Japan's Fast Retailing Co., operator of the Uniqlo casual-wear chain, said it will set up a wholly-owned unit in Shanghai to boost its presence in the Chinese market. Fast Retailing, which operates seven stores in mainland China, also said it plans to open a large store in Shanghai on 9 December.
The company is moving away from a slowing domestic market, and overseas growth is key to its future, as it hopes to take on global giants like Gap, Hennes & Mauritz, and Zara. The company had tried to buy Giordano International Ltd., but gave up in September citing Giordano's falling profits and lack of enthusiasm for a deal.
Fast Retailing currently runs Uniqlo shops in China through a joint venture with Chenfeng Group, generating $12.7m in sales in the year ended June 2006, but posted a net loss of 90m yen. The new subsidiary, Fast Retailing (China) Trading Co. Ltd. will have a capital of $6.25m, and will take over the Uniqlo business in China from the joint venture. Fast Retailing will sell its 71.435 stake in the venture to the partner.
Namnews - Thursday 16th November 2006
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