Lane Crawford Joyce Group launches new arm to target middle classes

Fashion firm Lane Crawford Joyce Group announced the launch of a brand management arm targeting Chinese middle class consumers yesterday as the mainland's luxury goods market slows amid a flagging economy and a nationwide crackdown on corruption.

The service is a new add-on to the group's Walton Brown company, which operates malls and outlets on the mainland and is a departure from the group's high-fashion focus. Aimed at international brands that want to open more than 100 points of sale across the mainland, it will cover distribution channels from retail and wholesale to e-commerce, travel retail and discount outlets, the company said.

"As the luxury market in greater China matures, the rapidly expanding and increasingly aspirational middle class presents new opportunities for us outside our current retail business. Given our heritage and expertise in the market, we are perfectly positioned to capture this opportunity," chief executive Jennifer Woo Chun-en said in a statement.

Mainland luxury sales are expected to drop 2 per cent this year, according to research by consultancy Bain & Co, due to tightening austerity measures. If the forecast is correct, it would be the first slip in mainland luxury sales after more than a decade of growth.

The group, which operates the luxury department store Lane Crawford and high-end Joyce boutiques, already owns a brand management and distribution arm, Imaginex. California label Juicy Couture will transfer from Imaginex to Walton Brown, although the group did not disclose what other brands it was partnering with.

A spokeswoman said Imaginex would continue to focus on luxury and niche brands.