For many clothing retailers, overseas expansion is a natural step after gaining a strong foothold in their home base to broaden earnings and promote brands.
However, for Bossini International Holdings, a Hong Kong casual-wear chain, its early venture into the mainland market more than a decade ago has become a disappointment because of its ambitious expansion in recent years.
After opening its first store under the label 'Bossini' in 1987 in Hong Kong, the company was lauded by market observers six years later when it became one of the first movers into the mainland market.
By the end of last year, the number of its mainland outlets had grown to 552, including 358 directly managed and 194 licensed stores.
However, its sprawling network, which might have helped brand recognition, has not brought higher profits over the past couple of years.
Bossini began to suffer from losses on the mainland in 2006, and reported an operating loss of HK$19.99 million for the 12 months to March last year, against a profit of HK$6.52 million in 2006. The loss for the second half of last year was HK$7 million.
