Argentinean textile and footwear producer Alpargatas has awarded a five-year license to Korean manufacturer Jin Sports Company to produce and sell Topper apparel and football accessories for the Korean market. The company expects turnover resulting from this deal to reach $ 7.5 million.

Marketing manager for the brand Gabriel Travaglini explained the license was renewable for a further five years and that a decision would be made in the next few weeks as to whether it will also cover footwear production and sales.
 

Korean sales of sports footwear and apparel total approximately $1.2 billion per year, 50% of which is controlled by global companies such as Nike and Adidas. The remaining 50% is in the hands of brands such as Umbro, Hummei, Lotto, Kappa, Diadora and Spanish Joma. It is among these brands that Jin Sports intends to position the Topper brand. The aim is to occupy 25% of this market next year, 35% in 2008 and 50% in 2009.

The investment total is $7 million which includes five new shops. In 2005, the brand sold five million pairs of trainers, of which 500,000 were exported. The target for 2006 is to increase sales by 10%. While the brand seeks to penetrate new markets, its main markets are currently Uruguay, Paraguay, Chile, Venezuela and Bolivia.

The future of Alpargatas - which is currently controlled by the Newbridge Fund and may be sold to Brazilian holding Camargo Correa - remains undecided.