British fashion label Paul Smith is to open its first Chinese store in Shanghai, aiming to capitalise on the mainland’s booming brand name clothing market.

A 5000 sqft flagship in Shanghai is expected to open in December. Balbina Wong, CEO of Imagine X Group, Paul Smith’s distributor in China, said future plans for the British fashion label include 24 new locations across the mainland over the next five years.

Wong said Paul Smith’s entry to China is perfect timing with management consulting giant Boston Consulting Group forecasting the clothing market in China will increase to 1.3 trillion yuan (US$206 billion) by 2020 – three times the size of 2010. 

Chinese high-end spenders are also a big lure for Paul Smith. The disposable income in China’s urban areas rose by 14 per cent to around 21,810 yuan (US$3450) last year.

Paul Smith will be competing with other international brands such as Burberry, Michael Kors and Hong Kong retailer Trinity.

“This is the right time to join the race,” said Wong. “Chinese consumers are becoming more sophisticated and brand conscious. China’s overall GDP may slow, but the middle-class is growing.”

Paul Smith, whose clothes have been worn by the likes of George Clooney, David Beckham and Jude Law, has locations in 26 countries around the world. In Asia, the fashion label is present in Hong Kong, Japan, South Korea, Taiwan, India, Thailand, Singapore, Malaysia and the Philippines.

Imagine X Group, headquartered in Hong Kong, is a brand management and distribution company with a strong presence in Greater China. The group now represents around 20 international brands and operates 450 points of sale in more than 50 cities in Asia.

GB