Reliance Brands Ltd, a subsidiary of Reliance Industries Group and Kate Spade & Company have announced plans to bring the kate spade new york brand to India through a long-term distribution and retail licence agreement. Under the terms of the agreement, Reliance Brands will have exclusive distribution rights to the kate spade new york brand in the country.
The company known for having a huge appeal among millennial women, especially for its handbags, Kate Spade will compete directly with Michael Kors in India, just like it does globally. Kate Spade, with a market cap of $2.5 billion on the NYSE, has been diversifying into home and apparel categories with the intention of becoming a full fledged fashion house a’ la Ralph Lauren. Michael Kors is sold in India by Delhi-based Genesis Colors and has had a good run since it set foot here in 2013.
Reliance plans to open the first few stores for the brand before the end of the year. This will be the 18th international brand in the portfolio of Reliance, which also runs 142 stores of Hamleys, Diesel and Steve Madden, among others.
The New Yorkbased label markets accessories and apparel under two brands – Kate Spade new york and Jack Spade. In India, handbags will start at Rs 10,000 with an average price point of about Rs 25,000. Kate Spade’s other competitor Coach, too, recently announced its entry into the country, also through Genesis Colors, heating up the affordable luxury market. Coach has been losing ground to younger brands like Kate Spade and Michael Kors in major mar kets like the US.
President & CEO Of Reliance Brands : Darshan Mehta
CEO of Kate Spade & Co. : Craig A Leavitt
So lets discuss some questions related to this article which can be asked in the upcoming exams :
1. Name the company which has signed the pact with Kate Spade & Company ?
2. Kate Spade & Co. is related to which industry ?
3. Reliance Brand Ltd is the subsidiary of which group ?
Courtesy : Times Of India