HK luxury fashion retailer to tap market in Beijing

Hong Kong fashion retailer Lane Crawford said today it will open a three-story shop in Beijing that sells more than 600 designer brands like Prada and Stella McCartney, tapping the growing demand for luxury goods in China.

The 300 million Hong Kong dollars (US$38.3 million) store, encompassing 7,200 square meters, will open in October, Lane Crawford President Jennifer Woo said at a press conference.

"With the ever increasing number of high net worth individuals and affluent customers supported by an inspirational market of approximately 4 million in Beijing, we believe there are exciting opportunities for Lane Crawford in this market," she said.

The number of affluent Chinese customers is growing by 19 percent a year, said Bonnie Brooks, president of Lane Crawford Joyce Group, the parent company of Lane Crawford owned by property tycoon Peter Woo.

The parent company operates more than 450 stores in the Asian region, including 233 stores in China. The group forecasts sales in 2007-08 to exceed HK$7.8 billion.

"The customers in China, in terms of our experience, are more and more fashion-conscious," Brooks said.

Lane Crawford, the group's key business driver, is currently the leading designer fashion store in Hong Kong, with four outlets in the territory.

Woo said Lane Crawford also expects to add stores in Shanghai and the southern Chinese gambling enclave Macau within five years. She declined to provide details.