Speaking during Milan Fashion Week, Gucci Group Chief Executive Officer, Robert Polet, told Bloomberg that, “For a long, long time to come, Asia will be the primary focus of Gucci Group investments.”
Polet also added that 22 of the 27 stores the company opened in the first half were in Asia. He said, “Emerging markets remain engines of growth. They might slow down slightly, but they’re still growing.”
Polet also suggested that acquisitions may be on the agenda, but would not discuss possible targets.
Still on the Asian expansion theme, we read in The Economic Times that Gucci has parted ways with its Indian franchisee, Vijay Murjani, in favour of a franchise agreement with Luxury Goods Retail, run by investment banker Ashok Wadhwa. However, this new agreement is in the process of being converted into a 51:49 percent interest* joint venture (JV).
A spokeswoman from Ashok Wadhwa stated, “Gucci will control the majority stake in the JV and it will drive the day-to-day business in India.” So it seems to us that Gucci is in a good place right now – holding the reins to a potentially lucrative partnership.
*Indian rules allow only 51% foreign investment in single-brand retail and none in multi-brand retail.