Retail in Asia

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Why fashion brands are heading for splitsville in India

Denmark-based fashion house Bestseller, which owns Vero Moda, Jack & Jones and Only, recently snapped its four-year-old franchisee ties with its Indian partner, Bombay Rayon’s Prashant Agarwal. Bestseller, owned by Danish billionaire Anders Povlsen and family, is the latest in a series of such splits.

Last year, there were at least five such break-ups between overseas brands and Indian partners and the year before that, Indian fashion saw some of the biggest companies ending their partnership. First there was a break-up between Mumbai-based Alok Industries and UK’s iconic suit maker Savile Row as the former wanted to exit the retail space. Then DLF Brands ended its franchise partnership with Italian brand Alcott. French fashion conglomerate LVMH group’s Sephora also ended its partnership with Genesis Colors.

While Savile Row is looking for another partner, Sephora has signed an agreement with DLF Brands. Even Bestseller has applied to the Department of Industrial Policy and Promotion (DIPP) to bring in foreign direct investment in all its brands under single brand retail.