Is the luxury space looking up for Versace? That?s a tough one. Versace globally posted a loss of Euro 4,00,000 in the last financial year. In the last two months, the iconic Italian luxury brand has exited its hitherto major market, Japan. The launch for the store in Oberoi Mumbai, scheduled for December last year got postponed due to the terror attacks.
For India, however, not only does it have plans to expand, but it is even looking to expand its range and bring some of its sub-brands to the country. After the delayed launch of the store in Mumbai in summer this year, last month Versace, which entered India in 2006, opened its largest store in India, its third in the country at Delhi?s upscale Emporio Mall, the preferred destination for luxury brands. It also plans an airport store at Delhi?s new international airport, which will be the brand?s third store in the city. It is on the lookout for more locations across the country, with the next ones likely in Bangalore and Kolkata.
?We are looking for the right location and environment in leading Indian metros,? said Marc Duhm, Wholesale Director, First Line, Versace, who was in India for the launch of the store. Expressing satisfaction with the 4,000-sq ft store?s location, he is sure that being in proximity of other luxury brands will only help Versace. The VJC store is located one flight above the Versace store in the same mall.?
?India has potential as a major market for us,? said Duhm. ?Our brand is about sophisticated sexiness and glamour, and that is what we are projecting through this store as well,? stressed Duhm. Downplaying fears of any further negative impacts of the economy, he also said this was the right time to be expanding in India as Indians were getting increasingly brand conscious and embracing luxury brands.
?We started with ready-to-wear for men as we found them easier to shift to the brand,? said Abhay Gupta, Executive Director, Blues Trading Company, which is the franchisee for Versace in India. ?Then we found women also demanding ready-to-wear. But few Indian women can fit into western lines. However, accessories worked well for us as anyone could carry them.? Gupta explains that there is an acceptance of accessories. ?One bag a day has been our sales figure. The price range is between Rs 18,000 to Rs 4-5 lakh. The Rs 2 to 2.5 lakh bags do work for the Indian market.?
In a marked departure where the brand concentrated on accessories, the new store also has the ?First Line? or the latest ready-to-wear collection for men and women. He definitely sees an affinity in brand?s offering and India?s choice of apparel. ?India has an appreciation for colours, and uses intricate and lavish textures and fabrics, like Versace,? Duhm explained.
The flagship store also includes men and women?s accessories?bags, shoes, belts, eyewear, watches and jewellery. Also on show is a selection of the Versace home collection. ?We have a established business for accessories and bags, but need to grow our ready-to-wear, which will follow,? said a confident Duhm.
The Versace home collection, Versace CD, has also been showcased for the first time in India. It includes the brand’s classic tableware and furniture pieces besides Crystal, the theme of Versace Home 2009. ?We?ve introduced a few pieces from different collections. If it takes off well, we could look at an independent store for the home collection,? said Gupta.
Unlike some other global luxury brands entering India, Versace has not yet made any special collections for India. ?Versace is a global brand and all our collections are the same in all our stores,? explained Duhm. Gupta explains that each brand must have its own identity. ?Brands have often come without complete knowledge to India. It is important to land feet first in the Indian market.? He adds that this is an aspiring market and the brand is looking at every aspect of luxury. ?In India people go first for eyewear, for about Rs 10,000. The Versace tie costs about Rs 7,000 and we encourage products such as these. The first step is very important. We try to keep a friendly store environment. Our aim is not to scare people.? Presently Versace has 60 free standing and 34 franchisees globally for the First Line.
?We are careful with our investments and have been growing in the US, Europe and China,? elaborated Duhm. ?We have closed in Japan, but will re-enter with a new brand positioning. The date is not decided yet.?
In 2005, on a still memorable visit to India, Donatella Versace, Vice President had declared that India would have five Versace boutiques. Finally that could be coming true. As Gupta says, we are bullish about break even soon.