Cosmo Lady Holdings Co. Ltd. (02298.HK) is planning to expand its men’s underwear business this year to tap into a high-growth market, the Hong Kong Economic Journal reported Monday, citing chairman Zheng Yaonan.
The Dongguan-based lingerie maker hired Chinese artist Huang Xiaoming to pitch its men’s line. The distaff section has Taiwanese model and actress Lin Chi-ling as an endorser.
Men’s underwear posted a compound annual growth rate of 20.8 percent from 2011 to 2013, the company said in a prospectus ahead of its listing debut in Hong Kong on Thursday.
Zheng said the company introduced its men’s line five years ago and received a positive response from the market.
Cosmo Lady will diversify its product mix into teen and children’s clothing and simplify its supply chain and distribution channels, Zheng said.
The company will use part of its listing proceeds to establish logistics centers in Dongguan, Tianjin and Chongqing.
At the end of last year, it had 5,790 shops in mainland China, 5,069 of which were franchised stores.
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