Cosmo Lady Says Unit To Form JV With Kappa
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Cosmo Lady has formed a joint venture with Shanghai Kappa to develop and sell intimate apparel in China.
The partnership – 75 per cent owned by Cosmo Lady and 25 per cent by Shanghai Kappa – will focus on men’s underwear and women’s sports underwear products.
Shanghai Kappa and the JV company will enter into a licensing agreement giving the JV the exclusive right to use the Kappa trademarks on its intimate wear products in China for eight years.
Shanghai Kappa, incorporated in China, is a wholly-owned subsidiary of China Dongxiang, which owns the rights to the Kappa sportswear brand in China and Macau.
Questions & Answers
Q.What is the primary business of the new joint venture?
What is the primary business of the new joint venture?
The new joint venture will focus on developing and selling men's underwear and women's sports underwear products within the Chinese market.
Q.Which company holds the majority stake in this new partnership?
Which company holds the majority stake in this new partnership?
Cosmo Lady holds the majority stake in the joint venture, owning 75 per cent of the new company.
Q.How long will the joint venture have exclusive rights to use Kappa trademarks?
How long will the joint venture have exclusive rights to use Kappa trademarks?
The joint venture company will have the exclusive right to use the Kappa trademarks on its intimate wear products in China for a period of eight years.
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