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Septwolves aims to be franchise platform for luxury brands
By Richard Fu |
March 29, 2011, Tuesday
|
Online Edition
Online Edition
FUJIAN Septwolves Industry Co, China's leading menswear maker, bought the franchise partner of luxury brands Canali and Versace in Zhejiang Province to expand into new business area.
The 70 million yuan (US$10.7 million) acquisition of Kenna Fashion Hangzhou will "help Septwolves build a franchise platform for international luxury brands in China and bring our own brand closer to the international market," Zhou Shaoxiong, chairman of Shenzhen-listed Septwolves, said after announcing the deal in Beijing today.
Hangzhou-based Kenna Fashion, which also owns the franchise of Scandinavian luxury brand Georg Jensen, posted a net profit of 7.84 million yuan in 2010.
Zhou sees great potential for franchise business in China because not every international brand can afford opening direct-sale stores here and they need local partners who are familiar with the domestic market.
China may surpass Japan as the world's biggest market for luxury products by 2015, Commerce Minister Chen Deming said early this month, citing the country's large population and rising income. Chen said the government will work out measures to let foreign brands sell their China-made products directly in China to benefit Chinese consumers.
Sun Ruizhe, vice president of the China National Textile and Apparel Council, said the Septwolves deal showed a good example of the industry's go-out strategy.
"Manufacturing shouldn't be a problem for China's textile and garment industry, which accounts for a third of the world's export market," Sun said. "What we should do now is to have some say in fashion globally."
The 70 million yuan (US$10.7 million) acquisition of Kenna Fashion Hangzhou will "help Septwolves build a franchise platform for international luxury brands in China and bring our own brand closer to the international market," Zhou Shaoxiong, chairman of Shenzhen-listed Septwolves, said after announcing the deal in Beijing today.
Hangzhou-based Kenna Fashion, which also owns the franchise of Scandinavian luxury brand Georg Jensen, posted a net profit of 7.84 million yuan in 2010.
Zhou sees great potential for franchise business in China because not every international brand can afford opening direct-sale stores here and they need local partners who are familiar with the domestic market.
China may surpass Japan as the world's biggest market for luxury products by 2015, Commerce Minister Chen Deming said early this month, citing the country's large population and rising income. Chen said the government will work out measures to let foreign brands sell their China-made products directly in China to benefit Chinese consumers.
Sun Ruizhe, vice president of the China National Textile and Apparel Council, said the Septwolves deal showed a good example of the industry's go-out strategy.
"Manufacturing shouldn't be a problem for China's textile and garment industry, which accounts for a third of the world's export market," Sun said. "What we should do now is to have some say in fashion globally."
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