bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

helpersCheckIsPostiesArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

moreOnThisArticles

urlAlias

commentCount

sponsorType

authorLocations

authors

paywallTypes

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

socialHeadline

headline

flag

firstTopic

glossary

flattenTypeIds

publishedDate

additionalInfoBoxes

images

image

relatedLinks

relatedNewsletters

__typename

createdDate

sponsor

factSheets

series

knowledgeQuestion

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

copyrighted

customTimezone

liveContents

Andy Chen

Retailer widens product categories

Bossini International Holdings  said  same-store sales dropped  9 per cent last year, prompting the casual-wear retailer  to increase product categories and cut the number of loss-making mainland and Taiwan outlets.

The drop in comparable store sales for the year ending last month was the same as the  9 per cent fall posted in the first half  amid intensified competition, according to chief executive  Kathy Chan.

'The third quarter was the worst of the year, while the fourth quarter was the best of the year,'  Ms Chan said, without giving figures.

'Overall, sales performance for the year is  similar with the trend in the first half,' she added.

Net profit fell to HK$6.41 million in the six months to September from HK$45.21 million a year earlier, while turnover fell 2.7 per cent to HK$969.98 million, prompting the company to carry out a brand revamp.

Ms Chan said the company, which used to focus on youth apparel products, would roll out its new product categories, including maternity and child wear, to strengthen its brand image as a 'family-fit' brand.

Bossini  had allocated about HK$80 million for rebranding in the 2007-2008 financial year, the same as in the previous year, she said.

The revamp will include changing store layouts and boosting annual collections to 12 from eight.

The retailer will close up to 40 outlets on the mainland and 30 outlets in Taiwan this year as it seeks to turn around the loss-making operations by next year.

Ms Chan said the company had expanded too rapidly in the mainland last year and   political uncertainties in Taiwan could affect consumer appetite.

Bossini had 605 stores on the mainland and 113 outlets in Taiwan at the end of September last year.

Its operating loss in Taiwan  widened to HK$21 million for the six months to September from a HK$6 million net loss a year earlier.

First-half operating loss on the mainland was HK$12 million,  compared with  a HK$1 million operating profit  a year ago.

The retailer sells products under Bossini, its lower-end brand Sparkle and its higher-end brand Bossini Style.

'Most of the stores to be closed are our Sparkle stores,' said Ms Chan.

She also  revealed plans to sell Sparkle products  in Hong Kong and other Asian markets to  boost Bossini's overall brand image. At present, the brand is being sold on the mainland only.

The move is similar to rival Giordano International's rolling out of its higher-end brand Giordano Ladies  to lift the company's brand image.

Bossini Style's average selling price is 30 per cent higher than that of Bossini, according to Ms Chan.  She also said that although she did not see H&M as direct competition, the Swedish brand's entry would nevertheless have an impact because 'the mass apparel market in Hong Kong has little room for growth'.

She said the entry of European apparel retailers  might 'educate'  Hong Kong consumers to demand more in terms of shopping experience and product designs.

Shares in Bossini, which  have dropped 24.3 per cent in the past 12 months, closed unchanged at 53 HK cents on Friday.



Hong Kong’s billionaire Cheng family seeks to oust Giordano CEO Peter Lau after failed buyout

Tycoon Henry Cheng’s offer for Giordano collapses after receiving insufficient shareholder acceptance

Hong Kong billionaire Henry Cheng’s family aims to take control of apparel retailer Giordano

Giordano sets out to erase memories of past mistakes

Giordano

Bossini to close its loss-making stores as sales decline