HUNTINGTON BEACH, Calif.–(BUSINESS WIRE)–March 10, 2003– Quiksilver, Inc. (NYSE:ZQK), today announced that it has entered into a joint venture with Glorious Sun Enterprises, Ltd. for the opening of retail stores and wholesale distribution of its products in China.
The company noted that the joint venture’s initial efforts would be focused on opening key retail locations in major retail markets such as Shanghai, Beijing and Hong Kong in order to secure a foothold in the market in advance of a wider distribution strategy. Initial plans call for the opening of 5-10 stores in the Shanghai market by late 2003 or early 2004. Nicolas Giannoli, formerly Chief Operating Officer of Quiksilver Europe, has relocated to Shanghai where he will act as Quiksilver’s Managing Director of China.
Robert McKnight, Chairman and Chief Executive Officer of Quiksilver, Inc, said, “We are very excited about this initiative. China is increasingly linked to the global youth culture. Nearly 50 million Chinese households have access to MTV, and the internet and satellite television are quickly becoming more and more available. While the development of the board-riding culture is still in its infancy in this market, indoor snowparks and skate shops are beginning to show up in a number of high-profile locations. We believe that the time is right for our lifestyle message, and are confident that it will resonate strongly with young consumers in this strong and fast growing market.”
Charles Yeung, Chairman and Chief Executive Officer of Glorious Sun Group said, “We are excited about the opportunities presented by Quiksilver’s strong lifestyle brand combined with Glorious Sun’s capability for execution and experience in China. Glorious Sun Group has been a leading apparel manufacturer in the U.S. market for the last quarter century and has recently become one of the largest branded retailers in the PRC. I believe that partnerships like this are a new global business model and will ensure our place long into the future. The market in China is very strong and growing at a fast pace.”
Mr. Yeung continued, “We believe that there are tremendous synergies between our organizations that we can take advantage of to build a strong business. These exist not only at an operational and technical level, but also with regard to the close match between our respective corporate cultures, long-standing relationships in the apparel community, and clear sense of corporate responsibility. We look forward to demonstrating excellent results and building an enduring business with the Quiksilver brand.”
Robert McKnight concluded, “While we will proceed carefully and purposefully, we believe that the long-term potential of the Chinese market is highly compelling. Glorious Sun has proven that it can execute both retail and wholesale strategies very successfully, and we are pleased to partner with such a strong organization. We are also excited to begin to capitalize on what we believe is a range of growth opportunities that exist for Quiksilver throughout Southeast Asia and the Pacific Rim.”
Quiksilver designs, produces and distributes clothing, accessories and related products for young-minded people and develops brands that represent a casual lifestyle – driven from a board riding heritage. Quiksilver’s authenticity is evident in its innovative products, events and retail environments across the globe.
Quiksilver’s primary focus is apparel for young men and young women under the Quiksilver, Roxy, Raisins, and Radio Fiji labels. Quiksilver also manufactures apparel for boys (Quiksilver Boys and Hawk Clothing), girls (Roxy Girl, Teenie Wahine and Raisins Girls), men (Quiksilveredition and Fidra) and women (Leilani swimwear), as well as snowboards, snowboard boots and bindings under the Lib Technologies, Gnu, Supernatural Mfg. and Bent Metal labels. Quiksilver’s products are sold throughout the world, prrimarily in surf shops and specialty stores that provide an outstanding retail experience for our customers.
About Glorious Sun Enterprise Ltd.:
Glorious Sun Group was founded in 1974 and is now a diversified multi-national enterprise with more than 80 subsidiaries and affiliates around the world. The Group’s textiles and apparel business was listed on the Hong Kong Stock Exchange in 1996 and had 2001 net sales of over $350 million USD. The Group operates over 500 retail stores in mainland China and is the biggest foreign casual wear retailer in the country.
Safe Harbor Language
This Press Release contains forward-looking statements. These forward-looking statements are subject to risks and uncertainties, and actual results may differ materially. Please refer to Quiksilver’s SEC filings for more information on the risk factors that could cause actual results to differ materially from expectations, specifically the section titled “Forward Looking Statements” in Quiksilver’s Annual Report on Form 10-K.
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