Tommy Hilfiger is considering its future approach to China

Tommy Hilfiger is considering its future approach to China

Tommy Hilfiger is keeping tight-lipped concerning details of its future role in China following the announcement yesterday (31 March) it is to assume direct control in the country.

The Netherlands-based fashion group is to take control of its wholesale and retail distribution in China from licensee Dickson Concepts (International) from next March.

"We are currently exploring a number of options regarding our future approach to China," said a Tommy Hilfiger spokesman.

"Nothing has been finalised since the transaction with Dickson Concepts will only close on 1 March 2011.

Despite keeping its cards close to its chest regarding specific developments in China, Tommy Hilfiger nonetheless believes the country represents a major opportunity.

"We believe that Tommy Hilfiger is quite uniquely positioned to cater to this emerging market and we expect significant growth in China in the future," added the company spokesman.

"It is hard to quantify the potential and even the exact road to unlocking such potential, but we definitely have an optimistic view on our possibilities in this market."

Dickson Concepts will continue to operate as Tommy Hilfiger's licensee in China until next February and will be the licensee for several territories in South East Asia, including Hong Kong, Taiwan and Singapore in a deal to March, 2019.

But the Netherlands company now feels it can increase growth prospects by running its Chinese operation centrally.

"Dickson Concepts did an excellent job in establishing the brand in China and positioning it for future growth," said the Tommy Hilfiger spokesman."

"However, we felt that our effort to accelerate growth would be more realistic if it could benefit from our direct investments and our support in its broadest sense."