Bringing the West’s fashion to Far East

Scarborough Group has joined forces with state-owned AVIC International Shenzhen (AVIC) to create a ‘one-stop shop’ for British and European brand retailers looking to set up in China as its economy continues to boom.

ScarVic Retail Management will help Western brands to open standalone shops as well as concessions in Rainbow, a chain of department stores. Scarborough, AVIC and C. H. Wong, the founder of blue chip development company Top Spring, are all significant investors in Rainbow.

Simon McCabe, director of ScarVic and son of Kevin, told the Yorkshire Post they wanted to capitalise on the continued health of the tiger economy and shoppers’ appetite for Western products.

“There is so much growth still to uncover. The Chinese public are real drivers and work hard to make things happen.

“They don’t appear to have suffered the same fate as the West. The guys walking down the street have or want the same brands as Fifth Avenue (in New York) or Regent Street.”

Scarborough Group turns over £80m, Mr McCabe said, and has grown to become one of Yorkshire’s best-known property companies since it was set up by Kevin McCabe, who was born and brought up in Sheffield.

Today it has interests across Britain and central Europe as well as in Australia, India and China. The new venture will see it take fashion for men, women and children to Communist-ruled China and it is already in negotiations with four prospective retailers from Britain and continental Europe

The firm said in a statement: “It will co-invest with retailers, represent them in China, advise on selection of cities to suit their brands, assist in the identification and acquisition of venues, provide logistics as necessary, organise local manufacturing of their products and if required also provide corporate and tax planning services.”

Simon McCabe added: “There is already a significant number of major European retail brands in China ranging from Carrefour supermarkets to the high end jewellery and fashion retailers; however, there is still a huge number unrepresented who will find our services can help demystify the complexities of establishing a retail brand in China.”

Avic, set up in 1982, is a sprawling enterprise which works in high-tech manufacturing, real estate, hotel management, retailing, resources, trading and financial services. It has interests in five listed companies and a total operating income of around RMB 20bn (£1.9bn).

In recent years Kevin McCabe has made significant advances in China, buying a football team and helping to broker a twinning deal between Sheffield and Chinese city Chengdu.

ScarVic will benefit from Scarborough’s years of trading in the Far East, according to Mr McCabe’s son.

“We have been involved in real estate in China for the past decade.

“Because of our vast experience and knowledge of the sector we got involved with Rainbow.

“We have done a lot of property deals with Top Spring, a major local property player. We have excellent partners and.... (will be able to) help and assist our colleagues in China and bring Western retailers who are desperate to expand in the country.

“It is a good combination of experience of the West and our local partners who understand the local work ethos.”

Scarvic will be run by Mr McCabe, Jack Lou of AVIC and Susan Tham of Scarborough in China.

Rainbow has more than 40 stores in China and Mr McCabe described it as a “major retail player” with similarities to both upmarket US malls and British department stores.

“Rainbow is like walking round Harvey Nichols or Harrods.

“When you go to China they are more like US malls. It is a difficult one to explain unless you see it with your own eyes. I think it is an incredible place.”

Kevin McCabe made headlines late last year when he warned Nick Clegg over the future of Sheffield in the aftermath of the cancellation of the £80m loan to Forgemasters.

He told the Deputy Prime Minister and Sheffield Hallam MP that Yorkshire could “fall off the world business map” without more support from Government.

Set fair for growth

Scarborough Group was set up in 1980 but can trace some of its roots back to the 1960s.

Today most of its British operations are based in Leeds, London, Edinburgh and the east coast resort town that gave the group its name.

One of the group’s major companies is serviced office accommodation firm Forsyth Business Centres, which doubled in size between 2008 and 2010.

Scarborough is owned by the McCabe family and Kevin McCabe is chairman.

He also runs the international arm of the group and is the plc chairman and owner of Sheffield United Football Club.