Maesa's China subsiduary to open as sales leap

By Guy Montague-Jones

- Last updated on GMT

Related tags Maesa Subsidiary Corporation

France-based Maesa will open its Chinese subsidiary in the coming
weeks after announcing an 80.5 per cent sales increase for the
semester.

The creation of its subsidiary in Shanghai is part of the contract manufacturer's rapid expansion plan that also saw the company change its name from Parfum d'Image in January.

With the more international sounding name the company intends to become a truly global player.

Acquisition boosts sales Indeed Maesa has already taken steps down that road having acquired US-based Latitudes in December last year.

With Latitudes' sales being $22m (€14.8m) for the financial year ending in September 2007, their inclusion in the Maesa's results for the six months ending 31 March significantly swelled the firm's top line.

Turnover shot up to €13.6m from €7.5m for the same period last year while the profit figures remain under lock and key until the full financial results are published on 10 June.

Commenting on the sales figures the company said that it continued to enjoy strong demand from its existing clients and successfully pursue contracts with large new customers.

Highlights for the last six months include the launch of ranges for Canada-based Hudson Bay Company and Carrefour.

Benefits of China subsidiary Looking to the future Maesa expects to benefit from the opening of its new subsidiary in China.

Although the company already has a purchasing office in the country it says the subsidiary will optimise its sourcing from the country, reinforce product development on a local level and assure product quality.

The subsidiary will also be able to invoice American and European clients directly from China if required.

In the coming months Maesa is pursing further sales growth through diversification into packaging and the establishment of new accounts with large retail outlets.

In an effort to reinvigorate its British subsidiary, the company is also recruiting a new sales director for the country.

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