Paolo Bodo is president and CEO of Asian Operations for Sixty Group. Retail in Asia spoke to Bodo ahead of this month’s High End Retail Summit in Shanghai to find out a little more about Sixty’s brands and the company’s plans for expansion in Asia.
RIA: What brands does your company currently operate in the region?
PB: Throughout Asia we operate Miss Sixty, Energie, Killah, Murphy & Nye, and our junior line, Sixty Friends. In China we have approximately 200 retail stores, with 120+ in the rest of Asia including Hong Kong, South Korea, Taiwan and Singapore.
RIA: What types of consumer do you target with your different brands?
PB: We target a niche market with each of our brands, as we feel this enables us to cater our brands to the very specific needs of our customers. For example, for Miss Sixty we are targeting the sexy, exuberant and glamorous young woman. The idea of our Killah brand is to present Italian heritage with a Japanese twist – fresh, trendy, ironic, and very cool. And for Energie, our consumer is the bohemian, sexy, contemporary man who loves to add a vintage touch to his look.
RIA: How do differences in the way you market the brands influence your store development plans?
PB: Depending on who a mall’s target consumers are, we might choose to develop just one brand, or we might develop two or three brands in one mall. Having different formats gives us greater flexibility than our competitors who rely on a single strong brand.
RIA: How do your consumers in China and Asia differ from those in Western markets?
PB: In China, and in Asia generally, our brands are more of a status symbol for the younger generation. In some parts in Asia – China is a good example – we definitely enjoy cult brand status, especially when it comes to Miss Sixty. Remember, we were the first brand to design and fit fashion jeans for women – a service we still offer to this day.
RIA: What are your expectations for profit this year?
PB: In the past 12 months we have seen our profits increase by 10 percent, which has been exceptional given the economic challenges faced over the previous 18 months. This year we are expecting our brands to continue to provide strong growth and are targeting a 12 percent year-on-year increase on 2009.
RIA: What are your expectations for retailing in Asia in 2010?
PB: I’m very optimistic – Asia is a very important market for us and we are planning to continue to increase our presence here. We have over 100 new Asian stores planned across our brands, including more than 60 in China.
RIA: What are your key markets in Asia?
PB: Our key markets are: China, where we are a cult denim brand and want to build on our strong customer base and positioning; Hong Kong, which is a great location for retailing to people of all nationalities, as well as a window to the rest of Asia – over 40 percent of our Hong Kong sales are to mainland Chinese visitors and residents; South Korea, where we have very aggressive expansion plans and where young fashion is greatly influenced by trends in Japan; and Taiwan, where we have a very high number of stores at 26, and where we expect to see a significant influx of mainland Chinese buyers thanks to an increase in tourism.
Paolo Bodo will be attending the High End Retail Summit in Shanghai on 13-14 May.
Talking Shop is the Retail in Asia section devoted to interviews with brand CEOs and retail industry leaders.