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Chinese firms vie for Cardin brand

By Li Jiabao (China Daily)
Updated: 2009-06-30 08:02

French fashion giant Pierre Cardin is planning to sell its brand and permanent licenses and will "give the priority" to its Chinese agents, a company official, said yesterday.

"We are in talks with a few Chinese companies. Since we have so many agents in China, we will give priority to these agents," Ying Hao, assistant to director of Pierre Cardin's Beijing Office, told China Daily.

Ying declined to name the companies. But media reports said yesterday that two Chinese shoemakers, Jiansheng Trading Co Ltd from Guangdong province and Aokang Group from Zhejiang province, are the most prominent bidders. China Business News reported that the two companies had offered 200 million euros ($280.66 million) to acquire the Pierre Cardin brand.

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The news immediately created a stir as Pierre Cardin was one of the first Western fashion brands to enter China in 1978 soon after it launched the economic reform and opening up policies. China is one of the world's largest shoe manufacturing countries, but most of the companies are original equipment manufacturers for foreign shoe brands.

Aokang Group, based in Wenzhou, yesterday declined to comment on the report. A staff surnamed Li from the legal affairs department of Guangzhou-based Jiansheng Trading denied the report, saying it has no plan to do so.

Aokang, with annual sales of over 5 billion yuan ($731.89 million), is one of the country's largest private shoemakers. Jiansheng is an agent for Pierre Cardin's shoes, leather goods and trolley cases in China.

Pierre Cardin, creator of the brand, has not exactly been in the pink of health this year. "The reason for selling the brand is multifold," Ying said, without giving details.

European media had reported at the beginning of this year that Cardin, struggling with flagging sales, planned to sell his company at 1 billion euros.