Tommy Hilfiger has forged a new arrangement for his Brazilian business.
Inbrands SA, a publicly held company in São Paulo, with no shares registered for trade, and the Tommy Hilfiger Group, owned by PVH Corp., have formed a joint venture, Tommy Hilfiger do Brasil SA, which will hold the rights to operate, manage and distribute Hilfiger’s branded products in Brazil. The partnership, which also includes American Sportswear SA [ASSA] as a minority partner, will start its wholesale and retail operations on Jan. 4.
ASSA is the distributor for the Hilfiger brand in Brazil, and will continue to operate its Tommy Hilfiger businesses in all other countries in South America, Central America and the Caribbean. Terms of the joint venture were undisclosed.
Hilfiger has 13 stores in Brazil, and about 300 wholesale accounts.
The move reflects Hilfiger’s strategy to acquire direct interests in the Hilfiger businesses in key markets globally.
“This move allows us to directly support the development and expansion of our retail and wholesale business in Brazil,” said Fred Gehring, chief executive officer of Hilfiger. “Similar to our expansion strategy in other markets, this partnership will allow for accelerated growth in one of the world’s most exciting, high-growth emerging markets.”