News: Mukesh may get Armani to India

(HT 22/04/2006) Mumbai - Mukesh Ambani’s Reliance Industries Ltd (RIL) is in an advanced stage of negotiations to bring Armani stores to India. The world’s leading luxury brand is contemplating a license agreement by which it will have exclusive outlets at RIL’s retail stores.

RIL is foraying into retail in a major way and the deal would redefine corporate dressing in India. Armani, noted for its unstructured yet refined approach to formal wear, has been studying the Indian market and industry sources say it may debut through the RIL alliance early next year. The RIL-Armani license agreement would initially result in stores in major metros. An RIL spokesperson declined to comment.

Armani, which is becoming increasingly popular with Indian corporate high flyers, may not price its products too high. While a typical Armani shirt costs $400 to $500, sunglasses are priced at $300 to $330. “I’ve been buying Armani from Europe and the US. It’s good news that the brand is finally coming to India. If prices are lower, I’ll buy the products from India,” said Rahul Mehta, director of Mumbai-based exporter Creative Garments.

Global market research agency AC Nielsen had selected Armani and Gucci as the world’s most coveted designer brands through a global survey in February.

“Giorgio Armani knew the importance of building and maintaining a strong brand when he started his business 35 years ago. When consumers in Italy, China or UAE purchase a Gucci bag or an Armani suit, they are prepared to pay a premium because they are buying the image the brand represents,” said the survey.