Cheil Industries takes over Italian brand Colombo

Cheil Industries Inc., a fashion and textile affiliate of Samsung Group, said Thursday it has purchased an Italian luxury fashion brand in a bid to expand its presence in Asia's emerging fashion markets.

Cheil said it bought a 100 percent stake in Milan-based Colombo Via Della Spiga from the brand's Moretti family owner. The Korean company did not disclose the terms of purchase.

Established in 1937, Colombo is a luxury designer brand famous for premium leather handbags and wallets. Its products sell in eight countries including England and France and there are 13 Colombo shops in Korea.

Cheil Industries said it will go into the fast-growing Chinese fashion market from 2013 and open 100 new shops for the brand in China and Hong Kong with sales expected to reach 300 billion won ($260 million) by 2020.

"We are targeting wealthy people in Asian countries," said an executives from Cheil Industries. "We will promote value through strong marketing and development of popular products." (Yonhap)