Hong Kong-based luxury retailer The Swank plans to speed up its expansion in the mainland by targeting second- and third-tier cities.

The Swank GM Tony Lam said the retailer’s plan to expand in China is motivated by the success of its Beijing store which has grown at an annual rate of 25 per cent since opening in 2009 on Jinbao Place.

“In 2012, The Swank will open its first stores in Xi’an and Hangzhou. And in the next five years, we will open at least five stores in the mainland,” said Lam who added they expect the same growth for future mainland stores.

The Swank will be cashing in on China’s booming luxury market which is predicted to reach 570 billion yuan (US$90.34 billion) by 2015 from approximately 220 billion yuan (US$34.94 billion) in 2010.

According to US market consultancy firm Frost & Sullivan, second- and third-tier cities are attractive for luxury retailers as first-tier cities are now plagued by overcapacity. Over the next five years, Chinese luxury spenders are also expected to increase to 160 million from 40 million currently, said Frost & Sullivan.

Wholly owned by ENM Group, The Swank was established 57 years ago. The luxury multi-brand fashion house operates four boutiques in Hong Kong and one in Beijing, plus nine monobrand boutiques including Brioni, Brunello Cucinelli, Just Cavalli, Paule Ka, Roberto Cavalli and Sonia Rykiel. The Swank also represents Givenchy, Yves Saint Laurent, Valentino, Ermenegildo Zegna and Christian Lacroix.

GB