By Li Qiaoyi

The country's first comb maker to go public in Hong Kong will be cautious and gradual about expanding its sales network outside the Chinese mainland, top management of Chongqing-based Carpenter Tan Holdings Limited said at a media briefing held in Beijing Wednesday.

While remaining focused on expanding business in the Chinese mainland, the company will gradually devote more attention to developing overseas markets, said Su Jianping, investor relations manager of Carpenter Tan.

The company raised HK$139.5 million ($17.99 million) in an initial public offering December 29 on the Hong Kong Main Board.

Carpenter Tan plans to open 200 new outlets this year, said Tan Chuanhua, founder and chairman of the company. And the company's prospectus released last month said it plans to set up 25 stores overseas by 2010.

The company now owns 853 franchises in the Chinese mainland, and four chains in Hong Kong. In addition, there are two franchises in Singapore and Malaysia respectively and one in the US.

Hong Kong, Macao, Taiwan, and neighboring countries including Japan, South Korea and Southeast Asian countries with similar cultures will be the primary destinations for Carpenter Tan's early stage expansion efforts, while growth in the US and European markets will be temporarily slowed down, Su added.

Su told the Global Times that local agents who develop franchises will be planning overseas business and trying to better understand local markets.

Different niche marketing strategies will be adopted to meet demand in different markets, Su said. For example, while flat dyed combs are popular in China, raw wood color brushes are more preferred in Western countries, he said.

Currently, comb making remains the company's main business, Tan said. He said Carpenter Tan will reform the design and packaging of its products and change its stores' décor, to create a generally uniform visual image to enhance its brand awareness.

"The design and package of a single product look nice. But when different products are put together, they look disorderly," Tan said.

The design and packaging of the products and stores' décor will be made more modern and stylish, while retaining a traditional Chinese appearance, to attract more customers in the international market, Tan added.

Carpenter Tan's shares closed at HK$4.10 ($0.53) Wednesday, up 58.91 percent from the stock issuance price.