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| Friday, 20 March 2020, 09:20 HKT/SGT | |
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HONG KONG, Mar 20, 2020 - (ACN Newswire) - Smartac Group China Holdings Limited (HKEX: 395) ("Smartac" or the "Group") has announced that the Group has entered into franchise agreements with STELLA MCCARTNEY LIMITED ("SMC"), STELLA MCCARTNEY ITALIA SRL and STELLA MCCARTNEY KIDS ITALIA SRL.
The agreements grant the Group the right to sell (i) SMC's mainline of ready to wear products comprising fashion apparel and accessories; and (ii) SMC's mainline of kids products comprising kids fashion apparel and accessories. Both lines are to be sold to consumers in Mainland China on the designated online sales platforms operated by the Group for three years effective from 1 January 2020 to 31 December 2022.
These agreements represent a win-win collaboration. For Smartac, it can diversify its branded products portfolio and enhance the online multi-brand shopping experience on its e-commerce platforms. These franchises strongly complement the business development of the Group at a strategic level. For the British luxury powerhouse, the cooperation will unlock greater potential in China's online luxury market. China's share of the global luxury market is projected to expand from 33% in 2018 (when consumers spent US$122 billion on high-end merchandise) to 41% by 2025 (when they are expected to spend between US$173 billion and US$181 billion). That translates into a CAGR of between 5% and 6% .
Mr. Jeff Ho, Chief Executive Officer of Smartac, said, "We are thrilled to be Stella McCartney's franchisee in the PRC, testimony to our proven track record and well-established reputation as a trusted partner in providing e-commerce solutions. What's more important is that the cooperation will pave the way for our future collaboration with more world-renowned brands and partners."
Looking ahead, Smartac will continue to seek cooperation with more e-commerce platforms and different suppliers as well as leading brands in order to improve the product exposure and supply chain and enhance profitability. It will also explore other strategic investment and business opportunities that could create value for shareholders in the long run.
Stella McCartney is a luxury lifestyle brand that was launched under the designer's name in 2001. The brand now offers ready-to-wear womenswear and menswear as well as handbags, shoes and a kids line. It has also developed collections under licensing agreement for eyewear, lingerie, swimwear and fragrances as well as a long-term partnership with adidas.
The collections are currently available in more than 100 countries at wholesale, and through 53 freestanding stores including London, New York, Los Angeles, Paris, Milan, Tokyo, Hong Kong, Shanghai and Beijing. Stella McCartney has previously been distributed in China since 2004 at select luxury wholesale retailers. In 2012, the British luxury brand expanded into China with a store opening in Shanghai.
About Smartac Group China Holdings Limited (HKEX: 395)
Smartac Group China Holdings Limited (HKEX: 395) (the "Company") is an investment holding company. Through its subsidiaries, it provides (i) software sales and O2O consultation services by O2O solutions segments; (ii) digital advertising platform and related solutions by IDM solutions segments and (iii) marketing strategy and management of the operation of the online shop on e-commerce platforms by E-commerce solutions segments.
Topic: Press release summary
Sectors: Daily Finance, Daily News
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From the Asia Corporate News Network
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