German high-end fashion label Hugo Boss AG is cooking up plans to make China one of its biggest markets – just as growth in the country’s luxury space appears to be cooling off.
The maker of upscale sportswear and suits plans to open about 60 new stores in China’s mainland over the next three years, adding to its current 86 stores, Hugo Boss CEO Claus-Dietrich Lahrs said in an interview on Thursday. The expansion is part of an effort to boost revenue from Asia to 20 percent of the label’s global sales by 2015 from 15 percent last year, he said.
Hugo Boss joins a wave of expansion plans by other luxury names seeking to tap China’s explosive sales growth, a trend that brokerage CLSA Asia-Pacific Markets says will make the country the world’s largest luxury market by 2020.
(Source: The Wall Street Journal Online )