Pierre Cardin to sell certain permanent licenses in China
30 Jun 2009
French fashion brand Pierre Cardin is planning to license some brands permanently in China for which it is in negotiations with Chinese firms.
A spokesman for the French label owner said the company had several agents in China and had been in negotiation with some who were keen on acquiring licences for the last two months.
Pierre Cardin plans to sell 32 licenses in China.
According to media reports, the most prominent bidders are, Guangdong-based Jiansheng Trading Co Ltd and Cardanro, and Zhejiang-based Aokang Group, who are said to be offering 200 million euros ($280 million) to purchase the Pierre Cardin licenses.
Jiansheng is a marketing agent for Pierre Cardin's shoes, leather goods and trolley cases in China. Aokang is one of the largest private shoemakers in China while Cardanro is into leather products such as ladies handbags, men's handbags and briefcase.
Reports say Pierre Cardin, who founded the group, will turn 87 in July and his health is among the reasons for the company planning to hive off its Chinese licenses this year.
The company yesterday denied media reports that it was selling the overall brand, instead clarifying that the sale was only a licensing deal Chinese companies but only certain licenses. The company would do a similar deal like they did in Japan some 15 years ago.
Pierre Cardin was one of the first Western fashion brand to enter Chinese market in 1978, shortly after China launched its economic reforms.