Sir Paul Smith, the UK fashion designer, is optimistic about his brand’s return to China, despite fears that the Chinese market for luxury goods is cooling.
Speaking for the first time since the return to China was announced in May, Sir Paul said it had been “massively disappointing” to pull out five years ago.
At the time, he branded the Chinese market as “extremely dangerous” as rents were very high and the majority of the population only wanted "clothes to cover their bodies”.
But speaking to the Financial Times in his design studio and offices in Covent Garden, Sir Paul said the Chinese market was now ready for his brand.
Five years ago, Chinese consumers “wanted things that say I’m wealthy and I’m fashionable. They wanted things with a logo on”, he said.
Now many young Chinese travelled frequently and had also become aware of the Paul Smith brand via the explosion in social media.
"There is a lot more awareness of Paul Smith now than there used to be,” he said. “There are a lot of people who are not necessarily looking for the obvious symbols of wealth or fashion. They are more looking to buy things that they know are interesting, or special.”
He added: “I am not saying it will work at all. I’m saying there is more chance now because of the awareness of Paul Smith.”
Paul Smith, which has 159 stores worldwide, will make its second attempt to crack the Chinese market with ImagineX, a sister company of Hong Kong’s Lane Crawford department store.
They aim to open 20 stores in China over the next five years. A store in Tianjin will open before Christmas, with another in Shanghai next June.
Sir Paul acknowledged that the entry may be coming at a delicate time for the Chinese luxury market, as the country’s slowing economy saps demand for luxury goods.
"With China it’s not necessarily the right time, no. That is why we are doing it so gently and so cautiously,” he said.
Sir Paul said he always looked for unusual store locations and it was “extraordinarily disappointing” that this was not yet possible in China, where most outlets tended to be in malls.
The comments came ahead of Sir Paul being inducted into the World Retail Hall of Fame at the World Retail Congress in London next month.
Sir Paul said he expected sales at his privately-owned group – he owns 60 per cent – to be “probably level” in the year to June 30. Retail sales are expected to be up 8 per cent.
Sir Paul Smith, the UK fashion designer, is optimistic about his brand’s return to China, despite fears that the Chinese market for luxury goods is cooling. 
