King Khan to cast spell on retail high street

Senior industry sources said that he’s partnering real estate major MGF in its retail arm Aryan Lifestyle, which has just picked up the exclusive franchisee rights for Nike and Tag Heuer.

Aryan Lifestyle is also in talks to pick up the distribution and store rights of Tommy Hilfiger. The move is interesting as an equal JV between the Murjanis and Arvind Mills holds the brand rights for Tommy Hilfiger in India. The brand has banked on a multiple franchisee model to develop exclusive shops till date, but is now keen on speeding up expansion through department stores as well.

Aryan Lifestyle COO Deepak Chabbra confirmed that the company has taken over the franchisee rights for Nike and Tag Heuer but declined to comment on the prospective partnership with Tommy Hilfiger and whether King Khan is a stakeholder in the company. “I cannot comment on future plans.

We will make announcements at the appropriate time.’’ Interestingly, Shahrukh’s 10-year-old son Aryan and the actor have been the brand ambassador for Tag Heuer for almost three years now. The CEO of Tommy Hilfiger in India Shailesh Chaturvedi also declined to comment. “I have no comments to make on this.’’

Sources, however, said that Aryan Lifestyle is also in talks with several brands for similar franchisee arrangements, including international beauty retailer, Sephora. Some industry analysts believe that high-street retail is not directly connected with being a real estate player. Many companies are entering this category as it is a profitable business in its own right. Players need deep pockets but need not necessarily be involved in the real estate business.

Experts, who link retail to real estate, feel that the Shahrukh-MGF combine is a good idea for roping in international brands but may not work for mass affluent brands. “While it’s true that MGF is a mall developer and has access to good locations, it’s still a small player.

It has announced only 11 projects of which six are operational. In this scenario, it may be a good idea to rope in luxury brands which are happy with five to six stores nationally, but I don’t know how a premium label like Tommy Hilfiger, which has the potential to be present in 50-100 exclusive stores, would manage,’’ said a retail expert who did not wish to be quoted.

Source: TNN