Luxury shoe brand Jimmy Choo will build on its success in China as it prepares for its IPO next month.
With the company founders, Malaysian shoemaker Jimmy Choo and businesswoman Tamara Mellon, long gone, current owner JAB Holdings is preparing for an IPO on the London Stock Exchange that will value the company at approximately £800 million. JAB Holdings will sell off a 25 percent stake in order to raise £200 million, reports Express.
The company, with 120 stores worldwide, plans to open 10 to 15 stores per year with a greater focus on China where it already has 11 stores.
Worldwide, demand for luxury footwear is outstripping that of other luxury goods such as handbags. Much of this demand is coming from China with 3 billion pairs of shoes sold in the country last year. Due to the rising Chinese middle-class, and the increase in disposable income that has come with it, footwear has become an entry point into luxury goods in China.
“Jimmy Choo is a clear success story with strong momentum and I am confident that our future as a public company can only extend our reputation and position in this attractive sector,” CEO Pierre Denis told MarketWatch.
Though the Jimmy Choo brand was made famous in the west through its appearance in the TV show Sex and the City, it was the Korean TV drama My Love From the Star that sparked the craze in China. After one of the main characters, played by Gianna Jun, wore the brand’s Abel pump, the shoe quickly sold out in the Shanghai and Beijing stores.
The company also plans to expand its online business and refurbish its existing stores. Sales in the first half of the year rose 9.4 percent to £150.2 million.
image credit: jimmy choo