US denim maker, 7 For All Mankind (7FAM), plans to open four more stores in China by the end of the year, in the latest expansion of a Western brand in a luxury consumer market unbeaten by the financial crisis.
The brand, which is often seen worn by actresses at popular TV shows such as Gossip Girl, Sex and the City and Friends, has shops in Beijing, Shanghai, Wuhan, Dalian, Hangzhou and Chengdu.
Beijing and Shanghai will get one more store, Raffaele Germano, vice-president of VF Asia Ltd, told China Daily in an interview on Wednesday. The locations for the other two new stores were not decided, he said. But they will help bring the global tally of 7FAM stores to 117 by the end of the year.
7FAM, better known as Sevens, was acquired by US lifestyle apparel behemoth VF Corp in 2007, the year 7FAM opened its first store in China. The New York-listed VF Corp also owns premier brands such as Nautica, the North Face and Wrangler.
7FAM has shifted focus from its home turf to Asian and European markets, "where we don't have a big presence", Germano said.
And that strategy paid off, the designer-turned executive said. Last year was a "blue year for everybody", but 7FAM recorded double-digit growth in China. And Germano hoped Asia could account for 25 to 30 percent of 7FAM's global sales in two years.
7FAM produces its jeans in Los Angeles, where the brand was established in 2000, with fabrics imported from Japan and Italy.
Asked whether 7FAM plans to relocate part of the production to China, where manufacturing costs are lower, Germano said the answer was "a big fat no".
"We want to keep our origin and ensure quality," he said, adding that soft and superb fabrics, well-fitting cuts, stylish washes and hand-sewn embellishments are the things consumers go for from 7FAM jeans.
Targeting buyers between 28 and 48, who are Internet-savvy, the denim maker also plans to launch online sales in China by the second quarter, Germano said, adding that prices online and in real shops will be basically the same.
Celebrity endorsement helped 7FAM ascent in the US, and the company wants to copy that success in China.
Indeed, popular Taiwan model and actress Lin Chi-ling was invited to walk shows for 7FAM in Beijing on Wednesday. Other celebrity 7FAM fans include Cameron Diaz, Jessica Alba and Scarlett Johansson.
Chinese consumers braved the worst economic crisis in seven decades to spend big on luxury brands in2009. Consultancy firm Boston Consulting Group predicted earlier this month that China's luxury market will be worth 248 billion yuan ($36.3 billion) by 2015, accounting for 29 percent of the world market. That will also make China the world's largest luxury market, it said in a report.
