German designer brand Karl Lagerfeld has taken its first step to expand into China.

Owner Apax Partners has opened the first two of 40 boutiques planned for China over the next five years – in Beijing and Shanghai.

The 2400 sqft Beijing boutique is at Charter Shopping Centre while the one in Shanghai is located at Jing An Kerry Centre and spans 1100 sqft.

Karl Lagerfeld CEO Pier Paolo Righi says their expectations for China are high because of the nation’s “new emerging consumer group”.

“There’s a younger luxury consumer, a young fashion consumer that is looking for not-so-established brands… not the brands their parents are wearing, but something new and fresh that gives them access to a luxury world but in an accessible way,” said Righi.

He said China has the potential to be the largest market for the brand.

Karl Lagerfeld is scheduled to open four new boutiques over the next six months, including a second boutique in Beijing.

The boutiques will offer men’s and women’s ready-to-wear, leather goods, shoes, watches, eyewear and gift items along with eveningwear and cocktail dresses.

It also plans to open accessories-focused stores, it says.

Andrew Cai, a former senior VP of Burberry for China and retail director and merchandising director of Louis Vuitton in Asia, has been appointed as president and CEO of Karl Lagerfeld Greater China to lead its businesses there.