China’s Yishion enters India, eyes 100 stores in two years

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Chinese apparel retailer Yishion has formed a 51:49 joint venture with a local distribution firm to launch its line of clothing in India, targeting a presence in more than 100 outlets in two years. The new venture will launch its range of menswear and womenwear initially and expand portfolio to include kidswear, footwear and accessories by next year.

Yishion plans to import the products from its manufacturing plant in China and will target the mid to premium price segment.

“We have analysed the market for two years and are now ready for it,” said Yishion Group vice president Zhou Juntao. The $12-billion company owns the majority stake in the joint venture firm Hongluan Trade with Delhi-based marketing and distribution firm Upmarket Group owning the rest of the equity. The local partner also markets brands like Pepe Jeans, Lee Cooper and Adidas.

Although foreign companies are restricted from entering Indian retail sector, companies are allowed to form 51:49 joint ventures for single brand retail operations. Yishion will sell all its apparel under its own brand. The Chinese firm plans to open ten flagship stores across India and build presence in an additional 100 point of sales through multibrand outlets by 2012.

It has already tied up with apparel and accessories retail chain Ritu Wears as a part of building presence in multibrand outlets and is in talks with Central, Pantaloons, Shopper’s Stop and Lifestyle for a similar tieup, said Mr Juntao. Yishion plans to open its first exclusive store in Delhi by September.

The company plans to garner revenues to the tune of Rs 15 crore in first year of its operation. The Indian organised retail market is estimated to be worth nearly $37.5 billion with the apparel segment accounting for nearly 40%, according to Ernst & Young.

DongGuan-headquartered Yishion has presence in 19 countries across Asia through 3,000 outlets. It operates through both company owned retail outlets as well as franchisee stores and multibrand retailers like Splash In Dubaic.

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