Korean’s Eland To Build Tourism JV With China’s Wanda
In this article (5)
South Korea’s apparel brand Eland recently signed an agreement with China’s Wanda Group to establish a tourism joint venture in South Korea.
This is reportedly the first cooperating result of the two parties since they signed their leisure industry investment agreement in June 2014.
According to the agreement, Eland and Wanda will each hold a 50% stake in the tourism JV and they will each account for half of the board of directors. However, Eland will be responsible for the operation of the JV. The two parties are expected to agree on actual processes, including deciding on a corporate name, in March 2016 at the latest.
A representative from Eland said that by combining Eland’s diversity with Wanda’s online advantage in China, the two parties will achieve better results. Wanda Group operates in various industries such as department stores, hotels, real estate, and tourism in China. By cooperating with Wanda, Eland plans to transfer its major business from fashion to logistics.
Questions & Answers
Q.What proportion of the new joint venture will each company own?
What proportion of the new joint venture will each company own?
Eland and Wanda will each hold a 50% stake in the tourism joint venture. They will also each account for half of the board of directors, sharing control equally in the partnership.
Q.Which company will be responsible for managing the day-to-day operations of the tourism joint venture?
Which company will be responsible for managing the day-to-day operations of the tourism joint venture?
Eland, the South Korean apparel brand, will be responsible for the operation of the joint venture. This suggests they will lead the day-to-day management of the new tourism entity.
Q.When are Eland and Wanda expected to finalise the operational details for their joint venture?
When are Eland and Wanda expected to finalise the operational details for their joint venture?
The two parties are expected to agree on actual processes, including deciding on a corporate name, in March 2016 at the latest. This suggests a deadline for establishing key operational aspects.
Q.How does Eland intend to change its business focus through this new partnership?
How does Eland intend to change its business focus through this new partnership?
By cooperating with Wanda, Eland plans to transfer its major business from fashion to logistics. This indicates a significant strategic shift for the South Korean apparel brand into a new sector.
Reader pulse
Eland's JV with Wanda is:
19,963 votes so far