Oasis has forged a joint venture to break into the US$40 billion (£22.72 billion) Chinese clothing market and will open 40 concessions there next year.
Oasis Pacific Rim is a partnership between Hong Kong-based Kong Tai Sundry Goods (KTS) and Oasis, which was recently acquired by Baugur.
Oasis business development manager Meg Luftman said the Chinese market represented a 'salivating opportunity', but was difficult for a Western group to enter because of the build of Asian women.
By forming a joint venture, product can be sourced locally and shops will be staffed by locals, she said. 'What KTS brings to the party is local skills and relationships.'
Concessions, to be branded Oasis London, will open in department stores in cities such as Shanghai and Beijing from February, and standalone stores are likely to follow.
'We are investing a lot of resources, but we are not expecting to make a profit to start with. It's a strategic opportunity,' added Luftman.
AT Kearney analyst Hana Ben-Shabat said the decision was 'very interesting'.
She said the Chinese clothing market was worth US$39.7 billion (£22.55 billion) in 2002, up from US$38.5 billion (£21.87 billion) in 2001.
Womenswear and girlswear account for 43 per cent of the market, with 30 per cent of customers shopping in big department stores.
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