MELBOURNE: Jeanswest is pushing ahead with an aggressive international expansion strategy despite the global economic downturn.
The urban denim and apparel brand is pursuing franchises in the Middle East, Fiji, South Africa, Brazil and India, in addition to its existing stores in Australia, New Zealand and China.
Jeanswest CEO Stephen Younane said the Victorian retail chain had outlined its business strategy before the global economic crisis took hold and decided to forge on.
“Consumers look to confident bra-nds in difficult economic times,” he said. “Backing down is not a good message. You have to go harder.”
Jeanswest entered the Middle East in 2007 and has since opened 17 stores. It envisages 30 to 50 stores in the region within the next five years, covering the United Arab Emirates, Saudi Arabia, Bahrain, Oman and Kuwait.
Younane said the trading climate in the Middle East had been tough for six months but was swinging back, and he was confident in the area’s potential. Fiji is next on the agenda, with the brand’s first store, a department store concession, due to open shortly in Suva.
Younane said the company did not view Fiji as a highly lucrative market but would like to build a presence there, with about six stores planned over the next three to five years.
Younane said South Africa and Brazil held great appeal as the regions were seasonally aligned with Australia.
India was attractive due to its sheer “size and scale”, he said. Jeanswest wants to open a number of stores in each country in the next few years and is currently scouting opportunities.
Younane said these plans would see the roll out of the Australian Jeanswest business model, which operates slightly differently to the model used in China, where there are 2200 stores. The brand has around 2450 stores globally.
In Australian the company will open 16 new stores this year and close eight, which Younane said was fairly routine based on individual performance.
A new flagship at Chadstone Shopping Centre in Melbourne opened this month and is home to a quirky new concept, the “butt cam”, which allows Jeanswest customers a 360 degree image of how they and their rear ends look in a pair of jeans.
Online marketing, online transactions, a customer loyalty program and advertising have all been key focuses this year. The label has also launched Selvedge, a premium collection, and re-launched a range of Japanese denim styles.