Maternity brand Seraphine looks for China opportunities after policy change

A BRITISH maternity retailer is set to crack the Chinese market and capitalise on an impending baby boom after the country’s Communist government ditched its one-child policy earlier this year.

Cecile Reinaud, founder of Seraphine, which has a store in Leeds, said that her company is now in advanced talks with a regional partner that would help launch its clothing line in the Asian powerhouse.

“That market, obviously, is changing very fast,” she said. “But the key thing is that the second-child policy has been passed since January, so people are really expecting a baby boom.”

When asked whether she was hoping for favourable post-Brexit trade deal with China as a result, Ms Reinaud said: “Yes, absolutely.”

The maternity fashion line – which has been worn by the Duchess of Cambridge and Angelina Jolie – exports about 70 per cent of its goods to about 100 counties outside of the UK, with the US accounting for around 35 per cent of its revenue, and Europe making up around a third.

But Ms Reinaud said she would not consider relocating her business outside of the UK in order to avoid potential tariffs after Brexit, adding that she benefits from the UK’s relatively low corporate tax rate and a less bureaucratic business environment compared to her home country of France.

Profit last grew from £1.5m to £2m last year while sales jumped 11 per cent to £15.5m. Seraphine is now targeting a further 30 per cent jump in sales for 2017 to £20m, in light of its international expansion plan and an “aggressive” marketing programme in the US.

The collapse of the pound since the Brexit vote has increased pressure on Seraphine’s margins by raising the cost of imports.

But while Ms Reinaud does not expect that Brexit negotiations will result in new tariffs between the UK and EU, the business would likely adapt by hiking prices and focusing on other markets like Asia.