With the addition of five new international brands to its portfolio, DLF Brands, subsidiary of real estate giant DLF Ltd, has launched itself as a player to look out for in the luxury and premium retail categories.
Unveiling the stores at its upcoming mall, DLF Place at a south Delhi location, managing director Kevin Coyle said that it would not promote itself even as an umbrella brand, but look towards a long-term presence in the sector. And despite the prevailing economic downturn, he stressed that plans for the brand?s expansion were on schedule.
?We aim to have a topline of $1 billion in five years,? said Coyle. Admitting that the growth in the sector would be slower than anticipated earlier, he however expressed confidence that what India was looking at was a slowdown, not a recession. ?Unlike the West, India is still a growing market and will register positive growth in the near future.? He also said that recovery would be much faster here.
DLF Brands, which has 11 stores currently, will add another five stores next month. The target is to reach about 50 points of sale by the end of next year, and about 600 in five years. ?Sunglass Hut alone would have about 75-100 points of sale, while Boggi will have about 30 points of sale.?
Vice chairman, DLF Brands, Timmy Sarna added that the company will bring 10 to 15 international brands to India within a year, saying talks with brands in sectors like women?s wear, kids wear, toys, accessories and fashion were already underway. DLF Retails plans to employ about 15,000 people in five years.
Coyle expressed confidence that they were a long-term player in the sector. ?No one will make money fast in retailing. We hope to be cash neutral in four to five years, while payback will be about six to seven years from now,? he said. He expects 10-15% growth in the sector this year.
DLF Brands, which already has joint ventures with luxury brands Armani and Salvatore Ferragamo, showcased the opening of five other brands – Boggi, Piquardo, She, Sunglass Hut and Alcott – it is bringing to India, two through the JV route, and three others as franchisees. It plans to address all the verticals in the space except food.