Activewear retailer Lorna Jane expands in China
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Australian activewear retailer Lorna Jane is expanding into greater China as more than 10 potential investors are seeking a majority shareholding.
Around 30 per cent of Lorna Jane’s more than $200 million in annual revenues comes from its online platforms in China. Its sports bra product is the top seller in its category there. It currently has 2.5 million followers on social media.
The business is currently assessing its options, while announcing last month the hire of KPMG to review the company’s strategies. KPMG has commented that the business is “performing extremely well”.
The company is facing competition from gym-wear retailers such as Gymshark and the increasing shift in society of people wearing sportswear as streetwear. Co-owner Lorna Clarkson says activewear has now become ready-to-wear. “There’s now a blurred line between fashion and sports apparel.”
CEO Bill Clarkson said that most likely within the next 12 months “our aim is to eventually open stores in China and Hong Kong,” depending on who the firm’s partner ends up being. It is currently in the process of reducing its physical store network in Australia due to high rental costs.
Questions & Answers
Q.What proportion of Lorna Jane's annual revenue is currently generated from its online platforms in China?
What proportion of Lorna Jane's annual revenue is currently generated from its online platforms in China?
Approximately 30 per cent of Lorna Jane’s annual revenues, which exceed $200 million, come from its online platforms in China. This highlights the significant contribution of the Chinese market to their overall performance.
Q.What is Lorna Jane's strategy regarding physical stores in its domestic market, Australia?
What is Lorna Jane's strategy regarding physical stores in its domestic market, Australia?
Lorna Jane is currently reducing its physical store network in Australia. This decision is being made due to the high rental costs associated with maintaining brick-and-mortar retail locations in its home country.
Q.Which product category is Lorna Jane's top performer in the Chinese market?
Which product category is Lorna Jane's top performer in the Chinese market?
The company's sports bra product is identified as the top seller within its category in China. This suggests a strong market presence and consumer preference for this specific item among Chinese customers.
Q.What is the company's long-term plan for expansion into China and Hong Kong?
What is the company's long-term plan for expansion into China and Hong Kong?
CEO Bill Clarkson stated that within the next 12 months, the aim is to eventually open physical stores in China and Hong Kong. This plan is contingent on securing a suitable firm partner for the expansion.
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