Goldlion moves to recover lost ground and the halcyon days of brand leadership

Goldlion, Hong Kong's first famous fashion brand and a mainland clothing pioneer, is two years into a rejuvenation plan - and struggling.

The brand once favoured by nouveau riche red capitalists and political apparatchiks for its clothing, silk ties and leather products has fallen on hard times.

Goldlion's efforts to win over the new hip generation are being swamped by Hong Kong and international luxury fashion brands eager to flaunt themselves in front of ever more affluent and discerning mainland buyers.

But, while Goldlion has slashed advertising in response to declining sales, other established Hong Kong firms are cranking up efforts to build their mainland brand images.

Goldlion's attempt to re-invent its brand two years ago was prompted by a run of poor sales and huge losses. Results have been mixed. After racking up losses in 1999 and 2000 - and a brief recovery in 2001 - it again sank into red in the six months to June last year.

In the mid-1990s Goldlion was spending HK$35 million a year buying 35-second slots on China Central Television. Its advertising budget reached HK$80 million in 1997. It has since been slashed to just HK$20 million a year.