LeSportsac to expand China footprint
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Japanese trading house Itochu has formed a joint venture with Hong Kong based Novo Fashion Retail Group to ramp up the LeSportsac retail presence in Mainland China.
Itochu signed an exclusive distribution agreement with Novo back in 2007 to supply LeSportsacs to outlets in major department stores and other retailers.
This month, the two companies will launch a joint venture, its name not yet revealed,
to focus on the LeSportsac range of casual nylon bags. Standalone stores are a possibility, given the brand’s strong appeal and name recognition in China.
Itochu distributes the US-founded LeSportsac brand in 35 countries and Novo specialises in marketing western brands in Greater China.
Initial plans are to double the network of stores selling LeSportsac to about 100 over the next three years, with a concentration on larger cities, and to broaden the bags’ online availability.
The new venture is also likely to work on expanding the range to include products designed specifically for the China market, based on customer feedback.
Questions & Answers
Q.What is the primary purpose of the new joint venture formed by Itochu and Novo Fashion Retail Group?
What is the primary purpose of the new joint venture formed by Itochu and Novo Fashion Retail Group?
The new joint venture's main focus is to expand the retail presence of LeSportsac casual nylon bags in Mainland China. It will involve doubling the store network and improving online availability for the brand.
Q.How will the joint venture impact the number of stores selling LeSportsac in China?
How will the joint venture impact the number of stores selling LeSportsac in China?
The initial plans for the joint venture are to double the current network of stores selling LeSportsac. This will bring the total number of outlets to approximately 100 within the next three years.
Q.Will the new venture introduce any changes to the LeSportsac product range for the Chinese market?
Will the new venture introduce any changes to the LeSportsac product range for the Chinese market?
Yes, the new venture is expected to expand the LeSportsac product range. It will likely include items specifically designed for the China market, informed by local customer feedback.
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