The joint venture aims to ramp up the operations, creating a national footprint to capture the potential of the Indian luxury market. In the five-year period 2010-2015, this will mean more than 10 stores across six to seven cites, starting with the single-brand boutique to be opened in Hyderabad in October 2010. At the end of 2015 India could potentially be the largest market in South and South-East Asia for Ermenegildo Zegna, driven by strong growth.
The Mumbai-based company, Zegna South Asia Private Ltd. operational since 2006, will be reorganised as a joint venture between Ermenegildo Zegna Group (51 percent) and Reliance Brands Ltd. (49 percent).
Ermenegildo Zegna Group has been active in India since 2003 and was one of the first global luxury brands to get FDI approval for mono-brand retail following liberalisation by the Indian Government. The first directly managed store was opened in Mumbai in 2007, followed in mid-2008 by openings in Bangalore and New Delhi. The Indian operation has seen significant double-digit growth since its inception.
“Strategically India is one of the markets with the highest growth potential and we are used to being the frontrunners in emerging new markets, as is shown by our 100-year history. Our consolidated experience in retailing luxury clothing, rooted in an industrial tradition based on the twin strategies of quality and innovation, coupled with Reliance Brand’s presence in and in-depth knowledge of the Indian market are the best guarantees for the success of this joint venture in building a long-term relationship with India’s sophisticated consumer base,” said Ermenegildo Zegna, CEO of the eponymous group.
“Zegna is one of the most coveted brands in men’s luxury, and it is a matter of prestige and excitement for Reliance to partner with them in India. Given the rising aspirations and influence of western luxury on the Indian consumer, this partnership is well timed. All the more so, since it comes in the centennial year of Zegna’s launch”, said Darshan Mehta, President and CEO of Reliance Brands.
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