New Look set for Landmark JV

BANGALORE: The $2-billion New Look, a fast fashion brand headquartered in UK, is likely to enter into an equity JV with the Landmark Group for tapping the Indian market, sources said. The deal is being structured according to the single brand FDI norms in retailing, where international brands are allowed to hold 51% stake.

However, the equity structure of the JV is not yet clear. Sources said New Look was betting on big expansion plans in India and China ahead of a possible big floatation next year. The Dubai-based Landmark already has a licensing deal with New Look in the Middle East even though both players were open to an equity deal in India, sources added.

When contacted, Landmark Group declined to comment. Landmark���s international brands division already operates Kappa and Bossini in the domestic market. It is also in the midst of rolling out another European brand Springfield here. New Look has 570 stores in the UK and Ireland and is also expanding across continental Europe with stores in France and Belgium.

Analysts estimate New Look, which had sales of ��863 million in the year to March, could be worth up to ��2 billion. New Looks falls in the category of fast fashion targeted at youngsters looking at impulsive buys.

Its colourful product portfolio priced in the medium to lower bracket also sees continuous replenishments on account of its fast moving nature. According to sources, the company wants to take New Look worldwide to compete head-on with global retailers such as H&M and Zara.

New Look, that recently signed model Kelly Brook to design a lingerie range, is also looking to open at least 50 stores in the Middle East. In September, the group opened its first store in the Middle East, in Dubai. Its partner, Landmark International, is the largest retailer in the region.