Reliance Brands, a unit of Reliance Industries has signed a deal with NYSE-listed American fashion retailer Kenneth Cole to open stores in major Indian cities. As per the deal Reliance would launch 20 exclusive Kenneth Cole stores in the next three to five years in the country. Though the financials involved in the deal are under wraps, Kenneth Cole Productions made its India entry even as it announced disappointing results in the latest quarterly results.
International fashion retailers are increasingly making in-roads in developing economies like India while their business in the established markets like the US is negatively affected due to a slowdown. After bringing brands like Diesel, Ermengildo Zegna, Paul & Shark, Timberland, Steve Madden, Quicksilver and Roxy to India, Kenneth Cole will be the seventh international fashion brand coming through Reliance Brand. It may be noted that Reliance Brands was set up five years ago to build a formidable fashion business as part of its broader retail ambitions.
To begin with, Reliance Brands will have a network of 50 stores by the end of this year, and possibly 75 by 2012. Kenneth Cole’s apparel line would be priced from Rs 1,700 and footwear from Rs 3,500 going to Rs 8,000. The average purchase price may be in the vicinity of Rs 4,000 to Rs 5,000 targeting the country’s aspirational middle class population especially in the age-group of 25 to 40 years.