DLF eyeing Luxottica franchisee

The country’s largest real estate developer, DLF, is set to sign a franchisee agreement with Italian group Luxottica to retail its premium and luxury eyeware brands, including Oakley, Ray-Ban, Chanel, Dolce & Gabbana, Donna Karan, Prada, Versace and Polo Ralph Lauren.

Euro 15 bn Luxottica group is a leading designer, manufacturer and distributor of prescription frames and sun-glasses in the premium and luxury segment. The group owns 10 premium eyeware brands, including Ray-Ban, Oakley, Vogue and Revo. Luxottica has licence agreements with 20 top brands, including Burberry, Prada, Tiffany and Salvatore Ferragamo.

DLF will open over 100 Sunglass Hut stores over five years, under the franchisee agreement, which is initially valid for seven years, according to a source. The first store is likely to be opened in New Delhi next month. Luxottica currently operates over 2,000 Sunglass Hut retail stores across the globe. In all, the company has over 6,000 optical and sun retail stores across Asia, China, South Africa, Europe and America.

Luxottica has been operating in India since 1999 when it purchased the ailing Ray-Ban from its then owner Baush & Lomb. The company has lately started distributing its other eye-ware brands through a wholly-owned subsidiary in India. The company also has a local manufacturing facility. But now, DLF will take over entire distribution and retail of Luxottica’s products.

The eyeware market has been rapidly growing in India. Besides several leading global brands, the domestic eyeware makers, too, have exploded on the scene trying to access different segments of the market.

For DLF, the tie-up with Luxxotica is significant as it will give the realty firm a toe-hold in accessory space and help it build a strong retail portfolio. The real estate giant has been looking at tying up with several high-end brands in each category to launch itself in the domestic market as a major retail player.

It has already tied up with premium fashion brands Armani, Dolce & Gabbana and Salvatore Ferragamo. The company is also eyeing multi-brand retail and has been in talks with some major foreign retailer for a partnership, although a deal has not been finalized yet.

One Comment

  1. Posted October 31, 2008 at 1:28 am | Permalink

    The prices of up-market residential localities in big metros have witnessed a 20-25% rise in the last four months. Markets such as Greater Kailash I & II, Jorbagh, Golf Links, Amrita Shergil Marg, Sunder Nagar, Vasant Vihar and Shanti Niketan in Delhi, Napean Sea Road, Peddar Road, Breach Candy, Malabar Hills in Mumbai and Richmond Town, Lavelle Road, Cunningham Road in Bangalore have a witnessed a spurt in prices. In Mumbai, the prices in posh areas such as Altamount Road, Napean Sea Road, Nariman Point and Churchgate have gone up by 20-25%. But South Delhi is leading, the market quoted prices as high as Rs 5 lakh to Rs 10 lakh per sq yard. Mr.Vikram Sabharwal, MD of SABH Infrastructure, said, “The prime localities in South Delhi are commanding a huge premium as there is virtually no land available in these posh areas. There is hardly any construction activity taking place. The only activity seen is in large villas being converted into luxury apartments. This has further jacked up demand and the corresponding prices.”For more view- realtydigest.blogspot.com

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