Christian Dior Arms Itself To Invest In Retail

The Economic Times:

French luxury label Christian Dior Couture is converting its franchisee into a subsidiary, which will allow it to invest in retail space, manpower, training and store operations. Until now, it was the Indian franchisee, the Khotes, who were investing money behind the brand.

Christian Dior Couture’s (CDC) renewed interest in India comes after the government partially lifted the ban on foreign investment in retail and allowed foreign companies to own up to 51% in single brand companies.

CDC has told the government that it would stick to the rules and sell accessories, garments for men and women, shoes, bags and perfumes under the Dior brand. CDS has given an indicative price for its goods; Rs 58,000 for leather accessories, Rs 17,400 for shoes and Rs 46,400 for watches.

CDC’s plans comes a year after its parent company Louis Vuitton Malletier (LVM), also the world’s largest fashion house, converted its trading arm into its own company to retail Louis Vuitton range of goods.

While LVM did it by picking 51% in Mumbai’s LV Trading, CDC is doing so by converting Christian Dior Trading India Private Limited (CDTIPL), owned by 2 resident Indians, into its own company.