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Lacoste to develop China into its largest market
By Jiang Wei (China Daily)
Updated: 2004-09-20 08:50

Lacoste vows to develop China into its largest market in the world in 10 years.

"My strategy is ambitious," said Bernard Lacoste, the 73-year-old CEO of the French retailer. "We planned to increase our specialized boutiques and shops by five to 10 times in 10 years so that Chinese consumers will have easier access to Lacoste."

According to the company's predictions, 200 million to 300 million Chinese people will use Lacoste products in coming years, exceeding the number in France and Spain, its top two markets currently.

As part of its global strategic plan, Lacoste is to invest more in China by opening new sales points, attracting more customers, and making better advertisements.

Although Lacoste, son of the founder, declined to disclose the amount of the total investment in the Chinese market, he said that the business expansion is to be carried out through various channels, including direct investment, offering specialized licences, and co-operating with other companies.

In 2003, the growth rate of Lacoste's sales in China stood at 20 per cent, ranking second in its global market after the United States. The figure is predicted to climb even higher this year.

"Faster is not necessarily better," he said. "Compared with the growth pace, we attach more importance to the quality and reputation of our products, which rely on long-term factors, such as eligible machinery, good fabrics, and qualified workers."

As for its policy in China, Lacoste is not only centering on production in China to meet local market demand but also considering technology transfer and product export.

In addition, Lacoste has established closer and wider co-operation with the Chinese Government in fighting against infringement of copyrights, since China joined the World Trade Organization in 2001.

Lacoste said: "We often get information about infringements from Chinese police, customs and the Intellectual Property Office, and we use it as evidence against scores of fake crocodiles in court."

As a world renowned brand in clothing, shoes, glasses, and fragrances, Lacoste is imitated by many companies, and is involved in logo wars all over the world.

The company founded by a superstar in the tennis arena has become an official partner of China Open which is being held in Beijing this month. The action is regarded as a step of its promotion in China.

Over 400,000 items of Lacoste products were sold at its 200 sales points in China last year with total sales of about US$70 million, only a small part of its global business.

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