Arvind Brands and Retail Limited, a subsidiary of Arvind Limited, is set to market PVH Corp’s (PVH) renowned brand Calvin Klein in India. This marketing right came to Arvind after it recently acquired a 49% stake in the joint venture that acts as the licensee of the Calvin Klein trademarks in India, Premium Garments Wholesale Trading Private Limited, from the previous partners, Murjani Group.
Per the new license agreement with Premium Garments, Arvind Brands will be responsible for selling Calvin Klein Jeans apparel and accessories, including belts, bags, and small leather goods, as well as Calvin Klein Underwear products in India.
The new agreement will auger well for PVH Corp’s vision for the Calvin Klein brand after it became the sole owner of the brand by acquiring The Warnaco Group Inc. in Feb 2013. Also, the company is expected to make the best of Arvind’s marketing expertise in India. Further, the joint venture will emphasize on exploiting marketing opportunities for the Calvin Klein Jeans and accessories, and innerwears in India, while focusing on the expansion and betterment of these products.
PVH’s association with Arvind dates back 20 years when Arvind became the license distributor of PVH’s ARROW brand. Over the years PVH has tried and tested Arvind’s marketing skills through its joint venture to market its Tommy Hilfiger, ARROW and IZOD brands in India. Through this latest collaboration, both the company’s are aiming to position Calvin Klein as the largest lifestyle brand in the Indian market in the next five years.
PVH Corp is one of the leading global apparel companies and owner of the world’s most popular brands, namely Calvin Klein and Tommy Hilfiger. Apart from owning and marketing these lifestyle brands, the company has some of the largest shirt and neckwear brands to its credit including Van Heusen, IZOD, ARROW, Warner's and Olga.
Additionally, the company markets a variety of goods under its license brands which include Speedo, Geoffrey Beene, Kenneth Cole New York, Kenneth Cole Reaction, MICHAEL Michael Kors, Sean John, Chaps, Donald J. Trump Signature Collection, JOE Joseph Abboud, DKNY, Ike Behar and John Varvatos.
Despite possessing such a solid portfolio of brands, PVH Corp. remains focused on brand building, asset management, global expansion and effective implementation of business strategies to drive long-term growth. We believe that the company is moving in the right direction, which will help it to exploit opportunities in the lifestyle apparel market. However, lingering macroeconomic factors could dampen its growth in the near term.
Currently, PVH Corp. carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the apparel space include Hanesbrands Inc. (HBI), Joe's Jeans Inc. (JOEZ) and Michael Kors Holdings Limited (KORS), all of which carry a Zacks Rank #1 (Strong Buy).