Cath Kidston Will Focus On Developing Asian Markets Such As Japan In The Future.

According to the world clothing shoes and hats net, Britain

The CEO Kenny Wilson of brand Cath Kidston recently revealed in an interview with Nikkei Asia Review,

The future will focus on developing Asian markets such as Japan.

Wilson said it plans to increase the total number of stores in Japan to 55 in the next three years, more than double the current number.

Besides Shibuya and Ginza in Tokyo.

Besides hot spots, new stores will be opened in other cities such as Chiba and Shizuoka.

Japan's digital channel expansion and multi-channel shopping experience enhancement are also the focus of Cath Kidston's future development.

Wilson said that the attraction of the brand in Japan came mainly from the image positioning of the brand "Kawaii (cute)", which is very much in line with the needs of Japanese local consumers. Besides, the hand-painted style used in the Cath Kidston products is also very popular in the Japanese market.

When it comes to why we choose to focus on the development of the Japanese market, Wilson said that Cath Kidston plans to expand sales of two digit channels in the international market in the next few years, while the sales growth of digital channels in the Asia Pacific region has reached 20%, of which Japan is the most important market, while South Korea and Thailand will be the next fast growing region.

Therefore, the main Japanese market is a natural choice.

In another Asian market, China is not as optimistic as Japan.

Wilson points out that although many brands in China are profitable, their overall income is not high, and China's high rent has finally prompted them to turn more resources into a lucrative Japanese market.

So Cath Kidston will reduce the size of the retail network in China, but it will not close all stores, and China's online market is still very important.

Wilson also mentioned that because of the sharp drop in sterling exchange rate last year, the cost of the supply chain of the brand has been seriously affected.

Although Cath Kidston has some monetary hedge agreements to make up for the loss, these agreements are due to expire.

Wilson said they are considering shifting production lines to cheaper countries like Kampuchea and Vietnam.

Compared with China, the cost of pporting goods from these countries to Japan is even lower.

Cath Kidston, headquartered in the UK, was founded in 1993 by Cath Kidston herself.

The number of stores outside the UK accounts for 70% of the total, which are located in different countries and regions in India, France, Hongkong, Japan, Korea and Singapore.

In the 2016/2017 fiscal year ending March this year, sales of Cath Kidston increased by 8% to 129 million.

Among them, cooperation with Disney (Disney) and increasing the proportion of leather goods are all important drivers of sales growth.

Last October, one of Cath Kidston's shareholders and private equity Baring (baring) bought more shares from another private equity fund TA Associates, and became the largest shareholder of Cath Kidston, holding absolute control. However, the exact amount of the paction was not announced (see the report: "private equity Baring Baring holdings UK Fashion and lifestyle brand Cath Kidston").

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