In the second half of 2008, Hart Schaffner Marx, one of the biggest suit makers in the U.S., will enter the Chinese market through Youngor's mature network.
Youngor has signed a 20 year agency contract with HSM. According to the contract, Youngor will introduce Hart Schaffner Marx, HSM's major brand, into China and it will open 100 specialty stores by the end of 2008. This is the first time that Youngor has acted for a foreign brand.
Youngor has set up a wholly owned subsidiary under the name of Hart Schaffner Marx to act for the brand. Lou Tiancheng, general manager of Hart Schaffner Marx, said that over a one-year preparatory period, Hart Schaffner Marx has opened ten trial stores in Ningbo, Hangzhou, and Anhui. As the performance of these stores was satisfactory the company will focus on the development of new stores in the second half of 2008.
Hart Schaffner Marx's development schedule for China shows that the company will open its specialty stores mainly in department stores in major cities such as provincial capitals and municipalities. By 2009, the number of stores will be increased to 150 and will reach 300 three years later. The annual sales of each store is expected to be over CNY5 million.
Statistics show that the apparel sales of HSM rank first among similar products in the U.S. Apart from Hart Schaffner Marx suits, it manages and acts for more than 30 other apparel brands.