Shangpin may raise up to US$150 million to bankroll Topshop’s brick-and-mortar China foray

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Topshop, regarded as being late in building a global retail network, is set for an aggressive expansion in mainland China beginning in 2017

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Topshop and Topman will make their debut in mainland China in the form of brick and mortar stores by early 2018. Photo: Reuters

Meng Jing

Published: 5:27pm, 21 Dec 2016Updated: 11:00pm, 21 Dec 2016

Topshop’s Chinese partner Shangpin.com is seeking to raise between US$100 million and US$150 million to support the British high street chain’s first brick-and-mortar push into mainland China with a goal of opening more than 100 outlets in five years.

David Zhao, founder and CEO of the Beijing-based online fashion retailor, said the money will be used to lay a solid foundation for the opening of Topshop and Topman stores and the inaugural launch is expected to be in the fourth quarter of 2017 or early 2018.

“The early-stage investment [for the offline stores] will be made by both of us. For the future expansion, we haven’t ruled out the possibility to set up a joint venture for the mainland business,” Zhao said in an interview with the South China Morning Post.

Topshop’s flagship Hong Kong store debuted in June 2013. Photo: Reuters

Topshop, recognised for its youthful designs and collaboration with fashion icons, including supermodel Kate Moss, announced in London last week its partnership with Shangpin.com to set up offline chain stores in the world’s fastest-growing retail market. Topshop apparel has been available online in China since 2014 via Shangpin, which has 30 million registered users.

Fast fashion brands Zara and H&M entered the mainland market about 10 years ago and each has hundreds of outlets. Topshop, which has been comparatively slow to take its brand global, has 140 stores outside the United Kingdom. The company debuted in Hong Kong in 2013 and now operates three stores in the city.

Despite its late arrival to the mainland market, Zhao described the brand as having significant potential appeal among mainland shoppers. “Topshop, which has unique DNA in design, has been endorsed by many celebrities in the west. I can see that it has the potential to hit annual sales of 10 billion yuan in China,” Zhao said.