Published on : Jun 10, 2015
Fashion group SMCP, which retails fashion labels from Paris, is all set to expand its chain of stores in Hong Kong. The fashion group has confidence to attract shoppers for its affordable luxury merchandise, despite slumping retail in Hong Kong.
SMCP, which is 70% owned by KKR & Co., has plans to open at least five stores in Hong Kong in the next one year, on top of its existing eight which includes Prada SpA and Burberry Group Plc to re-strategize in the city.
Retail sales in Hong Kong dropped 2.2% in April, second month in consecution to show decline as austerity campaign in China curbed spending.
The company owned stores in Hong Kong are witnessing unbelievably high demand for SMCP products, as commented by chief executive officer at SMCP. This is so because the Chinese consumers adore the brands.
The chain which retails fashion labels Maje, Sandro, and Claudie Pierlot and have modern and elegant women as targets, also has plans to double outlets in Macau. In doing so, the number of outlets in China will reach four in coming months and the company further looks at opportunities for expansion in mainland China.
In Greater China, same-store sales rose to double digits in 2014 as compared to the preceding year. The first few months of 2015 have been in line compared to last year, as commented by chief executive officer at SMCP. As per its website information, point of sale stores of SMCP opened in Hong Kong in 2012.
Products from SMCP that are categorized as ‘accessible luxury’ are being vouched by Chinese middle class consumers that is increasingly becoming wealthier and are switching to high quality brands.