India is not our first priority for retail expansion: Gian Giacomo Ferraris

Interview with Chief Executive Officer, Gianni Versace SPA

Italian fashion brand Versace has tied up with Pune-based ABIL Group to design the interiors of the latter’s south Mumbai luxury residential project, ABIL Mansion. Gian Giacomo Ferraris, chief executive officer of Gianni Versace SPA, its operating company, spoke to Raghavendra Kamath about the company’s plans and strategy in India. Edited excerpts

Would you look at a fully-owned venture in the country to set up stores here?

Not at the moment. We are happy with the franchisee structure now.

India is not the first priority for our retail expansion. We are expanding internationally, but we are testing the markets. We have other priorities and cannot go everywhere. We are happy with the regulations here. In future, if we want to control the operations directly, it will be a good market to be in.

What about your e-commerce plans for India?

We already have e-commerce sites in North America and Europe. In China, we are setting up a website but not an e-commerce portal. But, we are not looking at e-commerce in India.

How do you look at competition from other luxury brands in India?

Year 2015 has not been a fantastic year for fashion brands, but it has been a good year for us. Versace has been growing at 17 per cent at the group level. We have a lot of potential for growth. In 2016, we expect to see double-digit growth.

So, are you happy with the sales growth in India?

Yes, we are.

Are you planning to bring your hospitality brand to India?

Why not? Depending on the project and if it fits into our strategy and DNA, we can bring it here.

Where does India stand in your scheme of things?

You have to be very prudent and balanced in ascertaining what is important for the company. The project with ABIL is the latest development. It fits with our product structure. Versace does both prêt-à-porter, and haute couture. So we’ll do projects that will match with our philosophy.