The company first entered India with its formal men’s wear collection sold under the brand name Versace Collections and has a franchise agreement with Delhi-based Blues Clothing Co (BCC). “The growth of premium-end apparel market in the country in this decade has been phenomenal and Versace will try to capture the entire spectrum,” said BCC executive director Abhay Gupta.

“The decision to diversify into women’s wear (Gianni Versace) and casual jeans wear (Versace Jeans Couture) is a result of its success with Versace collections and the potential of the particular segments.

Versace’s existing women’s wear collection at its over-a-year-old boutique in Mumbai’s JW Mariott hotel is set to close down, which would make the Delhi store the only one in the country with a Versace Mainline collection.

The premium apparel segment is currently valued at Rs 2,100 crore and is one of the fastest growing sectors with a growth of 20 per cent year-on-year. Already, a host of big retailers like Guess, Esprit, Channel, Clarks, Mango, Aigner, Hugo Boss, Mark & Spencers, Trussardi and Tommy Hilfiger have built a retail presence in the country, mostly through the franchise route. With suits priced in the Rs 70,000-200,000 range, Versace’s collection sits at the top of premium brands.

“The store in Mumbai was not quite a success and is being closed down due to lack of demand,” said Gupta. “Despite Mumbai being an attractive destination for a fashion giant, Delhi is a more practical choice in a lot many ways.”

Premium space, for instance. “One of the big problems in the growth of high-end brands is the absolute lack of luxury retail space. We have tied up with DLF for space at their upcoming Emporio luxury malls.”

Versace mainline would be launched by March 2008 at the Grand Hotel, Vasant Kunj, while Versace Jeans Couture would make a debut at two exclusive boutiques in South Extension and DLF Emporio Mall, Gurgaon. DLF is set to open up more such malls in Mumbai (in 2009), Hyderabad (2010) and Chennai (2011) and there will be a Versace boutique at each of these malls.