Sex doesn't sell for Playboy in China

It is a rare company in China that can claim Beijing's censors helped build its business. But Playboy, which on Wednesday announced an expansion of its presence on the mainland, could not have prospered in sexually conservative China without the inadvertent help of the Communist party, which has long banned Playboy magazine, local analysts say.

The US brand is battling to take the porn out of Playboy's image globally these days, but in China that is already true: to the average Chinese consumer, Playboy has nothing to do with sex.

Playboy's business in China is a licensing business, with bunny ear-logo products sold mainly to Chinese men, the company said. Men's dress shirts and suits, bags and shoes, are the best sellers, the company said.

Playboy plans to build flagship stores in major Chinese cities, and will expand its retail presence from 3,000 to 3,500 outlets, in partnership with Handong United, a recently formed group.

Matt Nordby, Playboy's global licensing head, said the brand planned to branch out to women's shoes and attract more female consumers to Bunny-labelled products.

He said that retail revenues in China -they exceeded $500m last year, one-third of the global retail sales total - have been growing in line with Chinese gross domestic product (about 7 per cent), and have not been affected by the government austerity programme that has savaged some other luxury brands.

"We want to expand to a younger demographic in China," Mr Nordby said. "Mainland consumers have been inundated with brands, its about standing for something they understand," he said, adding that with its 20-year history in China, Playboy is viewed as almost a local brand.

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"In China and other Asian markets, Playboy has positioned itself as a lifestyle brand for sophisticated, suave, fashion-conscious consumers by working with strong licensees in premium mass-market apparel, sportswear, eyewear etc," said Torsten Stocker, greater China retail partner at AT Kearney.

"For many consumers, the association with what might be considered morally questionable behaviour or with sexually explicit imagery doesn't exist, in part due to the strict censorship in China."

But Playboy may struggle to win over more consumers in China where shoppers are moving away from logos that broadcast success, and favouring brands without obvious marques.

Additional reporting by Jackie Cai

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