Hugo Boss AG has purchased back the 40% stake in its joint venture from its franchise retail partner Rainbow Group as it gains full and direct control of the Chinese Mainland and Macau retail network of the Hugo Boss brand.
Hugo Boss AG and Rainbow Group established a joint venture in July 2010, with Hugo Boss AG holding a 60% stake and Rainbow Group holding the remaining 40%. Hugo Boss AG said due to the professional operation of Rainbow Group, the Chinese business of the Hugo Boss brand achieved triple growth since 2009.
At present, Greater China is the fourth largest market for Hugo Boss AG. In the 2013 financial year, Hugo Boss' 126 independent stores and stores-in-store in mainland China, Hong Kong, and Macau contributed revenue of EUR211 million, accounting for 9% of the total revenue of the group. Meanwhile, the joint venture's 55 stores in mainland China and Macau contributed EUR94 million.