- Prachi Singh |
Ted Baker has entered into an agreement with Shanghai LongShang Trading Company Ltd. (LS) to create a joint venture in Mainland China, Hong Kong and Macau. The company said, LS will assign its rights under the JV to a newly incorporated Hong Kong investment vehicle to be wholly owned and formed by LongGoal and Infra-Apparel Group.
Commenting on the development, Lindsay Page, Acting Chief Executive Officer of Ted Baker, said in a statement: "We are very excited about the next stage in the growth of Ted Baker across the significant Chinese market. In LongGoal and Infra-Apparel, we have extremely capable partners that bring local market expertise to our brand and already well-established design, buying and merchandising skillset."
Ted Baker forms JV to expand presence in China, Hong Kong and Macau
The JV, the company added, will be responsible for operating Ted Baker exclusively in Mainland China, Hong Kong and Macau and will drive the long-term expansion of Ted Baker in the region, combining the local expertise of the JV partner, including the knowledge to support expansion into Tier 2 and Tier 3 cities in Mainland China, with the buying, merchandising, training and brand-building expertise of Ted Baker.
"Ted Baker's global lifestyle appeal has resonated well in China, and we are confident in our ability to amplify the brand's growth. In over 20 years, LongGoal has amassed an infrastructure and presence in more than 65 cities, which presents a strong, compelling and proven platform that Ted Baker can leverage," said Chen Xiaoling, Chairwoman of LongGoal.
Over recent years, the company has opened eight stores in these markets to build and support awareness and understanding of the Ted Baker brand, including three stores in Hong Kong as well as five stores and one outlet store in Mainland China. The JV intends to build on Ted Baker's existing store portfolio, expand the concession network and further invest in Ted Baker's local market online capabilities.
Under the JV agreement, Ted Baker will issue shares in the share capital of its wholly owned subsidiary Ted Baker Hong Kong to the JV partner for a total subscription price of 50 million Chinese yuan (5.7 million pounds), in return for a 50 percent interest in the shares in TBHK. The joint venture is expected to be marginally enhancing to group PBT in the current financial year.
"We are thrilled to have the opportunity to help build and develop Ted Baker in the significant and exciting but complex Chinese market. Our knowledge and experience in building fashion brands through stores, concessions and online should prove invaluable to Ted Baker," added Jing Yin, Co-Founder and Chairwoman of Infra.
Picture:Ted Baker media gallery