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Callaghan Expands in China

Callaghan has just opened its twelfth establishment in China. This company from La Rioja considers the Asian giant to be a priority market for its internationalisation plan. The firm expects to end the year 2012 with some 20 self-owned establishments in China, reaching the figure of 100 establishments by the year 2017.

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In spite of the brand's rapid expansion throughout the Chinese market, Callaghan's expansion in the Asian country has not been easy. Following an initial venture with a local partner, which did not reap the rewards that were expected, Callaghan decided to enter the huge Chinese market on its own. Callaghan has once again decided to work in conjunction with another Chinese company, a venture that is proving to be successful this time. "China is different to Spain and Europe. There are no multi-brand shops and trading is concentrated within shopping malls. This obliges businesses to enter the market with their own shops," explains Basilio García, the company's Managing Director. "It is more difficult to open 50 shops than 300. When the business works and they know you, it is much easier to grow," he declares.

Callaghan has chosen to position its brand within a higher-quality segment than in Spain. Thus, in China Callaghan shoes cost between 50% and 100% more than on the Spanish market.

This company from La Rioja has opted for exports as the best means of ensuring growth. In addition to China, Callaghan also has establishments in South Korea, whilst it has also just opened its first shop in Italy, its main European market. Furthermore, the company's online shop has been operating for six months. For the time being, it only sells its products in Spain through the web site, although this virtual shop plans to cater for the whole of Europe in the near future.




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