• HoF owner Sanpower has launched a global supply chain management platform that aims to spur local premium brands and products to expand into new markets.
  • This will see House of Fraser push luxury Chinese brands across its UK store network. 
House of Fraser will take on its owners new supply chain initiative

House of Fraser will take on its owners new supply chain initiative

Sanpower Group, the owner of House of Fraser, has unveiled a new supply chain initiative that will see it sell premium Chinese brands, including clothing, in the UK retailer's department stores.

Launched by the Chinese conglomerate at the first Sanpower Global Supplier Conference in Nanjing on Tuesday (10 April), the global supply chain management platform aims to spur local premium brands and products to expand into new markets.

The initiative supports the Chinese Government's 'Belt and Road' vision, which is designed to boost trade and stimulate economic growth across Asia and beyond.

Sanpower did not name the brands destined for its 59-store network, but it is understood to include everything from lingerie to electrical appliances.

Under the programme, the new new Sanpower Supply Chain and Branding Management Centre will undertake and manage House of Fraser's trade orders with the aim of increasing the breadth and depth of in-house products, while shortening product development cycle and delivery.

"Increasing numbers of high-quality Chinese products are becoming popular with British and European consumers," says Simon Pickering, House of Fraser's UK director of global product sourcing. "Once these products enter House of Fraser's sales channel, they will be able to access Europe and the greater global market, given quality and credit endorsement from House of Fraser."

Kong Jun, Sanpower's new commerce industry group CEO, says the platform will be a good way for premium Chinese products to reach the UK and Europe.

"Chinese manufacturing has transformed in recent years from extensive processing and production into a new era marked by independent designs, proprietary brands and innovation."

The move comes as concerns mount over the financial health of House of Fraser, which reported "disappointing" Christmas sales in January, and had credit insurance pulled from some of its suppliers a month later.

Sanpower is understood to have injected GBP30m (US$42.2m) of cash into the department store chain earlier this month in a move that could ease the group's strained finances.

House of Fraser receives £30m cash injection?