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Sep, 10 2010


HAVING been the first international lifestyle brand in India, Tommy Hilfiger is now gearing up to an explosive opportunity.

HAVING been the first international lifestyle brand in India, Tommy Hilfiger is now gearing up to an explosive opportunity.

Being the leading super premium designer lifestyle brand in India, Tommy Hilfiger is the only important brand to offer a complete range of products from apparel to watches, eyewear, underwear, fragrances and more.

Power of the brand - In barely six years, with it's offering of high-quality apparel and accessory products, Tommy Hilfiger has expanded to over 1,000 points of sale, covering 98 cities, throughout India.

Tommy Hilfiger Accessories (THA), offering international design options, has been the perfect entry point for new customers into the brand, given their attractive price points. Tommy Hilfiger will be the first international lifestyle designer brand to introduce the concept of exclusive accessory stores in India. For the first time, consumers will be able to see the full range of Tommy Hilfiger Accessories in a beautiful Tommy Hilfiger space.

First flight to India

The red, white and blue logo has become synonymous with the most recognised lifestyle symbols. Tommy Hilfiger, the super premium American designer brand 'for the young and the young at heart', was launched in India in 2004. Launched by the Murjani Group, with 80 years of proven track record, is the only Indian group in the world to have developed, launched and built major international designer lifestyle brands, including Gloria Vanderbilt. As per Mohan Murjani, “Building brands is not just our strength, it's our passion.”

Proliferating portfolio

To satisfy the growing needs of consumers in India, Tommy Hilfigr has continued to widen its product portfolio and points of sale. However, according to Murjani, “The Indian retail market is still at a nascent stage, with limited suitable quality retail destinations.”

Well priced designer accessories are often linked to impulse purchase and to fill this gap, the brand is launching exclusive accessory outlets at multiple locations pan India. Soon, Indian consumers will have access to exclusive accessory stores, where they will have a wide array of products to choose from. The swanky franchised stores of Tommy Hilfiger will have under its belt eyewear, watches, belts, small leather goods (wallets), fragrances, deodorants, mobile phones, underwear, writing instruments, travel gear and more.

Tommy Hilfiger Accessories - To provide its consumers with the best designs and quality, novel products are created as per international trends after a thorough study by Tommy Hilfiger and sourced from its authorised factories across the globe, conforming to the brand's stringent quality standards.

Franchising, the way forward

Tommy Hilfiger apparel and accessories are already selling extremely well throughout India at multiple locations. The chance to have an exclusive Tommy Hilfiger store, whose products already have a high brand recall, as well as high sales performance, is “a unique proposition”. Taking up a Tommy Hilfiger franchise is a lucrative option for the franchisees, as the brand offers premium products, at competitive price points.

Affirms Rahul Gambhir, “The franchise business model is highly scalable and profitable for both parties, as both focus on their core strengths. Our current franchise stores have been extremely successful in delivering superior value to both partners.” The brand believes that store operations of its accessory store franchisees will be cash positive in the first year itself and yield a healthy RoI from the second year onwards.

Tommy Hilfiger  accessories stores

The brand is planning aggressive expansion. Tommy Hilfiger plans to have around 500 accessory stores,  including, stores, kiosks in atriums of mall, airports, etc. The accessories stores will make the brand more accessible to customers. At present, it is mulling over making a mark in all major cities and mini-metros, in addition to tier I and II towns.

Expanding countrywide

Over the next three to five years, Tommy Hilfiger will continue to build on its leadership position of being the number one premium brand in India, with over 2,000 points of sale throughout India.

Nuts and bolts for investor

First and foremost, a potential franchisee must have an excellent track reord and be a party of repute. In addition to having access to a high footfall location, he will be required to pay a franchise fee, invest in store fit outs and inventory. All store running costs (rentals, electricity, staffing, etc.) will be borne by the franchisee. The brand will provide its franchisees a credit period for merchandise payments to enable the franchisee sell his stock before he pays his invoices and ensure cash flows.

The franchisee has to be responsible for the day-to-day running of the store. For the THA franchise stores, the franchisee will need a space of 300 to 400 sq.ft., in a high footfall area, preferably in malls or high streets. The brand has its gates open for SIS locations, kiosks and/or island units in mall atriums, good department stores and airports.

Perfect platform  for franchisees

The legendary brand is famous for providing best services and quality to its customers and to franchisees alike. Franchisees get the best training facilities and post sign-up, they get total support from the company for smooth running of the store, both pre and post-opening.

This includes providing vendors for store fit outs at already negotiated rates, assistance in staff recruitment, selection and training of staff for product and customer service on an ongoing basis. The company will provide support to all the franchisees from the moment they sign up with Tommy Hilfiger. Every season, the company will ensure that their franchisees and staff receive training regarding specific product to help them understand and better sell their novel products.

With Tommy Hilfiger as a brand in tow, the growth prospects for a potential franchisee are tremendous. Tommy Hilfiger ensures that whether the store is located in Patna or Mumbai, it is successful as per its consumer's demands across India. If the store runs well, the franchisee also gets the option of opening more stores with the company. The brand also offers potential franchisees a lucrative option of opening more than one store.

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