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Hong Kong : Le Saunda plans to launch women''s fashion brand

2004-7-28
Shoe retailer Le Saunda informed it plans to spend about HK$75 million on expansion in Hong Kong and the mainland over the next one year.

Company’s President Eddie Wan said Le Saunda will invest HK$30 million this year to launch a medium to high-end fashion brand targeting young mainland women aged 25 to 35.

Wan said eight to 12 retail apparel outlets, including freestanding stores and counters in major department stores, would be opened under the ‘Antinori’ brand in Shanghai, Guangzhou and Shenzhen in the second half.

The company anticipates opening up to 20 outlets this fiscal year.

“People in China are now more willing to spend on consumer goods such as clothing and shoes, as a result of steady growth in the Chinese economy,'''' Wan said, adding that he expects the launch of the women''s wear brand will further widen the company''s earnings base.

Wan said the profit margin for retail fashion is about 75 percent - a little higher than that for shoes, at 68 to 70 percent.

The retailer expects the apparel business will generate 20 percent of group turnover after one year and achieve break-even after two years. As for its leather shoes business, Le Saunda, which has already attained a retail licence in the mainland, will also invest HK$30 million to add 15 to 20 Le Saunda outlets and 20 Comfort and Easy outlets to its existing 100 selling points in China.

Following the expansion, Wan expects double-digit growth in sales in the coming year.

In Hong Kong, Le Saunda will spend HK$15 million to add five or six stores - including a 1,800-square-foot outlet in Festival Walk - to its existing 17 stores.
 
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