There is a very positive vibe at China Dongxiang at the moment, with sales expected to rise in the coming months and new stores set to open. The brand, which owns the rights to the Kappa sportswear brand in China, is expecting sales to rise by 20% during the second half of the year and says it will expand its retail network beyond China’s largest cities.

The company posted 15% sales growth during the first six months of 2010, but chief executive officer, Dennis Qin, believes second-half revenue will be even better. The brand hopes to open more than 300 stores in China during the second half, mainly in what Mr Qin describes as third- and fourth-tier cities.

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