Retail News CRM

Tag: DLF Brands

  • Zara, Gap, Body Shop slash Indian retail prices

    Zara, Gap, Body Shop slash Indian retail prices

    Global brands like Gap, The Body Shop and Zara are slashing Indian retail prices to stay competitive in the heavily price-sensitive market.

    UK cosmetic brand The Body Shop slashed prices across categories in India by 20 to 30 per cent last week, and US fashion brand Gap is looking to have up to 40 per cent of its products made locally, which should allow prices to drop by 10 to 15 per cent.

    “The process has started,” says CEO J Suresh of Gap’s India franchisee Arvind Lifestyle Brands. The Indian-made items will be introduced next year.

    The Body Shop India COO Shriti Malhotra says its price cuts will make its products more accessible.

    Spanish fast-fashion brand Zara is also looking at slashing its prices to bring them closer to Swedish rival H&M.

    It quotes experts as saying price cutting is one of the most effective ways to boost sales and market share in India, particularly in highly competitive and fast-growing segments.

    “Most brands strategically lower prices for the value-conscious Indian consumer,” says CEO Devangshu Dutta of retail consultancy firm Third Eyesight.

    Inditex-owned fashion brand Zara reduced prices by up 15 per cent when H&M entered the Indian market in October 2015 with its global strategy of aggressive pricing. The move helped Zara record 17 per cent sales growth last year.

    When Arvind Lifestyle Brands took over the business of beauty and wellness retailer Sephora from former franchisee DLF Brands in September 2015, its first move was price correction. “We looked at pricing in Dubai and Singapore and kept it in the band of 5 to 10 per cent lower than that,” says Sephora India CEO Vivek Bali.

  • Future of DKNY India in doubt

    Future of DKNY India in doubt

    DKNY India may quit the market after failing to generate sustainable profits.

    While mall executives and DKNY store managers have confirmed the exit, India franchisee DLF Brands has denied the US fashion brand is completely leaving the country, says the Economic Times.

    DLF Brands head Timmy Sarna says the company has closed “a few” stores but will continue to run four outlets, all in DLF-owned malls in the National Capital Region.

    He says two loss-making stores have been closed, one in Kolkata and the other in Mumbai.
    However, Fashion Network says sources have told it that the DKNY outlet in DLF’s Mall of India in Noida is closing.

    It quotes another source as saying the outlet in DLF Place Mall in Saket is closing next month.

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  • DLF Brands quits luxury sector

    DLF Brands quits luxury sector

    India’s DLF Brands, which runs high-street fashion brands mall Emporio in Delhi, is quitting the luxury business.

    It has just shut down two of the seven stores of US fashion brand DKNY after parting ways earlier with such brands such as Giorgio Armani, Mango, Salvatore Ferragamo and Sephora.

    “We don’t have any plans to open more DKNY stores,” says DLG Brands MD Timmy Sarna. “And we don’t want to be in the high-fashion business. It’s difficult to scale up that business because there aren’t too many locations in the country where you can sell luxury.”

    Instead, DLF Brands, the retail arm of real-estate company DLF, wants to focus on mass brands. “We have profitable businesses in Kiko, Mothercare and Sunglass Hut,” says Sarna.

    DLF Brands has bought the franchise rights of UK-based Mothercare for 15 years, and plans to launch smaller stores, even in community-based markets, selling value-added products.

    “From 109 stores at present, we want to increase the number to 300. A major part of production is happening here now, so prices will eventually come down,” Sarna says. “Apart from this, our other brands such as Sunglass Hut, Claire’s and make-up brand Kiko are doing extremely well and are profitable.”

    DLF Brands started its exit from the luxury market in 2012, quitting its joint ventures with Ferragamo and Giorgio Armani. In 2014, it shut down stores of Italian menswear brand Boggi Milano, then last year parted with LVMH’s make-up and skincare brand Sephora, which was taken over by Arvind Lifestyle Brands.

    “You can either be in the fashion business or in the mass-brand business. You cannot have your finger in too many pies,” says Sarna.

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