News: Gucci owner Pinault coming on India recce
(TNN 05/05/2006) New Delhi - This could be the sure sign to send the army of sceptics on retreat. An indicator, perhaps, that the luxury market in India is finally taking shape. Yes, we’ve had had all manner of CEOs and presidents of various arms of luxury conglomerates flying in and telling us so — but India hadn’t really seen the big kahuna. All that’s set to change.
Next week, Francois Pinault, owner of Pinault-Printemps-Redoute (PPR) and famous as Bernard Arnault’s sparring partner, will be in India for a personal recce to check the ground reality himself. PPR owns Gucci and YSL among a string of other luxury fashion labels.
A delegation has already arrived in Mumbai to prepare the ground for his two-day visit. Pinault is expected to listen to presentations by top retail consultants, and mingle with the A-list crowd (read high-networth individuals) once the sun sets and the stars come out to party.
As reported by ET earlier, the PPR group will be partnering the Murjani brothers in the Indian market. Luxury goods makers are on a high these days, with global travel booming and traditional markets like the US of A on the recovery path — there is spending on high-value items all around.
What’s more, there is the Asian expansion to look forward to, mostly in China, and to a smaller extent in India. The global numbers are good, any which way. On March 2, Paris-based LVMH Moet Hennessy Louis Vuitton reported a 21% jump in profits to $1.7 bn on sales of $16.6 bn — up 11% over 2004.
European media reports forecast profit growth at the PPR group, which will report results on March 9, to be more than 30%, riding on a 16% increase in 2005 sales to around $3.6 bn.
This is a remarkable turnaround for PPR - since a few years ago, when it faced paying up to $4 billion to take full control of fashion house Gucci, PPR had to engage in some complex financial manoeuvring and restructuring.
For it saw its expensive Gucci put on option, while a weak share price - not that far from record lows - was at the very least inconvenient. Some really slick clothes, advertising and celebrity marketing have helped changed the Gucci group’s profile. The question is, can Gucci change India?
Next week, Francois Pinault, owner of Pinault-Printemps-Redoute (PPR) and famous as Bernard Arnault’s sparring partner, will be in India for a personal recce to check the ground reality himself. PPR owns Gucci and YSL among a string of other luxury fashion labels.
A delegation has already arrived in Mumbai to prepare the ground for his two-day visit. Pinault is expected to listen to presentations by top retail consultants, and mingle with the A-list crowd (read high-networth individuals) once the sun sets and the stars come out to party.
As reported by ET earlier, the PPR group will be partnering the Murjani brothers in the Indian market. Luxury goods makers are on a high these days, with global travel booming and traditional markets like the US of A on the recovery path — there is spending on high-value items all around.
What’s more, there is the Asian expansion to look forward to, mostly in China, and to a smaller extent in India. The global numbers are good, any which way. On March 2, Paris-based LVMH Moet Hennessy Louis Vuitton reported a 21% jump in profits to $1.7 bn on sales of $16.6 bn — up 11% over 2004.
European media reports forecast profit growth at the PPR group, which will report results on March 9, to be more than 30%, riding on a 16% increase in 2005 sales to around $3.6 bn.
This is a remarkable turnaround for PPR - since a few years ago, when it faced paying up to $4 billion to take full control of fashion house Gucci, PPR had to engage in some complex financial manoeuvring and restructuring.
For it saw its expensive Gucci put on option, while a weak share price - not that far from record lows - was at the very least inconvenient. Some really slick clothes, advertising and celebrity marketing have helped changed the Gucci group’s profile. The question is, can Gucci change India?
posted by InCar Group Press Room at 14:42
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