Brand barrage

Vijay Murjani breaks his silence to share his group's strategy in branded retail for India as distinct from its management in Western markets.

When the Murjani group, in a joint venture with Arvind Brands, brought Tommy Hilfiger to India in 2004, there was little awareness of how or why India could be the next emerging market for premium or luxury brands. Yet, they soldiered on, taking up the number of Tommy Hilfiger stores from naught to nine in the first year.

The lull thereafter was followed by news late last year that the Murjani group was announcing tie-ups with prominent brands. Calvin Klein, Gucci, Jimmy Choo, La Perla "" they all followed in quick succession, yet Vijay Murjani, managing director, Murjani brands, chose to keep mum on the company's shifting focus from strategic brand management in Western markets to Indian branded retail.

Interestingly, the group has decided to straddle economic classes, distributing its business interests between three segments "" premium, luxury and speciality. Murjani believes this offers their business breadth.

"While we will continue to grow the luxury business, one can do so much more with premium brands because of their wider appeal," he explains.

They intend to peg even lower and hope to include some high street brands with competitive price points (along the lines of Zara, Europe's largest fashion retailer). The Murjanis also show no hesitation in taking on competing brands. "I honestly believe that by placing a Calvin Klein store next to a Tommy store, both will benefit from each other's presence."

With scheduled only for April (premium) and September (luxury), is he worried they're late to the game? Murjani shrugs, "Market segmentation hasn't even begun yet, where's the question of being late?"

The Murjanis seem to be playing their cards carefully. They preferred to ride out the hype immediately following the first burst of luxury brand launches in India, choosing to build a strong top management for institutionalising their business.

What followed were some high profile appointments such as that of Pradeep Mansukhani, ex CEO (sales and manufacturing), Marico Industries who joined as group CEO.

Another unexpected move came in the form of convincing partner brand Gucci to part with one of their own to lead the brand in India. "We just don't have time to invest in a learning curve with key management, so brand owner support is critical," says Murjani.

Is that what will separate them from the other two or three key players (SSIPL, TSG marketing, LV Trading) in the sector? Murjani sidesteps the question: "Companies need to fully understand the complexities and dynamics of launching and nurturing international brands, and we have a history of doing just that."

With so much animation in the luxury space today, is there a race to get to the big brands before others do? "A year ago, I would have said yes, but today brands are chasing us," he replies.

He cautions against hastiness, "It's important to ask the right questions "" what is the brand's culture, does it travel well, is it relevant to India? After that personal taste figures."

So how many more will they add to the stable?" It may be no more for a few years or 20 more, it will all depend on whether we can execute things in a viable manner." Murjani is hopeful of, but not holding his breath to any, duty relief.

"The current duty structure makes business dynamics extremely challenging. Indians know their product prices so you have to be competitive."

Still, he is manifestly optimistic about the performance of their brands. "If Calvin Klein can be $120 million brands in South Korea, surely it's not ridiculous to imagine they will be $50 million brands for us in India in five years' time." Having met Murjani, those sound like conservative estimates.