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2004-9-6 10:39:00 a.m. HKT, XFNA
Hong Kong's YGM Trading to use Guy Laroche label to spearhead push into China
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HONG KONG (XFN-ASIA) - YGM Trading Ltd said it plans to use the
prestigious French label Guy Laroche, which it acquired recently, to
spearhead its push into the Chinese market.
YGM Trading, which is engaged in the manufacture and retailing of apparel
and accessories, caused a stir in late June when it moved in on Paris-based
Guy Laroche in a 17 mln eur deal.
The company, which is listed on the Hong Kong Stock Exchange, employs
about 2,500 people around the world and made a net profit of 171.19 mln hkd
in the year to March 2004.
From its network of more than 300 shops and counters worldwide it retails
and wholesales world-renowned apparel and accessory brands such as Michel
Rene, Aquascutum and Ashworth.
The Laroche deal was made with one eye on China, company officials said.
""With a population of 1.3 billion and the largest GDP (gross domestic
product) growth in the world, there's a massive potential in China,"" said Sam
Chan, managing director of YGM Trading.
China accounts for half of YGM's 700 mln hkd revenue.
""The Chinese people like Western brands, Western clothing. That is a
fact. Guy Laroche is an upmarket, prestigious French brand which will
certainly appeal to the affluent crowd in China,"" Chan told Agence
France-Presse.
Chan said the company has targeted a doubling of growth in the next five
years and is planning to open more than 100 stores in China in the next three
to four years.
He believes Guy Laroche, which also owns the 'Mic Mac' brand, has the
global star quality to drive YGM's China ambitions.
Founded in 1957 by Laroche himself, the label has been helmed by such
designers as Alber Elbaz, Sophie Sitbon and, most recently, Laetitia Hecht.
To revitalise the brand, YGM has just taken on new designer Herve Leroux,
who had worked for Karl Lagerfeld at both Fendi and Chanel before launching
his own label in 1985.
YGM will splash 1 mln eur in a new flagship store on Paris' prestigious
Rue Francois the First.
The designer, known for his glamorous evening wear, will present his
first collection in October during spring-summer 2005 ready-to-wear week in
Paris.
Surprisingly, the Laroche deal is YGM's first purchase since it bought US
leisure apparel maker Hang Ten in 1995.
Papers were signed after only three months of negotiations.
""We'd looked at a lot of brands but they were not always available.
Sometimes we negotiated for a deal for one year or two only to fail,"" said
Chan.
Chan expects the new deal to bring in further growth for the company as
it pushes for sales in its target markets in Hong Kong, Macau, Taiwan and
China.
YGM Trading operates a garment manufacturing plant in Dongguan, China but
outsources most of their garment productions all around the world.
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