Cath Kidston’s florals are a hit with Asian market as sales boom to more than £100m for the first time since it was founded in 1993; Customers get the quirky Britishness and sense of humour of the brand. In Shanghai, there are a lot of bright printed products, so we fit in really well.

Cath Kidston’s florals are a hit with Asian market as sales boom

Design company now has more stores abroad than in the UK, with annual sales rising over £100m for the first time

Simon Neville

theguardian.com, Monday 12 August 2013 19.08 BST

Cath Kidston’s bright designs have proved to be a recipe for success in China, Japan, Thailand and Korea

Cath Kidston’s floral-print handbags and homeware have proved such a big hit with Asian customers the retailer now has more overseas stores than British ones for the first time. Booming sales in China, Japan, Thailand and Korea helped the designer reach annual sales of more than £100m for the first time since it was founded in 1993. International sales soared by more than 50%. The retailer’s chief executive, Kenny Wilson, said: “The products we sell are universal in their appeal. In Shanghai, for example, there are a lot of bright printed products, so we fit in really well. Customers get the quirky Britishness and sense of humour of the brand.“Obviously, there are some products that are focused for individual markets, such as the bento lunchbox which sells really well in Japan, but overall all categories have seen growth.”

Handbags have sold particularly well and some of the floral prints have been used for 20 years, he added.

The group now has 58 stores in the UK and 60 across China, Spain, Thailand and South Korea, with a new flagship store opening in Shanghai as well as the first major UK shop on London’s Piccadilly, due to open in December.

Underlying profits were up 13% to £21m for the year to end of March after 33 new stores were opened, including eight new UK stores, where sales were up 21%.

Worldwide network sales, which include wholesale to retailers, increased by 24% to £129m.

Wilson said the reason for the success was the cheerfulness of the brand and its popularity with women.

“One in four women owns something from Cath Kidston today and we’ve got a very loyal customer base. We obviously want those people to keep buying from us, but we also know there are still three out of four women who haven’t shopped with us,” Wilson said.The company was founded by designer Cath Kidston as a shop selling vintage fabrics. Kidston sold a 60% stake to a private equity firm, TA Associates, in 2010, but she still holds a 23% stake and sits on the board as creative director.

As part of the company’s 20th-annivesary celebrations it had a summer house at the Chelsea Flower Show in May.

Wilson said “[Kidston] is still intrinsically involved in the direction of the company and although she doesn’t design everything any more, she still decides on everything we sell.

“Since I joined the business we have clear distinct roles: mine is to grow the business and hers is to be the creative. We are mutually respectful of what we both bring to the party.”

As well as adorning everything from oven gloves to lampshades, the brand has also collaborated to decorate Roberts radios and design floral Millets tents.

Most private equity companies have a short-term strategy to exit businesses after a few years, but Wilson said TA were very supportive and were in the business for the long term.

“They recognise that this is a growing business and that we want to reinvest the profits to grow the business.”

Plans for further overseas growth will focus on Asia, but Wilson did not rule out looking at markets including the US and, while the UK venture has been successful, he wants to avoid overexposure.