Kathmandu on global expedition
Retailer Kathmandu will continue to expand into Europe and will branch into China to tap into the Asian market.
The company has posted a profit of $38 million for the year to July 31, up 13.5 per cent on last year.
Kathmandu chief executive Xavier Simonet said the expansion into Europe had started and China was next on the cards.
Kathmandu gear was being trialled at Go Outdoors in the UK and Sportscheck in Germany.
A new global website has just been launched and the Chinese website Timor Global would go live in the next few months.
The global website would not offer the Summit Club promotional model Kathmandu offers in New Zealand and Australia.
Simonet said he had ‘‘no idea’’ what the Chinese and global website would do for sales.
‘‘We’ve never done it before so it’s an entrepreneurial approach,’’ he said.
‘‘We’re just going to see how it goes.’’
Simonet said the number of Chinese shoppers in Australian and New Zealand stores illustrated the potential in China.
Despite extreme weather this winter, same store sales in New Zealand grew by only 3.6 per cent, compared to 7 per cent in Australia. Online sales made up 7.5 per cent of the total.
First Retail managing director Chris Wilkinson said the outdoor clothing space was crowded.
‘‘Homegrown brands [are] on the rise. Cactus, Swazi, Earth Sea Sky, Alchemy Equipment and others are developing niches for serious active consumers.
‘‘Macpac have continued to grow and in many ways have captured those consumers that treasured original New Zealand brands.
‘‘Kathmandu no longer have that to themselves. We only need to look at Mountain Designs’ total retreat from the New Zealand market a few years ago to understand the future market trends they saw ahead.’’