Last month US clothing company Gap Inc launched a dedicated e-commerce site and opened its first Old Navy store on the Chinese mainland, a 2,000 square-meter, three-story outlet also in the Jing'an district and several hundred meters from the A&F flagship.

Brommers is upbeat about Abercrombie's future in China, saying his company is creating a new segment in the retail market called casual luxury, which is reflected in the clothing style and price.

"Chinese consumers seem to be looking for something a little beyond just blinged-out luxury logos, and we think the laid-back sophistication that A&F offers is timed right," Brommers said.

Asked how the Chinese market will contribute to the company's revenue across its worldwide port-folio, Brommers said: "We didn't make predictions yet but we do know that the seven Hollister stores on the Chinese mainland are offering a very encouraging start. We have seen sales increase at 35 percent for the Hollister stores and we expect similar strong results for A&F in near future."

Abercrombie is set to open another A&F store this year in Chengdu, capital of Sichuan province, and is seeking opportunities for both A&F and Hollister in other Chinese cities." When we enter a new market, we generally look for prime locations in the most important shopping districts," Brommers said. "We have found when we expanded around the world that a prime location is the most important ingredient.

"It's a not a cookie-cutter format. We have to take the time to find a right location for our brand, "he said.

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