Quiksilver, Inc. announced that it has entered into a joint venture with Glorious Sun Enterprises, Ltd. for the opening of retail stores and wholesale distribution of its products in China.
The company noted that the joint venture’s initial efforts would be focused on opening key retail locations in major retail markets such as Shanghai, Beijing and Hong Kong in order to secure a foothold in the market in advance of a wider distribution strategy. Initial plans call for the opening of 5-10 stores in the Shanghai market by late 2003 or early 2004. Nicolas Giannoli, formerly Chief Operating Officer of Quiksilver Europe, has relocated to Shanghai where he will act as Quiksilver’s Managing Director of China.
Robert McKnight, Chairman and Chief Executive Officer of Quiksilver, Inc, said, “We are very excited about this initiative. China is increasingly linked to the global youth culture. Nearly 50 million Chinese households have access to MTV, and the internet and satellite television are quickly becoming more and more available. While the development of the board-riding culture is still in its infancy in this market, indoor snowparks and skate shops are beginning to show up in a number of high-profile locations. We believe that the time is right for our lifestyle message, and are confident that it will resonate strongly with young consumers in this strong and fast growing market.”
Charles Yeung, Chairman and Chief Executive Officer of Glorious Sun Group said, “We are excited about the opportunities presented by Quiksilver’s strong lifestyle brand combined with Glorious Sun’s capability for execution and experience in China. Glorious Sun Group has been a leading apparel manufacturer in the U.S. market for the last quarter century and has recently become one of the largest branded retailers in the PRC. I believe that partnerships like this are a new global business model and will ensure our place long into the future. The market in China is very strong and growing at a fast pace.”
Mr. Yeung continued, “We believe that there are tremendous synergies between our organizations that we can take advantage of to build a strong business. These exist not only at an operational and technical level, but also with regard to the close match between our respective corporate cultures, long-standing relationships in the apparel community, and clear sense of corporate responsibility. We look forward to demonstrating excellent results and building an enduring business with the Quiksilver brand.”
Robert McKnight concluded, “While we will proceed carefully and purposefully, we believe that the long-term potential of the Chinese market is highly compelling. Glorious Sun has proven that it can execute both retail and wholesale strategies very successfully, and we are pleased to partner with such a strong organization. We are also excited to begin to capitalize on what we believe is a range of growth opportunities that exist for Quiksilver throughout Southeast Asia and the Pacific Rim.”
