Boggi Milano has shut more than half of its stores in the past two years
Mumbai:Boggi Milano, a premium Italian menswear brand that has a joint venture with DLF Brands Ltd, has shut more than half of its stores, located in cities such as Mumbai and Pune, in the past two years.
The brand is now left with five stores in the national capital region (NCR), having shut five to six stores outside Delhi.
“Boggi has a limited appeal and works only in select markets," said Dipak Agarwal, chief executive officer of DLF Brands, the retail arm of India’s largest real estate developer. Agarwal does not plan to open more stores for the time being. The brand is now only available in Delhi, which accounts for 85% of the country’s luxury market, he said.
In June 2010, Boggi had said that it was planning to have as many as 35 outlets in India by 2015, according to a PTI report.
DLF Brands exited its joint ventures with Italian fashion houses Giorgio Armani and Salvatore Ferragamo in 2012. It said that the luxury business was not scalable in India.
Luxury brands such as Jimmy Choo and Burberry have just a handful of stores in India. Jimmy Choo has five stores and Burberry has seven stores across Delhi, Mumbai, Chennai, Hyderabad, Kolkata and Bangalore. Louis Vuitton shut its store in Chennai in December, a year after starting operations in the city, The Hindu newspaper reported.
Boggi is a more affordable than the luxury brands with prices of shirts starting at ₹ 4,000. A Boggi suit can cost as much as ₹ 50,000.
The retail industry in India has seen its growth rate drop to a decade low in the last financial year as consumers cut back on discretionary spending. The industry is estimated to be worth around ₹ 31 trillion in 2013-14. Modern or organized retail is worth about ₹ 2.4 trillion.
DLF Brands, however, has retained its investments in the mid and affordable end of the retail business with brands such as Mother Care, Forever 21, Sephora, DKNY, Mango and Sunglass Hut. “We plan to open 40-50 stores across our portfolio every year," said Agarwal.