Charles and Keith

Diversification is a form of corporate strategy for a company. It seeks to increase profitability through greater sales volume obtained from new products and new markets. Diversification can occur either at the business unit level or at the corporate level. At the business unit level, it is most likely to expand into a new segment of an industry that the business is already in. At the corporate level, it is generally very interesting entering a promising business outside of the scope of the existing business unit.

Diversification is part of the four main growth strategies defined by the Product/Market Ansoff matrix:

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LVMH buying stake from Charles and Keith is one example of diversification.

Charles and Keith is the Singapore local shoes retailer which was founded in 1996 by Wong brothers. In the eyes of many young women, Charles and Keith has provided fashionable shoes at the reasonable price. Realizing that foreign branded shoes are expensive and ill-fitting for the small feet of Asian women, they decided to invest $100,000 as capital to open their own shoe label, Charles and Keith. The very first store open in Singapore’s Amara hotel in 1996, Charles and Keith has been expanding their business in Singapore as well as in the international market. To date, there are 290 Charles & Keith stores are located in the prominent shopping districts across the world in 22 major cities like Cairo, Jakarta, Dubai, Manila, Kuala Lumpur and Ho Chi Minh under its Charles and Keith and Pedro brands. Charles and Keith concentrates on women’s shoes and bags while Pedro carries footwear and accessories for both men and women.

As the head of Research and Development team and Chief Designer, Mr. Keith often travel across fashion cities such as Milan, Paris and London to observe and be inspired the way shoes are designed including materials used as well as the various model of shoes making. Charles and Keith is the affordable shoes and accessories brand in Singapore,...