In order to expand in Asia, the renowned Barcelona-based brand Desigual teamed up with the firm E-Shine to strengthen its presence in China through this local partner.
The agreement determines the creation of a joint venture that will allow Desigual to fully enter the Asian market. Initially through the opening of more than 60 stores and, of course, through online commerce.
This alliance aims to achieve a turnover of 40 million euros in five years.
This is a historic agreement, as it is the first time in the 38 years of life of the Catalan fashion brand that an international expansion strategy has been carried out.
According to Desigual, this strategy will allow it, through its local partner, to learn about Chinese consumer preferences and purchasing habits.
In addition, E-Shine offers the great advantage that it already has an excellent market positioning in China and extensive experience in representing other international fashion brands.
Currently, for example, E-Shine is one of Septwolves Industrial’s partners. This is a fashion company listed on the Shenzhen Stock Exchange and one of the most recognized in the fashion industry in Asia.
Barcelona-based brand Desigual now in China
Half of the estimated five-year turnover (40 million euros) is expected to be obtained from online sales and the other half through physical stores.
The first to open will be Flagship style stores in Shanghai and Beijing, i.e. experience stores that will be the most emblematic and important of the brand.
Alberto Ojinaga, CEO of Desigual, said that the alliance not only seeks to enter the business in China but also in other Asian markets such as South Korea and Japan.
For Desigual, however, the Chinese market is not so unfamiliar. Its founder and director Thomas Meyer, during the first decades of the brand’s foundation, established a presence in China with two stores in Shanghai.
This experience lasted only two years and in 2014 it withdrew from direct sales and concentrated on e-commerce sales through Tmall.
Tmall is the Asian country’s leading retail website.
Desigual’s international market
Asia represents 6.5% of the Barcelona-based brand’s international business. In this percentage, the leading market outside Europe is Japan, which in turn ranks fifth worldwide in terms of sales volume.
The group’s strategy is to ensure that by 2023, sales achieved in countries outside Europe and those achieved through digital channels will account for 60% of turnover.
