German luxury fashion group Hugo Boss, which already has a presence in India, does not intend to enter retailing for now though the Centre has permitted foreign direct investment in single-brand retailing upto 51 percent.
"Traditionally, we have been into the wholesale business. We have opened retail stores only in select regions across the world. Since the bulk of our business is generated through franchise, we intend to focus on expanding in the Indian market only through franchises. We do not intend to enter the Indian retail market at the moment," an official representing Hugo Boss told Business Standard in Bangalore on Friday. Hugo Boss has been operating in India since the last seven years through its UAE-based franchisee, Bin Hendi Enterprise.
It has opened a store in New Delhi and two in Mumbai. The fourth store was officially opened at Leela Kempinski Palace Hotel inBangalore on Friday.
"Indiais an important market for us. The economy is growing and it is an encouraging factor. We intend to make our presence felt in a strong manner by undertaking more campaigns," the official added.
Tanveer Ahmed, vice-president (finance),Bin Hendi, said that the company has plans to open Hugo Boss stores in Chennai, Hyderabad and Kolkata in coming days.
"Butwe are very specific about the location of these stores. We are looking for suitable space for our stores in the three cities," he added.
The company has invested nearly Rs 25crore in the Hugo Boss stores in India. "We are the only franchisee to operate Hugo Boss stores in this country. We have plans to expand in a big way as the response has been encouraging. In the past two years, the menswear collection of Boss Black and Boss Orange have been highly successful in India," Ahmed said.