Top Spanish fashion brand expands in Hong Kong

Gagan (HK) Ltd, the franchisee of the well-known Spanish fashion brand "Mango" has significantly expanded its operations in Hong Kong. It now has six stores operating in the city's major shopping malls.

Gagan, a subsidiary of the Singaporean-based distributor and retailer RSH Ltd, opened its first Mango store in Hong Kong three years ago, and now employs some 80 staff in Hong Kong.

Mango, PUNTA FA, S.L., is an internationally renowned company that designs, manufactures and markets reasonably priced clothes and accessories for women.

Based in Barcelona, it is the second largest Spanish exporter in the textile sector. From its beginnings in 1984, Mango has grown to over 600 stores in nearly 70 countries throughout Europe, Asia, Africa and South America.

The Chief Executive Officer of Gagan, Mr Kesri Singh, said the company had increased its presence in Hong Kong because, as an international cosmopolitan city, Hong Kong was an Asian trendsetter.

"Therefore, it was imperative that we emphasise Hong Kong as part of our long-term strategy for developing the brand in Asia," he said.

"The Mainland market is growing and becoming more sophisticated. It is a competitive advantage for retailers based in Hong Kong to become familiar with the shopping habits and preferences of customers from China before entering that market."

Mr Singh said the company had already invested US$5 million in Hong Kong for Mango and would continue to explore adding more stores within the existing brand portfolio, as well as looking into the possibility of new concepts.

The Associate Director-General for Investment Promotion at Invest Hong Kong, Mr Simon Galpin, said the successful launch of the brand in Hong Kong -- and the numerous other labels that had opened new stores this year -- provided excellent examples of the unlimited potential for strong, unique brands to grow and thrive in the city.

"Hong Kong people love fashion. Their demand for high-quality clothing has helped make Hong Kong one of the trendiest and most lucrative fashion markets in the world. Despite our small size, Hong Kong is frequently the first and only city in the region targeted by world-famous fashion designers for establishing their brand in the region," he said.

In addition to retailing and showcasing fashion brands, Hong Kong also is an ideal trading platform for purchasing, outsourcing, manufacturing, distributing, designing and developing fashion products.

Mr Galpin said the recently signed free trade agreement with the Mainland provided several advantages for companies in the textile and garment sector. For example, it permitted 36 Hong Kong-made clothing items that qualify under CEPA's rules of origin to secure duty-free access to the Mainland with effect from January 1.

This compares with tariffs ranging from 14% to 21.3% for similar items not produced in Hong Kong. In the area of distribution services, Hong Kong retailers will be allowed to establish wholly owned trading and retailing enterprises with a lower minimum entry threshold in China.

Ends/Tuesday, December 16, 2003