Retail entrepreneur Tom Hunter has bought the worldwide rights to the Soviet denim brand, and plans to emulate the success of Cherokee by developing the label globally.
Hunter's West Coast Capital, which controls the d2 fashion chain, bought the Soviet licence for approximately EUR1 million (£684,000). The licence covers 72 countries, excluding the US and South Africa.
West Coast Capital had previously owned the UK rights to the Soviet brand. Hunter said the label boosted d2's sales. He added: 'We realised there was going to be pressure from the bottom end of the market, from George at Asda and Matalan. We needed a point of difference.
'Soviet is now the biggest selling brand (at d2] after Levi's, and the margins are higher.' Hunter's vision is to replicate the success of Cherokee, the fashion brand sold by store groups such as Tesco in the UK, and Carrefour in France. But he admitted there are potential problems with taking a label to international markets. 'One size doesn't fit all,' Hunter said. 'I'm very intrigued by the Zara model. We have got to find the trick'.
One fashion industry insider believed that the plan made sense, but questioned whether Hunter had the appropriate international retail expertise.
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