bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

hooksAmpRedirectArticle

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

paywallTypes

createdDate

publishedDate

sponsorType

urlAlias

moreOnThisArticles

commentCount

authorLocations

authors

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

articleSpeeches

socialHeadline

headline

images

flag

firstTopic

glossary

flattenTypeIds

image

relatedLinks

relatedNewsletters

__typename

sponsor

pdfFiles

seriesReverseOrder

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

readingTime

customTimezone

liveContents

SCMP Reporter

ASIA'S leading retail clothing chain Giordano Holdings plans to spend US$3 million to $5 million to expand in Indonesia and India, executive director Jimmy Chan says.

  The projected 50 or more new outlets would be launched in Southeast Asia this year.

  The expansion would include Korea and Thailand.

  'This is not a firm figure as we have not finalised our plans,' Mr Chan said after the company's annual general meeting yesterday.

  He said the expansion was expected to take place in the second half of this year through joint ventures with local partners.

  The Hong Kong-listed firm, which has 700 stores in the Asia-Pacific region with annual sales of $350 million, will initially open 10 stores in major cities such as Bombay and New Delhi.

  'India has potential target customers of 200 million, which is way ahead of China,' Mr Chan said.

  Giordano goods are distributed in India by wholesalers who buy the goods from retailers in Hong Kong.

  'As such, the prices of Giordano goods are relatively high as wholesalers have to pay import duties as well as make a profit from the retail price,' Mr Chan said.

  'When our stores are opened, the prices will come down quite a bit.

  'Giordano will supply the Indian market with goods from its China plant. We plan to produce in India at a later stage when the market is established.'   The group's board underwent a revamp in August last year after its founder Jimmy Lai was reported to have enraged mainland authorities by writing several articles in one of his publications criticising Li Peng and the Chinese Government.

  Giordano's Beijing outlet was shut down in August, 1994, in retribution, costing the company several million dollars.

     Mr Lai resigned to concentrate on his publishing business.

  The company intends to establish a core distributor in every major city. This would overcome the major shortage of product supply as a result of the trade barriers in Asian countries.

  Mr Chan said the infrastructure of some countries did not allow a massive volume of imported goods.

  Salomon Brothers financial analyst Kent Chan said Giordano's project was positive sign of growth in the company.



Giordano outlines regional expansion