Italian luxury menswear group Canali is planning to make greater inroads into India. The luxury brand has tied up with Genesis Luxury Fashion, forming a 51:49 joint venture ahead of its journey into India. Genesis Luxury Fashion currently holds the Indian distribution rights of luxury products from the house of Canali.
In the coming years, luxury industry watchers will be looking forward to a Rs 7.65 crore investment in India from this newly formed joint venture company. The company will now become the exclusive retailer for Canali products in India. All this should begin soon; Canali has already received clearance from the Foreign Investment Promotion Board in India. Interestingly, Canali will now hold the distinction of being the first luxury brand to invest in India after the Indian government gave a go-ahead to 100 percent foreign direct investment (FDI) in single brand retailing.
Canali’s motivations for investing in the emerging nation are quite simple. As Stefano Canali, GM and the third generation Canali in the business, put it, “India is a market with a remarkable potential still to be exploited.” The company is now getting ready to take the Indian luxury menswear market by storm. The joint venture will be opening 10 to 15 stores over the next three or four years.
Currently, Canali retails in India through five exclusive stores. Genesis Luxury Fashion takes care of its marketing and distribution divisions. The two companies have been doing business together for more than four years. In fact, Genesis has been running five Canali stores across India for some time now.
Via: The Economic Times