paul, Deepika Gehani and Samsaara, as the latter moved swiftly in luxury space at a time when others like Murjanis exited the luxury business.
Source: Business Standard