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Playboy on the Lookout for Expansion Avenues in China

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Published on : May 06, 2015

Playboy Enterprises which is the pioneer of adult entertainment in print sees China as one of the most promising markets for expansion.

Though the company is known for its risqué magazines for men, the company also owns a merchandise business that sells fashion apparel to travel luggage o other wares embellished with its iconic logo the ‘bunny head’ which is already the fancy of Chinese consumers.

In the year 2014, the company generated annual retail sales worth US$1.5 billion across the world, of which over one third came from Mainland China. The company now has plans to take its business in China to an altogether another level.

In the last decade, Playboy generated US$5 billion in retail revenue and plans are to double the number in the next ten years. China accounts as an important business place for the company, as added by president of global licensing and chief revenue office at Playboy.

The company has targets to strengthen its foothold to be carried through a licensing deal with Handong United which is a distribution and manufacturing company in the region.    

Playboy has presence in the Chinese market for over two decades. Previously, the company teamed up with few licensee partners spread across several parts of the country, which made it challenging to impose quality control.

Now Handong United being the primary distributor and manufacturer, the company hopes to have better control and oversight. This will further help to broaden distribution networks to reach 3,500 for retail which is currently 3,100. 

Handong United is well established for its quality manufacturing and retail relationship across China. The Playboy executive further added to be hopeful about the new platform to position the company for strong growth in the next decade. 

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