Gucci announced a joint venture in the Philippines

18  May 2022

On Wednesday, Store Specialists, Inc., which is a wholly owned subsidiary of SSI Group, Inc., made the announcement that it will be forming a joint venture partnership with G Distribution B.V. (Gucci), which is anticipated to increase the brand’s visibility in the Philippines.

According to a document that was submitted to the Philippine Stock Exchange, the business that is the result of a joint venture between two companies, Luxury Goods Philippines, Inc. (LGPI), will commence operations on June 1 and will own and run all Gucci stores in the Philippines.

The joint venture was given the green light by the board of directors of the SSI Group on Tuesday.

“As Gucci and SSI shift from a franchisor-franchisee partnership to joint venture partners, the joint venture between SSI and Gucci is projected to significantly accelerate the expansion of the Gucci brand in the Philippines and provide operating efficiency,” the SSI Group said in a statement. “The joint venture between SSI and Gucci is projected to significantly accelerate the expansion of the Gucci brand in the Philippines and provide operating efficiency,” the statement continued.

Kering, the French luxury retail group that also owns Gucci, has a stake in G Distribution BV, a company based in the Netherlands.

SSI Group is a publicly traded company that operates as a retailer of Western products. It carries 95 luxury and fast fashion brands and has locations all across the country. Its roster includes representation from a number of well-known companies, including Armani Exchange, Zara, Burberry, Lacoste, and Boss.

According to the petition, LGPI will be given a starting capitalization of 350 million Philippine pesos. The joint venture business will be owned by Gucci to the extent of 75%, with SSI holding the remaining 25%.

Wednesday saw no movement in the price of SSI Group shares, which remained at P1.27 per share.