DLF Ltd, one of India’s largest companies in the realty sector, is betting big on bringing in the best premium and luxury lifestyle brands under a newly-formed subsidiary, DLF Brands. The first label that the company brought into the country was Armani followed by a tie-up with Salvatore Ferragamo.
Last week, the company launched five more brands — Boggi, Sunglass Hut, Sia Home Fashion, Alcott and Piquadro — in the premium segment. Timmy Sarna, vice-chairman, DLF Brands spoke to ARCHANA JAHAGIRDAR about the company and on what the future holds for the premium and luxury brands he’s bringing into the country in times of recession.
Why did DLF Ltd feel the need to get into retail and create a new company?
We saw huge potential in this segment, provided it’s done well. The perception of the Indian consumer is that the international brands do not bring in their full range and that the products are more expensive here. A lot of international retailers have come with smaller stores, so they can’t possibly fit in everything. Also, India levies huge duties on these products. The challenge for DLF Brands is to bring in international brands at lower price points than their home markets. When we spoke to our potential partners and showed them our price range they understood our point.
Our effort then is to score on pricing, full range as well as on the quality of stores. The retail experience has to be unmatched.
Some of the brands in your portfolio, like Boggi, aren’t well-known in India. How will you help the consumer connect with an unfamiliar label?
You have to guide your customer properly. We have a well-trained and experienced team in the Boggi store that will help the customer, once he walks into the store, to make the right choice. We are also planning corporate events and workshops to help a man dress in a flattering way. The pricing, too, at Boggi is fantastic. You can get an Italian suit [Boggi is an Italian brand] at a price point that is unbelievable. We were able to convince our partners that India is a long-term market and we plan to cater really well to it. For instance, Boggi has already done a special range of shirts only for India. Our first two years will be dedicated to educate the consumer.
How were the various brands that the company has tied up with selected?
We have done the selection through what I would call, touch and feel. After we had done the two tie-ups with Armani and Ferragamo in the luxury space, we wanted to get into the menswear segment as we see potential there. That’s how Boggi came on board. When we wanted to sell sunglasses, Luxoticca, which is probably the biggest company in eyewear in the world, was a natural choice. Basically our partners and our skills have to complement each other.
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Which other brands are you looking to bring to India in the coming year?
We already have Sia Home Fashion in the home segment, but we will be announcing another tie-up. We are also looking at kids wear. We will add three to four brands by next year.
Is this a bad time to launch new brands when people aren’t spending very much?
In times like these, if you do things differently it can give you an edge. For Boggi, we are planning 30 to 40 stores in the next five years. For Sunglass Hut, we will have 70 to 80 stores in the same time period. Our budget is flexible right now, but it’s also opportunity-driven.