Companies

Pepe Jeans eyes single brand route

Purvita Chatterjee Mumbai | Updated on July 24, 2014 Published on July 24, 2014

Plans to make India hub for S-E Asia





International premium denim brand Pepe Jeans, which is operating in India through a joint venture in the wholesale segment, is exploring the single brand retailing route where 100 per cent FDI is allowed.

Madrid-based Pepe Jeans is holding a majority stake in the Indian venture, while the rest is owned by a group of investors under the name of Glen Marken.



“We are closely looking at single brand retail and are waiting for the changes in local sourcing norms. Currently, we operate as a wholesale company, but if the sourcing norms were to change, then we can look at starting retail operations directly,” said Kavindra Mishra, Chief Executive Officer, Pepe Jeans. The denim brand began operations in India through the franchise route in 1989 and later floated a joint venture.

Sourcing norm

“While we have been sourcing 100 per cent locally, it’s the clause of local sourcing at 30 per cent from SMEs (small and medium enterprises) that has made us hold back. We do not want to compromise on the quality of our products,” added Mishra.

The Government is reportedly contemplating removing the 30 per cent local sourcing clause to make more international brands invest in the country. Pepe Jeans is also planning to use India as a sourcing hub for South-East Asian countries. India is Pepe’s fifth largest market in terms of sales turnover with Germany and France being its leading markets.

Pepe has also been able to reduce prices for the Indian market due to its 100 per cent local sourcing capabilities. In India, Pepe’s retail sales turnover stands at ₹500 crore, and the brand will be extended into kids wear and footwear by the second half of next year.

Published on July 24, 2014

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