NEW DELHI: Luxury brand Gucci has parted ways with its Indian franchisee Vijay Murjani, which is also the distributor of premium brands Calvin Klein, Tommy Hilfiger and French Connection in India. Gucci now has a franchise agreement with investment banker Ashok Wadhwa���s Luxury Goods Retail and is in the process of converting it into a 51:49 joint venture.
In forming a joint venture (JV) with an Indian partner, Gucci will follow many other international brands such as Marks & Spencer and Mothercare to move from the franchise model to ownership model that usually offers brands better control over operations and the flexibility to chart an independent course in the market. Most international brands will ideally want to set up their 100%-owned stores in order to ensure they stay in complete control and drive brand reputation. But Indian rules allow only 51% foreign investment in single-brand retail and none in multi-brand retail.
Vijay Murjani couldn���t be immediately contacted for comment. But a person close to the development said Mr Murjani, the man driving the Gucci brand in India, had shifted focus from luxury to premium brands which are doing well. The luxury business is yet to pick up in India and the global recession further made it difficult for luxury brands to sustain, he said. Vijay Murjani-controlled Brand Marketing India had a franchise agreement with Gucci.
The Murjani Group, which started as an apparel maker and grew up to launch several brands in India and abroad, retails premium brands Calvin Klein, Tommy Hilfiger and French Connection in India.
Luxury Goods Retail, set up by I-Bank Ambit Corp���s Ashok Wadhwa���s wife Reena Wadhwa, has now bought over Gucci���s franchises rights as well as three operational stores in Delhi and Mumbai from the Murjani Group. The fashion brand entered into a franchise agreement with Ms Wadhwa���s firm in August and the two are now setting up a joint venture.
���Gucci will control the majority stake in the JV and it will drive the day-to-day business in India,��� said Ms Wadhwa, adding that this was her firm���s first partnership with any international brand.
���I have always had an interest in the luxury industry and so started this firm,��� said Ms Wadhwa who has had her previous stint as an actor and TV software producer. Her firm, however, is not looking at tying up with any other international brands immediately.
Gucci, a nine-decade-old brand that was started by designer Guccio Gucci in Florence, Italy, designs, manufactures and distributes a range of fashion and leather goods such as handbags, luggage, shoes, ready-to-wear, watches and jewellery, but depends mainly on leather goods for more than half its revenue. Shoes and ready-to-wear contribute around 15% each of the brand���s revenue.
Gucci now has presence in several major markets with 35% of its annual revenue of e2,206 million coming from
Europe. North America and Japan contribute 20% and 15% respectively. The company gets 70% of its revenue through sales at its 258 company-owned stores.
FAQs
Luxury brand Gucci has parted ways with its Indian franchisee Vijay Murjani, which is also the distributor of premium brands Calvin Klein, Tommy Hilfiger and French Connection in India.
Who owns the Gucci now? ›
Luxury goods company Kering owns Gucci today. Kering is headquartered in Paris, France, and is majority-owned by the Pinault family. Kering also owns several other luxury brands, including Balenciaga, Bottega Veneta, Alexander McQueen, Stella McCartney, and Yves Saint Laurent.
Is Gucci still popular? ›
Gucci and Louis Vuitton are the most popular luxury fashion brand in the United States, followed by Chanel and Dior.
How did Gucci make their money? ›
In 1921 Gucci opened his first retail location on Florence's Via della Vigna Nuova, where he began selling his leather goods and luggage. He later expanded into selling equestrian accessories. Gucci's four sons, Aldo, Vasco, Rodolfo, and Ugo (his adopted stepson), were soon brought into the family business.
Which country brand is Gucci? ›
Founded in Florence, Italy, in 1921, Gucci is one of the world's leading luxury brands. Following the House's centenary, Gucci forges ahead continuing to redefine luxury while celebrating creativity, Italian craftsmanship, and innovation.
Do any family members still own Gucci? ›
The Gucci family members are not currently working in the day-to-day management of the Gucci company. In the 1990s, following a legal fight amongst the family members, the Guccis surrendered their ownership of the business to a French luxury goods corporation Kering.
Does the original Gucci family still own Gucci? ›
Does Guccio Gucci's family still own Gucci? No, the Gucci family ceased to be involved in the company after Maurizio sold all of it to Investcorp in 1993; Kering (which owns 99% of the company) now owns and operates the business.
How much is Gucci worth today? ›
Most Valuable Fashion Brands
| Brand | 2023 Brand Value $ |
|---|
| 2 | Louis Vuitton | $36.4 b |
| 3 | Chanel | $25.2 b |
| 4 | Hermes | $22.1 b |
| 5 | Gucci | $18.9 b |
96 more rowsGuccio Gucci S.p.A. Subsidiary (S.p.A.) Gucci was founded in 1921 by Guccio Gucci (1881–1953) in Florence, Tuscany. Under the direction of Aldo Gucci (son of Guccio), Gucci became a worldwide-known brand, an icon of the Italian dolce vita period.
Who is the Gucci family today? ›
As of 2022, Maurizio has three grandchildren through his daughters, Alessandra and Allegra, who have both married in the time since Maurizio's death. Alessandra Gucci has one son with her husband, and the three have taken up permanent residence in Switzerland.
Kering (French: [kɛːʁiŋ]) is a French-based multinational corporation specializing in luxury goods. It owns the brands Gucci, Balenciaga, Bottega Veneta, Yves Saint Laurent, Creed and Alexander McQueen.
Is Gucci made in China? ›
Furthermore, it's important to note that Gucci has recently expanded its manufacturing operations and now crafts its designs in China as well as Italy, so a 'made in China' label doesn't need to be a deterrent on dustbags.
Does real Gucci say made in Italy? ›
The front of the leather tag inside the bag should have three lines of text made by heat stamp: The top will have a ® symbol. The middle is the 'Gucci' font. The bottom should say 'made in italy' in lowercase.
Does Patrizia still own Gucci? ›
His divorce from Patrizia was finalized in 1994; he was shot outside of his office the following year. While it all ended in tears for the family, the house of Gucci, which is now owned by Kering, has never been stronger.
Where is Patrizia Reggiani Gucci now? ›
Profile summary
| Full name | Patrizia Martinelli Reggiani |
|---|
| Age | 75 years old (as of 2024) |
| Zodiac sign | Sagittarius |
| Place of birth | Vignola, Modena, northern Italy |
| Current residence | Milan, Italy |
14 more rowsDec 21, 2023
Kering is 42%-owned by Artémis, the holding company controlled by the Pinault family.
