Ambitious plan for Playboy China
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Playboy is using its massive brand awareness in China to drive an expansion of its apparel range and enter new retail categories.
US-based Playboy Enterprises has signed a new 10 year licensing agreement with Handong United to manufacture and distribute an expanded assortment of men’s and women’s fashion apparel, including casual fashion apparel, formal and casual footwear, and accessories, such as belts, bags, backpacks, wallets, and travel luggage. Leveraging Handong’s broad distribution network, Playboy is expected to further expand beyond its current reach from 3100 retail touchpoints in China’s mainland to 3500.
Playboy China boasts a 97 per cent brand awareness among Chinese consumers according to research house Penn Schoen Berland.
“We’re proud of the fact that the Playboy brand has achieved household status as the one of the most recognised and popular brands in the world’s leading retail market,” said Scott Flanders, CEO, Playboy Enterprises.
“To achieve this leadership position without ever having a media entity in China is a testament to the tremendous power of our brand. China is one of our most important markets and we’re committed to working with the highest calibre of partners to develop premium quality products to connect our brand to the future generation of Chinese consumers.”
Playboy has been building its business in China for 20 years – without any of the printed or digital products it may be best known for in its US home market. In China it is purely an apparel brand and has licensing deals for other products.
“Playboy China boasts a 97 per cent brand awareness among Chinese consumers according to research house Penn Schoen Berland.”
Playboy China generated US$5 billion in retail revenue over the last decade and last year achieved $1.5 billion in retail sales worldwide, more than one-third of that in China. The company wants to achieve revenues of $10 billion during the course of its new partnership with Handong United.
The brand continues to generate momentum through its portfolio of long time partners in apparel, footwear, luggage and accessories, who actively market the brand through its Physical and VIP sub-brands, which have 1000 and 180 points-of-sales respectively.
“Playboy has demonstrated success in building a loyal consumer base by introducing a variety of modern apparel and accessories with a renewed focus on attracting a younger male and female consumer base,” said Matt Nordby, president, global licensing and chief revenue officer with Playboy Enterprises.
“We’re enhancing our licensing portfolio with long-term, brand-enhancing partners, and Handong United is a partner that can deliver a premium and superior product quality. We look forward to teaming with Handong to design and create new products to further grow our China presence and reach the younger fashion-conscious Chinese consumer.”
Xiaojian Hong, executive officer of Handong United described Playboy as “one of the most famous and treasured brands in China” and a “must-have fashion choice” for men and women across the Mainland.
Elsewhere in Asia and beyond, Playboy has been expanding its existing audience base and attracting a new generation of consumers by revamping and refining its licensing portfolio, partnering with Lane Crawford in Hong Kong, Beijing and Shanghai, Isetan in Tokyo and Marc Jacobs globally.
Questions & Answers
Q.What is the primary goal of Playboy's new agreement in China?
What is the primary goal of Playboy's new agreement in China?
The primary goal is to expand its apparel range and enter new retail categories, aiming to increase retail revenue to $10 billion during the new partnership with Handong United.
Q.How much retail revenue did Playboy generate globally last year, and how much of that came from China?
How much retail revenue did Playboy generate globally last year, and how much of that came from China?
Playboy achieved $1.5 billion in retail sales worldwide last year. More than one-third of that revenue, approximately $500 million, was generated in China.
Q.How does Playboy operate in China compared to its home market?
How does Playboy operate in China compared to its home market?
In China, Playboy operates purely as an apparel brand with licensing deals for various products. It does not have any of the printed or digital media products it is known for in the US.
Q.Which partner is responsible for manufacturing and distributing the expanded apparel range in China?
Which partner is responsible for manufacturing and distributing the expanded apparel range in China?
Handong United is responsible for manufacturing and distributing the expanded assortment of men’s and women’s fashion apparel, footwear, and accessories in China.