Spanish fashion label Desigual says it plans to open 60 stores in Mainland China, including flagships in Shanghai and Beijing.
The launch will be via a joint venture with E-Shine, also a local partner of listed fashion company Septwolves Industrial.
Desigual aims to reach an annual turnover of US$40 million five years from now, with half coming from online and the remainder from sales through physical stores. The company said its primary focus will be Chinese digital channels.
“This collaboration is in line with our strategy of continuing to develop our business in the Asian market, growing China as well as Japan, which is our main market outside of Europe, as well as in other significant markets such as South Korea,” said Alberto Ojinaga, MD at Desigual.
“Our goal is for sales made through the digital channel and those coming from geographies outside of Europe to represent 60 per cent of turnover by next year. Right now this percentage stands at 49 per cent.”
The move is part of the fashion company’s strategy to secure more market shares in Asia, which constitutes 6.5 per cent of its international business. Desigual entered China in 2014 via Tmall launch.
“Knowledge of consumer habits and preferences in the Chinese market is key to success,” Ojinaga added. “Our objective is to achieve even greater growth in the digital environment and to reach out to new customers with products designed for them and suited to the characteristics of the market.”