Bosideng to buy British apparel chain as part of European expansion
The mainland coat maker with a West End store is closing in on the 80-shop chain as it looks to expand into Europe's luxury market
Bosideng International, the mainland coat maker that runs a store in London's West End, said it is poised to buy a British chain and has met with European luxury companies as it seeks deals on the continent.
Bosideng was close to acquiring an 80-store apparel chain in England to sell its down jackets, and was also in early negotiations with European high-end coat brands about making a possible acquisition, said Julie Sun, the company's vice-president for corporate strategy and investor relations.
The Hong Kong-listed coat maker, which sells down-jackets and winter coats under brands such as Bosideng and Snow Flying on the mainland, is pushing to build a European presence to boost its image at home and increase sales outside China.
We need to get a foothold in [the lifestyle] sector to improve our profit margin
Close to a third of Chinese luxury buyers will shop in Europe this year, up from a fifth last year, says McKinsey consultants.
"The majority of Chinese consumers still prefer Western brands and products over local ones," Sun said.
"With so many Chinese travelling abroad, if they go to New York's Fifth Avenue, Paris, or Milan and they see your store, it would help your sales and help brand recognition."
The acquisition of the British chain, privately owned and currently loss-making, was likely to be completed by the end of next month, Sun said. Bosideng would pay a minimal sum for the chain, she said, declining to specify the amount.