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Danish design brands in anything from shoes to clothes to furniture are becoming a big hit among the 100 to 300 million-strong Chinese middle class. Since the mid-1980s the average salary in China has risen from around 300 USD to approximately 2,000 USD, giving more and more Chinese consumers enough room in the budget to start shopping for foreign quality brands, and making private consumption the main reason for the Middle Kingdom's 11.4% economic growth in 2007, ahead of investments and exports.
One of the Danish brands enjoying China's spending spree is shoe manufacturer Ecco: "China is one of Ecco's fastest-growing markets. From 2006 to 2008 we've managed to double our turnover, so that by the end of this year we'll have an annual turnover of more than 300 million DKK," says Michael Hauge-Soerensen, CEO of Ecco Asia. Ecco currently operates 331 stores in 126 Chinese cities.
Another Danish success story is children's-furniture manufacturer FLEXA. The company recently cut the red ribbon for its 75th store in China, and logged a 20% growth in year-on-year revenue in 2007: "The number of Chinese consumers with greater earnings is just getting bigger and bigger, and doing it quickly. And because we've targeted that group, we've been handed some very good opportunities for selling more products," says FLEXA corporate CEO Per Lykke Jensen. Both Ecco and FLEXA agree that the underlining of the companies' Danish roots, and a strong emphasis on design, is key to achieving success on the booming Chinese market.
Full story in Danish
News category: Denmark
Published on this site: Jul. 13, 2008
Source:dr.dk/nyheder/penge
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