US lifestyle brand and retailer Guess has planned to set up a subsidiary brand for India to re-launch by opening company-owned stores instead of the earlier franchisee-operated stores. The name of the subsidiary brand will be Guess India.
Figure: US lifestyle brand Guess plans to set up Indian subsidiary. Courtesy: Guess.
The plan is to launch two to three stores immediately, followed by 10 more over the next two years, according to a top company official. The firm has closed all franchisee-run stores.
According to a press release, as the brand continues to grow across Europe, Asia and the Middle East, Guess will set forth an aggressive retail expansion plan in India. In addition to its retail expansion, Guess India will also build the wholesale channel through its E-commerce platform, extending its reach in a geographically vast and diverse country. Given the strength of the brand, its lifestyle offering and the company’s direct support of resources.
Guess India is on a clear path to success. The Los Angeles based company has been present in the Indian market since 2012 and has operated in the territory through a distributorship model, said the press release.
Victor Herrero, CEO of GUESS, said that India has always been a country of strategic importance to the brand, and given the recent relaxation of FDI norms, this was a natural decision.
It is a fundamental step for us to accelerate the strength of our brand with clear and strong control over presentation and product assortment that is consistent with our brand strategy, he added.
In November 2015, India’s Department of Industrial Policy & Promotion (DIPP) eased norms to provide single brand license holders, i.e., FDI-funded companies allowed to sell products under a single label, multiple retailing options, including own stores, franchisees, wholesale retailing, under one entity.
Guess began its journey as a jeans company and has since successfully grown into a global lifestyle brand. Guess products are distributed through branded Guess stores as well as better department and specialty stores around the world.