Last year, Fossil and Rajesh Exports had entered into a 50:50 retailing joint venture which was expected to bring in a host of watch brands like Marc Jacobs, DKNY, Emporio Armani, Zodiac apart from Fossil.
Informed sources said the
dissolution of the joint venture was a negotiated and friendly affair as the
local partner wanted to stay focused on scaling up its own retailing business
under Laabh and Subh jewellery stores. It is believed that Fossil has already
incorporated a fully-owned subsidiary after deciding to part ways with Rajesh
However, Fossil will maintain ties with Rajesh Exports and
look at retailing some of its product lines through the former’s stores.
“The objective of the JV was to get Fossil’s product to be sold
through our Subh and Laabh stores and also to try distribute our products in the
international markets through Fossil. Since this is being met directly, we do
not see the need of any JV.
The entire benefit of the arrangement
will be intact even without a JV,” Rajesh Mehta, chairman, Rajesh Exports,
said, when contacted.
The Texas-based Fossil, a designer and
manufacturer of fashion and clothing accessories, is expected to tap the Indian
fashion accessories market through the watch and jewellery segments. The
Nasdaq-listed Fossil carries an expansive portfolio consisting of owned as well
as licensed brands in operating a billion dollar plus global business.
The American giant’s accessories operations also cover
sunglasses and wallets amongst others, with the company’s products mainly
retailed through mid-income stores as well as large-format department store
Two brothers, Tom Kartsotis and Kosta Kartsotis, own around
30% of Fossil. It owns brands like Abacus, Relic, Michele and Zodiac. Its
licensing business covers watch lines of DKNY, Burburry, Emporio Armani, Diesel,
Marc Jacobs and Adidas.
At the time of unveiling JV, Fossil
executives had hinted at the possibility of setting up a watch assembly unit in
India, and it is not clear whether that plan is still on track.
See how fashion's top designers wove this jewelry trend into their Spring/Summer 2022 runway collections.