Retail News India: Denmark-based fashion house Bestseller may soon apply for entry into India’s multi-brand retail segment, according to a person aware of the development.
Bestseller owns the brands Jack & Jones, Vero Moda and Only, which it sells in India through franchisee partner Bombay Rayon Fashion.
The retailer will be approaching the Department of Industrial Policy and Promotion (DIPP) with its plan for a multi-brand apparel and fashion venture with Prashant Agarwal, managing director of Bombay Rayon, in the coming weeks, the person, who did not wish to be named. In the proposed venture, Bestseller will hold the permissible 51% stake while the rest will be held by Agarwal, he added.
According to the DIPP website, Bestseller has already filed a proposal to invest in the country’s single-brand retail segment. Separate applications for the three brands were filed by Bestseller United Singapore, last week. The person quoted earlier said that since Bestseller has already agreed to comply with the 30% mandatory local sourcing as part of its separate applications for single brand retail business for Jack & Jones, Vero Moda and Only, the company will not have any issue with the 30% sourcing clause for the proposed multi-brand venture. Under the multi-brand venture, all three brands — Jack & Jones, Vero Moda and Only — would be sold under one roof.
If confirmed, Bestseller will become the second global retailer to seek a multi-brand retail licence after Tesco, the British retailer whose $110-million investment plan was cleared last month.
Source: Economic Times
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