While South African clothing retail companies such as Mr Price and Edcon struggle to increase profits, Australia-based Cotton On seems to have found its niche. But chief financial officer Michael Hardwick, who was in South Africa this week, was not prepared to reveal his magic, because then "everyone else will be doing it".story_article_leftCotton On opened its first South African store in Johannesburg's Clearwater Mall in 2011, and today the country is its fastest-growing market. Its operations have recorded double-digit growth every month since it opened here.Three of the group's top-performing stores globally are in South Africa, with its Sandton City store ranked No1, joined in the top 10 by the stores in Gateway mall in Durban and the V&A Waterfront in Cape Town.The group, which has earmarked R3.5-billion for expansion worldwide over the next three years, plans to open 40 stores in South Africa before the end of the year - 10 a month.Cotton On South Africa contributed about 12% to the group's bottom line, said Hardwick. He is not perturbed by South Africa's slowing economic growth. This might be because the group records 50% revenue growth annually.Cotton On country manager Johan van Wyk said despite the pressure consumers were under, there had been an increase in "consumer basket size", which showed the company was selling the right brands.He believes the 24-year-old retailer is doing so well in South Africa because of the similarities in fashion taste between South Africans and Australians.Edcon, the parent company of Jet and Edgars, revealed last month that its losses had grown to almost R830-million in the three-month period to June, compared to R499-million in the same period last year.Mr Price told the market earlier in the week that its half-year sales growth had slowed to 9%, from 15% in the comparable period.story_article_right2Hardwick said Cotton On was "better prepared" to compete for market share in South Africa as he was used to fighting off international brands such as Zara and H&M globally.Cotton On has more than six brands in South Africa - Cotton On, Cotton On Kids, Cotton On Body, Typo, Rubi Shoes and factorie - some as stand-alone stores.The group also plans to introduce its Supré brand, which focuses on the fast-fashion female youth market, to the region, with stores targeted for Johannesburg, Cape Town and Durban by 2016.Cotton On has an aggressive approach to its investment in South Africa. It opened its country office in Johannesburg last year to highlight its determination to expand in Africa. Earlier this year, it launched its first Cotton On in Windhoek. Gaborone is next.However, for Hardwick, "the continent still is very much South Africa".The group is exploring opportunities to establish supplier partnerships in the region to improve supply chain efficiency...