Nan Hai Corp. (00680.HK) is planning a big push in the mainland China market after acquiring a company that manufactures and sells skincare products under the Crabtree & Evelyn brand.
The Hong Kong-listed firm has received leasing invitations from several shopping malls in the mainland, and is planning to open its first Crabtree shop in a first-tier city, the Hong Kong Economic Journal reported.
It aims to leverage the brand image and establish points-of-sale in various retail locations, including movie theater complexes and food and beverage outlets, the report said, citing Yu Xin, managing director of Nan Hai’s subsidiary Dadi Digital Cinema.
Nan Hai plans to set up sales spots at its 270 movie theaters across the country to promote cross-sales and electronic commerce.
Crabtree & Evelyn has 30 retail shops in Hong Kong and an aggregate of 4,000 sales spots around the globe.
The brand’s sales in Asia and North America declined last year.
Yu expects profitability to improve due to integration of resources and supply chain, as well as fresh marketing initiatives, once the acquisition is completed.
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