Big Fashion Houses Focus On Local Market
June 5, 2005 | Levent OZLER
Forget about Paris and New York. Chinese dying for haute couture gowns or the latest luxury bags can now shop right at home.
Makers of luxury apparel, liquors and other goods increasingly are looking to China, India and other developing countries for the growth they won't find in older, established markets in Europe.
To meet soaring demand for Asia's newly affluent, venerable names such as Prada and Giorgio Armani are setting up stores as quickly as they can - and even considering making some of their products here.
"China is certainly the most prominent and most important market we have in front of us," Paolo Fontanelli, chief financial officer for Giorgio Armani SpA, told a conference on luxury brands in Shanghai on Thursday.
Although China, Taiwan and Hong Kong together account for only a tiny fraction of Armani's sales, the fashion group is quickly adding stores in the country, both in major cities like Shanghai and in lesser known ones, such as Shenyang in the northeast and Chengdu in the southwest.
And while the company leads the way in setting up a flagship store on Shanghai's riverfront Bund, just about all the big names now have boutiques in the trendy districts of Shanghai and Beijing.
China is the latest, biggest frontier in the luxury goods market, with India and Russia close behind, sa
more: thestar.com.my/news/story.asp?file=/2005/5/21/asia (251)
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