German kitchen brand Poggenpohl has announced it is working with Chinese furniture retail giant Red Star Macalline Group Corporation in a joint venture set to start “shortly”, according to reports in the German trade press.
Poggenpohl says that it has been active in the Chinese market for the past 15 years and that it is a key market for it. The new joint venture is part of its global strategy.
Poggenpohl chief executive Gernot Mang is reported as saying: “The establishment of the joint venture is an important milestone on our way to sustainable growth. China is a key market for Poggenpohl. With Red Star Macalline, we have found a strong partner that will help us gain market access and support our expansion with our sales expertise.”
And he added that its kitchens continue to be “made in Herford”.
Red Star Macalline operates 308 shopping malls providing around 19 million square metres of retail space and employs more than 24,000 staff. In its 2018 annual report, it reported sales of RMB14.24 billion (£1.62bn) – up from RMB10.95bn in 2017 – and net profits of RMB4.5 billion.
This follows the announcement earlier this month of Poggenpohl’s new strategy to produce products that are more attractively priced and aimed at younger target groups.
Poggenpohl also announced it is investing in a new flagship store in New York and expanding its manufacturing plant in Herford.