UK fashion brand Topshop announced on Friday that it plans to open its first store in Hong Kong in May next year, betting on both the city and mainland's fashion sophistication and purchasing power.

Lab Concept, a subsidiary of the region's top designer specialty store Lane Crawford, will manage the partnership by providing the retail space and operational expertise, including staff and logistics support, while Topshop will manage the merchandising, the two companies announced jointly on Friday.

Philip Green, owner of Topshop, said it had chosen Lane Crawford as a partner to set its footprint in the city as it values the latter's solid experience within the fashion sector, making it easier for a new-comer to get a firm foothold here.

"Hong Kong is a center of global fashion brands with diversified people and visitors travelling to the city," Green told China Daily during an interview. He said a late comer to the city may not necessarily register a loss but is more likely to be valued as a fashion brand riding on the increasing sophistication of consumers here.

Andrew Keith, president of Lane Crawford, agreed. "The timing for market entry couldn't be better as we are seeing dramatic growth in our own businesses in Lane Crawford and Lab Concept, and we believe there will be great customer anticipation for the launch of Topshop next year.

"We are looking forward to a long-term partnership with Topshop with the potential to hopefully optimize our multi-channel distribution platform in Greater China," Keith added.

Last week, Green, who owns Britain's Arcadia fashion empire, sold a 25 percent stake in the Topshop and Topman retail chains to the US-based Leonard Green & Partners LP to raise 500 million pounds ($805 million) for international expansion.

Green said it is still too early to lay out its full expansion plans in Hong Kong at the moment, but had to wait and see the performance of Topshop first before deciding on the next move. However, Green said the company is planning to introduce Topman - a high-street men's fashion brand - to Hong Kong when the timing is appropriate.

Topshop now owns a total of 472 stores, with 324 in the UK and the rest operating in other 38 countries. Apart from three fully owned flagship stores in the US, the international business is either operated via franchise or wholesale led, according to the company.

In May this year, Topshop opened its first pop-up store in Shenzhen, which is also the first one on the mainland, to test the waters of the world's fastest growing market.

litao@chinadailyhk.com

(HK Edition 12/15/2012 page2)