Italian premium brand Diesel wants to replicate its American success story in India. The company, which draws $200 million (around Rs 920 crore) in sales in the US markets, sees a similar potential here in the next 10-15 years.
"It's a nice dream to have: Do in India the kind of sales we do in the US today," says Diesel Founder and President Renzo Rosso. He is in India for the launch of Diesel's second store in Mumbai.
Diesel will keep the pricing and positioning uniform in all markets. Like the West, in India also, Diesel will be a premium brand. "We cannot sell jeans at $100 in one market and $200 in another," Rosso says. Prices of Diesel apparels begin at Rs 7,000.
According to Rosso, Diesel's first store at the Lower Parel area in Mumbai has crossed its target in the first month itself. "If the same thing continues, then we can break even in the first year itself," he says.
Almost one and a half year after tying up with Reliance Brands, a unit of Mukesh Ambani's Reliance Industries, Diesel opened its first store in Mumbai in April.
Diesel and its earlier partner Arvind Brands parted ways as the tie up could not expand the way both the groups wanted.
Rosso says the Diesel-Reliance JV plans to open seven stores this year and a total of 20 in three years.
The craze for launching cheaper products in India doesn't excite Rosso. "When we launched jeans at $99 in US, others were selling at $50, but now our jeans have become very popular," he says.
The same story will be played out in India too, he hopes.
