C.banner to buy iconic UK toy store Hamleys

Lottie, 5, is seen with a pair of 'Zelf' dolls in a Hamleys toy store in London on June 27,2013.[Photo/IC]

Jason Yu, general manager of market researcher Kantar Worldpanel, said China's footwear market is extremely competitive, especially as consumers switch from offline to online sales channels.

He said Chinese shoe retailers, including C.banner, typically operate in the lower end of the market where they are increasingly being squeezed by rising manufacturing costs and fierce price competition.

"As Chinese consumers place a lot of emphasis on brands with strong reputations and international heritage, this acquisition of Hamleys could help C.banner compete more effectively in the premium end of the retail market, and avoid competing on price," said Yu.