Desigual expands its borders in search of recovering sales that have fallen since 2015. The Catalan company has focused on Asia to grow and China stands as one of the priority markets in which to increase its business. The company has been present in the country since 2014, but now it is drawing up a plan to reach a turnover of 40 million euros and open up to 60 stores in the next five years.
The organization founded by Thomas Meyer announced on Tuesday the creation of a joint venture with the Chinese E-Shine to develop both online and physical business in the Asian giant. Desigual’s new ally is one of the shareholders of Septwolves Industrial, a fashion firm listed on the Shenzhen stock exchange.
With the association, the Spanish company aims to reach sales of 40 million in five years: half would come from the digital business and the other half from the stores. Although e-commerce platforms are the main reason for the agreement, the opening of new stores in Shanghai and Beijing is planned. In five years, the number of 60 stores would be reached.
“The collaboration is in line with the strategy of developing the business in the Asian market, growing in China, Japan – Desigual’s first market outside of Europe – and South Korea,” said the firm’s general manager, Alberto Ojinaga. Asia today represents 6.5% of the company’s international business thanks mainly to Japan, which is the fifth largest country in the group worldwide.
The importance of Asia for Desigual
The pact also reinforces the digitization of the firm. “Our goal is for sales generated through the digital channel and those from geographies outside Europe to jointly represent 60% of turnover in 2023. Right now this percentage is 49%,” added Ojinaga.
Desigual has been in China since 2014, when it began selling through the Tmall platform. In 2021, it went a step further with various communication campaigns, but it has not been until now that it has made its definitive commitment to the country. It does so through a local partner, something that theoretically should make it easier for you to land by knowing the market.
“Knowledge of consumer habits and preferences in the Chinese market is key to success. Our goal is to grow even more in the digital environment and get closer to new customers with products designed for them and adapted to the characteristics of the market”, settled Ojinaga.
Mark Phil is a former market analyst and consultant. Mark in his 9-year career as an analyst, worked with top market players like Prodge LLS, Westat Inc. and Precision Opinion Inc. He moved towards writing in the year 2013. In the past, he undertook several freelance projects to begin his writing profession. Mark completed his economics degree from Columbia University. Along with performing sub-editorial duties, he is also writing a book on Market analysis.