US lifestyle brand and retailer Guess plans to set-up an Indian subsidiary to re-launch it by opening company-owned stores instead of the earlier franchisee-operated stores. The plan is to launch two to three stores immediately, followed by 10 more over the next two years, according to a company official report. The firm has closed all franchisee-run stores.
Along with partnerships with popular ecommerce companies, Guess India will start its own portal, with the initial phase focusing on Tier I cities, Lander Isasi, Guess Managing Director for Middle East, Southeast Asia, Australia and India told. The decision followed the recent relaxation of foreign direct investment (FDI) norms by India, said Guess CEO Victor Herrero.
In November 2015, India’s Department of Industrial Policy & Promotion (DIPP) eased norms to provide single brand license holders, i.e., FDI-funded companies allowed to sell products under a single label, multiple retailing options, including own stores, franchisees, wholesale retailing, under one entity.