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Septwolves takes franchise way to grow
By Richard Fu |
March 30, 2011, Wednesday
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Print Edition
Print Edition
FUJIAN Septwolves Industry Co, China's leading men's garment maker, bought the franchise partner of luxury brands Canali and Versace in China to expand into a 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 international markets," Zhou Shaoxiong, chairman of Shenzhen-listed Septwolves, said yesterday in Beijing when he announced the deal.
Hangzhou-based Kenna Fashion, which also owns the franchise of Scandinavian luxury lifestyle brand Georg Jensen in China, posted a net profit of 7.84 million yuan in 2010, according to a statement.
Zhou sees great potential for the franchise business in China because not every international brand could afford to open direct-sale stores in the country and they need local partners who are familiar with domestic market.
Sun Ruizhe, vice president of the China National Textile and Apparel Council, said the Septwolves deal is 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. "Now what we should do is to get some say in fashion globally."
China may surpass Japan to become the world's biggest consumer of luxury goods by 2015, Commerce Minister Chen Deming said early this month, citing its large population and rising income of the people.
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 international markets," Zhou Shaoxiong, chairman of Shenzhen-listed Septwolves, said yesterday in Beijing when he announced the deal.
Hangzhou-based Kenna Fashion, which also owns the franchise of Scandinavian luxury lifestyle brand Georg Jensen in China, posted a net profit of 7.84 million yuan in 2010, according to a statement.
Zhou sees great potential for the franchise business in China because not every international brand could afford to open direct-sale stores in the country and they need local partners who are familiar with domestic market.
Sun Ruizhe, vice president of the China National Textile and Apparel Council, said the Septwolves deal is 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. "Now what we should do is to get some say in fashion globally."
China may surpass Japan to become the world's biggest consumer of luxury goods by 2015, Commerce Minister Chen Deming said early this month, citing its large population and rising income of the people.
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