Companies

Dongxiang expects H2 sales to exceed 20%

(Agencies)
Updated: 2010-08-31 16:46

China Dongxiang Group, owner of the rights to sportswear Kappa in China, expects second-half sales to grow more than 20 percent with the opening of more stores outside the country's first-tier cities, Bloomberg reported.

The Beijing-based retailer, whose first-half sales rose 15 percent, plans to open more than 300 stores in China's third- and fourth-tier cities in the second half, according to Bloomberg citing Chief Executive Officer Dennis Qin.

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Qin also said Dongxiang is in talks to acquire sportswear brands in Europe and the US that are suitable for the consumer market in China.

Other leading sportswear makers, such as Nike and Adidas, are also readjusting marketing strategies, ready to expand into lower-tier cities.

Dongxiang's net income in the first half climbed 8.9 percent from a year earlier to 786 million yuan ($116 million), and sales rose 15 percent to 2.15 billion yuan, the company said Aug 25. It had 3,820 retail outlets in China as of June 30, an increase of 309 stores, or 8.8 percent, from the preceding six-month period.