MILAN — Italian men’s shirt specialist Camicissima has signed a 25-year licensing agreement with clothing giant Zhejiang Baoxiniao Garment Co. Ltd. for the distribution of the label’s products in China.
Since 2012, Fenicia SpA, which controls the Camicissima brand, has opened 15 stores in China in collaboration with Zhejiang Baoxiniao Garment. Following the agreement, 440 additional Camicissima stores are expected to open in the country by the end of 2019.
“To boost our expansion in China, we have decided to team up with a partner which perfectly knows the retail market, has experience in the clothing business and features an excellent management,” said Fenicia president Fabio Candido. “Our common goal is to keep the image of the brand, which is positioned in the mid-high segment of the market.”
Zhejiang Baoxiniao Garment will also manage a Camicissima e-store in China.
According to Candido, the Camicissima boutiques in China will carry shirts with three new fits designed for the local customer, who will also be able to choose between made in Italy and made in China shirts. Camicissima will offer three shirts at a total of 150 euros, or $208 at current exchange.
In China, Camicissima shirts will cost around 50 percent more than in Italy “because, while the cost of work is cheaper than in our country, commercial rents are two or three times higher,” Candido explained.
According to Zhejiang Baoxiniao Garments president WuZhi Ze, the company will spend between 40,000 and 70,000 euros, or $55,480 and $97,090, on each store.
Camicissima, which in 2013 had revenues of 50 million euros, or $68.5 million at average exchange, also plans to open 176 doors in the U.S. by December 2018. The Italian shirt company, which aims to triple its turnover within four years, is also targeting Mexico, Brazil and South Korea for further expansion, said Candido, who didn’t exclude the option of selling a stake to a private equity fund or launching an initial public offering in the next few years.