Cosmo Lady, which has 8,600 outlets including Ordifen's 550 China stores, saw robust growth in its mass market sales last year, but warned about its profits for the first half of this year, citing China's slowing economic growth, consumer caution and competing online sales.
High-end lingerie sales are outpacing China's generally downbeat luxury market, and heating up competition between international brands and local rivals looking to go upmarket. While U.S. brand Victoria's Secret is set to open its first store, Italy's ultra-luxury La Perla and Germany's Triumph are adding stores and penetrating mainland China beyond the...#
Hong Kong-listed Embry Holdings, which owns the Embry Form lingerie brand, said its group retail sales slipped by nearly a fifth in April-June on tougher competition and the economy.
Despite those bumps, the lingerie sector retains a strong appeal, said Eugene Mak, an analyst at China Merchant Securities in Hong Kong, and firms like Cosmo Lady are still outperforming other apparel retailers.
He predicts the market will hit a consolidation phase at some time. “It's a very young market, but in the near-term it's going to be messy,” he said. (SH)
ALCHEMPro News Desk – India
marketing@alchempro.com
