New Delhi: Tommy Hilfiger has again filed an application with the government to open its own stores in India. Last year, it withdrew an earlier application with the Department of Industrial Policy and Promotion (DIPP) as the US fashion company’s proposal had been stuck for more than three years due to regulatory issues.
Tommy Hilfiger Arvind Fashion Pvt Ltd, a 50:50 joint venture between the US premium lifestyle brand and Ahmedabad-based Arvind Ltd, had applied to the DIPP for a single-brand retail licence in June 2102 as it was seeking to add 500 points of sale in India in five years.
These included its own shops, franchisee-run stores and shop-in-shops.
In January 2012, India had allowed single-brand retailers to run 100% subsidiaries in India. But foreign companies investing through this route were allowed to operate only through their own stores and couldn’t engage in franchisee and wholesale trading.
This meant investment proposals got held up. These included plans by Tommy Hilfiger, Italian bag and shoe maker Furla, crystal jewellery and accessories maker Swarovski and cosmetics companies Innisfree of South Korea and Officina Farmaceutica of Italy.
The single-brand policy was overhauled in November to allow wholesale trading, which is needed for sales through franchisees, and retail trading as long as it follows norms for both segments.
A person aware of Tommy Hilfiger’s proposal said the company wants to take advantage of the policy change as it seeks to have a combination of company-owned and franchisee-operated stores.