Making a ‘Marc’ via franchising
Aiming to expand ‘Marc Cain’ the luxury fashion brand, VEMB Lifestyle Pvt. Ltd signed the Master Franchise Agreement for Marc Cain in India and the United Arab Emirates (UAE). In an interaction, Punit Aggarwal, MD, VEMB Lifestyle Pvt. Ltd shares the brand’s expansion plans.
Namita Bhagat (NB): Brief us about VEMB Lifestyle Pvt. Ltd?
Punit Aggarwal (PA): VEMB Lifestyle Pvt. Ltd was formed in 2005. It was earlier known as Vaishali Garments Pvt. Ltd. We got into the export of hand embroidered garments and accessories to international brands including Marc Cain. We added more into garments section and then we got into retail, bringing Marc Cain, the luxury fashion brand into India. At present we are growing Marc Cain and looking for new ventures.
NB: Tell us about the brand ‘Marc Cain’ and what is its USP.
PA: Marc Cain is an Italian born German brand. It was a dream of Helmut Schlotterer, the founder of the brand. It is a high end fashion brand which is very popular in Europe and is growing at a phenomenal rate. We are opening one shopping store in every 15 days or every fortnight. It has huge and strong presence in China. The USP of the brand is the ‘Coordinates’. The brand has two labels Marc Cain Collections and Marc Cain Sports. The synergy between the two is the uniqueness of the brand. For example: You can pick up something like a top from the Collections and match it with a trouser from Sports or T-shirt from Sports and match it with a trouser from the Collections. That is one part of it. Also, if you pick up something like a trouser this time and may be you come back the next season and find a matching top again. So what we cater to is a complete ensemble look at Marc Cain and if you are intending dressing up for party we can complete the look from head to toe.
NB: Elaborate on the nature of the agreement the company has signed with Marc Cain for the Middle East and what encouraged you to expand into the region?
PA: We have a Master Franchise Agreement for Marc Cain in India and the United Arab Emirates (UAE). UAE is lucrative destination. The Russian and the Chinese people are keen on Marc Cain clothes a lot as we had experienced it when Marc Cain team opened in China and Russia. Also, they travel to UAE during holidays. So we thought of signing in Marc Cain to cater to the kind of market that UAE has.
NB: What are your current and prospective franchised locations in the UAE?
PA: Right now in UAE we have one outlet in Bur Juman Mall and we are in talks with Dubai Mall and Mall of Emirates to have space for more outlets. Also we plan to have outlets in Nation Towers coming up in Abu Dhabi. These projects will be our own as of now as a Master Franchisee, but in case we get some franchise partners interested in joining us we are open.
N B: What were the initial challenges you had to face in terms of UAE law and regulations while expanding in the region?
PA: See, the laws in the UAE and laws in India are very different. It is quite difficult to form a company in Dubai (in UAE) than it is in India. The challenges were in terms of ‘forming the company’ but the best thing about UAE is people are very professional that make things quite easy and fast. Still I believe initial hiccups are quite naturals even if it is in India or in any other country.
NB: Do you think taking a local partner while expanding would have made the process bit easier for you?
PA: No, nothing of that sort that if I had gone for a local partner, things would have been different all together. I think if I would have gone for a partner may be it would have taken time of week or so early. The people I am associated with are all top professionals who formed the company and such professionals are easy to find in these countries. The, regulatory system is much more organised and efficient. Authorities are systematic in their work approach and they are investor friendly too.
NB: What are the capital and space requirements for partnering with Marc Cain in the UAE?
PA: The capital for opening Marc Cain in UAE is around two to three million Euros in your pocket. It will be needed to require to Stock from Marc Cain and interiors that will come from Germany. Also, the space we require is about 120 to 200 sq. meters.
NB: Is there any difference between your franchise system in India and the UAE?
PA: Our franchise system is same as in India as in UAE in every respect.
NB: What is your overview for the UAE Fashion market?
PA: UAE is a tourist destination and people come for shopping here from all over the world. All the major fashion brands are already present in the UAE. They have a huge presence and a huge market over there and people are very much fashion conscious. It is a very good market to be in.
NB: What would be your advice for the aspiring entrepreneurs and businesses from India looking for expansion in the UAE?
PA: I would tell them it is a right thing to get into the UAE because the reality check has been done. And the cost has come down in Dubai than what it was two years or three years ago when there was a bubble in the UAE and everything seemed to be expensive. It is the perfect time to invest into UAE and it will benefit you in the long run. When you look at the region, it’s a destination which is very accessible from India and rules are easy. You just have to make sure that you have a right business over there.
NB: Do you have any further expansion plans for the Middle East?
PA: Yes, apart from the UAE, we are also planning expansion in Qatar and Kuwait in next two to three years.
