Singapore-based Crocodile International Pte Ltd announced yesterday that it will relocate its headquarters to China's eastern metropolis as part of its global strategic plan after winning a court case against French retailer Lacoste.

"This decision shows our commitment to the Chinese market which is promising and growing fast," said Ang Boon-Tian, chairman of the Crocodile International Pte Ltd (CI).

The Singapore firm will invest more than 100 million yuan (US$12 million) in Shanghai this year to build a new Crocodile building. The project will start in June and be completed by the end of next year.

This building will not only be the headquarters of the Shanghai Eastern Crocodile Apparels Co Ltd, a subsidiary of the Singapore company, but also CI's global strategic headquarters, Ang said.

"This is a very exciting project for CI and one that I'm very proud to be part of," he said.

CI now has some 1,000 speciality shops and sales outlets on the Chinese mainland with combined sales of more than 2 billion yuan (US$242 million) over the past 10 years, said Yi Qianru, general manager of the Shanghai Eastern Crocodile Apparels.

It has invested 160 million yuan (US$19 million) on the Chinese mainland and is considering a further investment of 100 million yuan (US$12 million), Yi said.

Its global sales last year amounted to US$313 million with China occupying 35 percent of that amount, higher than its shares in Singapore.

"We will increase our investment in the factories in Suzhou, Jiangsu Province and Shenyang, Liaoning Province to expand their production capacity," Ang said.

"The plan is brewing," he told China Daily, but he gave no details.

As a market leader, CI is determined to contribute to the development of China's garment industry.

"We will continue to co-operate with the Chinese Government and regulatory bodies on intellectual property issues that will ultimately benefit consumers," said Ang.

The Singapore company brought a suit against Lacoste in March 2002 for its copyright infringement. A week ago, the Shanghai No 2 Intermediate People's Court ordered the French retailer to pay a compensation of US$1 and make a public apology.

"It is not just a victory in the courtroom, but it is a victory for a Chinese brand in today's global marketplace," said Tan Hian Tsin, the creator of the Singapore crocodile logo.

But the French firm vowed to continue its war with Crocodile International, saying the loss of a trademark suit will have no impact on its China operations.

Lacoste has brought four suits against Cartelo registered by CI and Chinese domestic partners for trademark infringement and illegal competition in Beijing and Shanghai.

"But it doesn't have enough evidence to support its suits," said Tao Xinliang, an attorney with the Singapore firm.

Ang said Lacoste is complicating the issue and confusing consumers with the legal disputes. "It is never our intention to do so," Ang said.

The Singapore firm has stated that it supports the co-existence of both brands and that the market is large enough for both companies to grow and thrive.

"For Lacoste, this is an issue of market share, not intellectual property. For us, it's a matter of pride and principle," Ang said.

"Our focus remains on the growing Chinese market. We remain 100 percent committed to China and welcome fair and ethical competition that will grow the market," he said.

(China Daily April 1, 2004)