Bailian, Wangfujing, and Li & Fung have signed an agreement at the Shanghai Expo Centre to establish a joint venture for retail business development.
The new joint venture will be registered in the China (Shanghai) Pilot Free Trade Zone. With initial registered capital of CNY48 million, Bailian and Wangfujing will each own a 40% stake in the new JV; while Li & Fung will own the remaining 20%.
The joint venture will enjoy the resource advantages of all the three parties. Bailian and Wangfujing will provide their nationwide online and offline retail channel resources and Li & Fung will offer its global procurement network and supply chain management. The cooperation aims to promote the development of self-owned businesses of retail enterprises and the transformation of traditional retail industry in China. In the future, the joint venture will become a coordination platform to promote the owned business strategies and procurement in China and abroad while integrating the resources of the three parties.
The joint venture's businesses reportedly cover owned or licensed brands development; general agent and distribution; attracting investments; and brand promotion and marketing.
In addition, after the establishment of the joint venture, it will initially focus on developing men's clothing; babies and children's products; home supplies; and fashion brands. The company aims to establish six brands in three years, open 300 stores, and realize CNY1 billion sales.