BEIJING — Tod’s opened its second boutique in Mainland China here Monday, kicking off an aggressive expansion campaign that will bring 20 more stores to the country within the next five years.
The opening party brought out Beijing’s stylish set, as Chinese filmmakers, models, fashion editors and other local personalities mingled in the new store in the China World shopping center, one of the city’s two high-end retail malls. The large turnout of Beijing’s best dressed demonstrated one thing: Tod’s is serious about courting the country’s chicest customers, and they are becoming serious about Tod’s.
“So far, the response in China has been very good,” said Diego Della Valle, the chairman and managing director of Tod’s SpA, who was in town for the event. “The Chinese love high-quality brands with a long history. It puts us in a very good position in this market.”
Tod’s already is seeing massive growth in Asia, especially in the longtime luxury market of Japan. Revenues in Asia were up nearly 70 percent in the first nine months of the year, according to the company. Della Valle’s current trip to Asia, which he visits several times per year, also includes stops in Hong Kong; Taipei, Taiwan, and Tokyo, where Tod’s will unveil its newest flagship — and the largest Tod’s store in the world.
The Italian company hopes to replicate its Japanese success with the China expansion plan, which includes upcoming stores in the cities of Shenyang and Hangzhou. Of course, the recent rush of luxury brands into China means the market is flooded with foreign competition, but that doesn’t faze Della Valle. “We face the same competition everywhere in the world,” he said. “China is just more interesting now because the market is very big and the potential is very strong.”
Tod’s arrival in China, however, comes later than most. Many of the brand’s China World neighbors — including Prada, Celine and Lancel — have had a much longer presence in Beijing. Some foreign luxury labels, such as Louis Vuitton, have been building their brands in China for more than 10 years. Until now, Tod’s has had only one store in China, a Shanghai boutique that opened about two years ago.
Related Articles
You May Also Like
“I really think this is the best time to start developing in China,” said Della Valle. “Ten years ago, it was probably too early for us. But now, the media is ready. The locations are ready. The right moment is now.”
It’s clear that Tod’s is watching its China ventures very carefully. Earlier this year, the company ended a partnership with a Hong Kong agency on the Shanghai store, preferring instead to directly oversee it and the new Beijing boutique. Future stores in China are being planned under a joint venture with Hong Kong-based luxury distributor Dickson Concepts.
“Dickson has a lot of experience in the Chinese market, and that will help us a lot, especially in cities outside of Beijing and Shanghai,” said Della Valle.
The high number of local trendsetters at the Tod’s opening is an indication that the market in Beijing — if not the rest of the country — is prepared to welcome new, sophisticated brands. Previously, Chinese consumers have tended to embrace brands with large, recognizable logos, which tend not to be found on Tod’s leather goods and footwear.
Della Valle thinks the markets within China also are changing rapidly. “Shanghai arrived first, and then Beijing, but the rest of the country is developing very quickly,” he said. “Shanghai may be the most international city right now, but in the next few years, that is going to change.”