Bosideng all set to buy British fashion chain

Chinese down and menswear retailer Bosideng is ready to acquire a British 80-shop fashion chain. In its quest to build a European presence, increase sales outside of China and boost its image at home, the Hong Kong-based company is also in talks

with European luxury fashion companies.

"The majority of Chinese consumers still prefer Western brands and products over local ones," said Julie Sun, Bosideng’s vice-president for corporate strategy and investor relations. "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," explained Sun the company’s search for appropriate acquisitions.

Bosideng to acquire British chain for ‘minimal sum’

The British fashion chain whose name has not been revealed is privately owned and currently in the red. Sun confirmed that the acquisition would likely be completed by the end of next month. She declined to give the exact purchase price but confirmed that Bosideng would pay a ‘minimal sum’ for the whole 80-shop chain.

Bosideng sells down-jackets and winter coats under its brands Bosideng and Snow Flying and opened its first store in London’s West End only a year ago. The flagshipstore is doing well; its revenue in last two months increased by 50 percent compared to the same period last year.

Expanding into Europe should be worth it as according to consulting firm McKinsey, almost a third of Chinese luxury buyers will shop in Europe this year; last year that percentage was at only a fifth.

Bosideng, also called China’s Marks and Spencer, has about 11,000 shops in China and is well-positioned in the mid- to low-end market. "But for the growing population of the middle class, they moved to other higher brands to pursue lifestyle. We need to get a foothold in this sector to improve our profit margin," explained Sun.

“In the next year, we are going to focus on entering the high-end department stores”, confirmed Wayne Zhu, chief executive of Bosideng’s British operations, the UK expansion plans. In talks with several retailers, Zhu hopes to have Bosideng’s London collection in British stores by next autumn.

Image: Bosideng London