Richemont looks east

Cape Town - Luxury brands group Richemont Securities [JSE:RCH] is looking to reinforce its presence in China.

Writing in Richemont's annual report released on Wednesday, chairperson and CEO Johann Rupert pointed out that the Asia-Pacific region had been significantly less affected by the global crisis than was initially feared.
 
He said Richemont's maisons (brand houses) were already well positioned in the region and in the growing market of mainland China.

"Our strategy in China is to continue to develop our distribution network, and to ensure that we are able to offer customers a high-quality shopping experience in keeping with the values of the Maisons."

Rupert said Richemont had established its own distribution infrastructure to service the market, and had set up a comprehensive after-sales service organisation as well as training schools to develop skills for staff in China.

Rupert disclosed that of the 21 net boutique openings by flagship Maison Cartier during the year, seven were in mainland China and three in the Middle East.

He said that at the same time 25 boutique renovations had been undertaken in the region. "The development of the Cartier network in the high-growth economies of Asia and other emerging markets balances the maison's long-established position in Europe."

Overall, he reiterated that Richemont had weathered the economic crisis to date, and was in a strong financial position. "Our businesses reacted quickly and positively to the downturn in demand and have grown market share.

"They are ready to capitalise on growth opportunities in new markets and to meet demand in established markets once the economic situation improves."

Rupert said sales in the first quarter of 2010 continued to follow the trend seen in the pre-Christmas period, with sales in April 24% up on the previous year's depressed levels.

 - Fin24.com

*The writer holds shares in Richemont.