Bosideng close to buying UK apparel chain

SHANGHAI: Bosideng International Holdings Ltd, the Chinese coatmaker that runs a store in London’s West End, said it is close to buying a UK chain and has met with European luxury companies as it seeks deals on the continent.

Bosideng was close to acquiring an 80-store apparel chain in England to sell its down jackets, and was also in early talks with European highend coat brands about making a possible acquisition, Julie Sun, the company’s vice-president for corporate strategy and investor relations, said in a Sept 24 interview.

The Hong Kong-listed coatmaker, which sells down jackets and winter coats under brands such as Bosideng and Snow Flying on the mainland, is pushing to build a European presence to boost its image at home and increase sales outside China.

Close to a third of Chinese luxury buyers will shop in Europe in 2013, up from a fifth last year, according to McKinsey & Co.

“The majority of Chinese consumers still prefer Western brands and products over local ones,” Sun said. “With so many Chinese traveling abroad, if they go to New York’s Fifth Avenue, Paris, Milan and they see your store, it would help your sales and help brand recognition.”

The acquisition of the UK chain, which was privately owned and currently loss-making, would likely be completed by the end of next month, Sun said.

Bosideng would pay a minimal sum for the chain, she said, declining to specify the amount. — Bloomberg