French luxury brand Lacoste is planning to explore the franchisee model for expansion into tier-II cities in India.
The decision follows the good response it got in some tier-II cities such as Jalandhar, Jaipur, Chandigarh, and Pune.
According to Rajesh Jain Managing Director & CEO, Lacoste India, good responses were seen from tier-II towns located near the big cities. This apart, an increase in brand awareness coupled with rising proliferation of shopping malls in smaller towns are good indicators.
“While expansion in tier-II towns will mostly be through franchise routes, we will look to stick to the own-store format in major cities,” he told BusinessLine. Lacoste is currently present across 45 tier-I and II locations mostly through the company-owned model.
Plans are afoot to double the point of sales 90 over the next four years (FY-19). Created in 1933 by René Lacoste, the brand – famous for its polos (collared t-shirts) – entered India in 1993. Lacoste India is a strategic alliance between Lacoste and Sports and Leisure Apparel Ltd (SLA).
Most of the apparels sold here are manufactured from its existing facility in the country.
The company has one unit located in Noida, and the second one – in the same complex – is expected to be operational over the next six months.
Lacoste did not share the capacities or the investment details but maintained that units would suffice its India requirements.
According to Jain, the company was also mulling the entry into Nepal and Sri Lanka over the next one year.
Currently, SLA has the exclusive rights to manufacture Lacoste branded garments in India.
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