With Total Consideration of RMB200 Million
Driving the Growth of Online Sales Market Share
HONG KONG, Feb. 13, 2015 /PRNewswire/ — Shanghai La Chapelle Fashion Co., Ltd. ("La Chapelle" or the "Company", together with its subsidiaries, the "Group", stock code: 6116.HK), one of the largest fashion apparel companies in the PRC, today announced that the Company has entered into an equity transfer agreement and a capital injection agreement with a renowned online fashion retailer – Hangzhou Anshe E-Commerce Company Limited (well-known for its brand name "QiGeGe"), pursuant to which the Company will acquire approximately 45% of the total registered capital of QiGeGe with a total consideration of RMB135,000,000. Immediately after signing of the equity transfer agreement, the Company has also agreed to inject RMB65,000,000 new capital into QiGeGe. Upon completion of the above transactions, La Chapelle will possess 54.05% of the equity shares in QiGeGe.
The investment is a part of La Chapelle’s O2O strategy to strengthen its leading position in mass-market ladies’ casualwear market. Having launched the Group’s online flagship store on Tmall last year, La Chapelle has been actively looking to form a strategic alliance with additional online shopping platforms to further improve its online sales and marketing capabilities. QiGeGe has a reputable team specializing in online marketing and sales with extensive experience in conducting effective online marketing and advertising through the operation of online platforms and interactions with customers. Investing in QiGeGe therefore enables La Chapelle to capitalize on the talents of the former, while QiGeGe will also benefit from the Group’s strong supply chain and capability to execute multi-brand strategy.
Mr. Wang Yong, Executive Vice President of La Chapelle, said, "The economic benefits from the fans group in Wechat and Weibo have been increasingly obvious in recent years. A number of new internet companies with strong online sales capabilities have been spawned by this Fans Economy. QiGeGe is one of the representatives in this field. Unlike traditional e-commerce platform, these emerging internet companies maintain and operate their fans base through online channels like Wechat and Weibo, which lowered the operating expenses and increased the rate of conversion from visits to final transactions, realizing the goal of ‘low cost, high conversion rate’. QiGeGe’s strong online operational capability and effective marketing among fans group has established high reputation in the online fashion retail sector in China, making it an ideal partner for La Chapelle to develop online sales platform under our own brand. The cooperation between the two parties could enhance the online operational capability of the Company and drive the growth of online market share of our brands, which will develop La Chapelle’s own online platform into a leading corporation in the industry. Meanwhile, the multi-brand product development abilities, comprehensive supply chain and strong offline sales channels possessed by La Chapelle could provide QiGeGe with essential resources for its expansion into the largest online fashion sales platform under its own brand in the PRC. The cooperation allows La Chapelle to realize the strategic target of developing into a product-centered online and offline fashion shopping platform in this new economic era."
About Shanghai La Chapelle Fashion Co. Ltd.
Founded in 2001, Shanghai La Chapelle Fashion Co. Ltd. is a fast-growing multi-brand fashion group in the PRC, which designs, markets and sells apparel products with a focus on mass-market ladies’ casualwear. The Group strives to offer customers the latest fashions at competitive prices through a wide range of apparel products under 8 brands, namely La Chapelle, La Chapelle Sport, 7.Modifier, Candie’s, La Babite, La Chapelle Homme, Pote and La Chapelle Kids. The Group directly controls and operates 100% of its nationwide sales network. As at 30 June 2014, the Group’s extensive nationwide retail network comprised 5,671 retail points located in approximately 1,900 physical locations, comprising mainly department stores and shopping malls, in cities across all 31 provinces, autonomous regions and municipalities in the PRC. In August 2014, the Group launched its O2O strategy to integrate traditional physical stores with online channels.
About Hangzhou Anshe E-Commerce Company Limited
Founded in September 2009, Hangzhou Anshe E-Commerce Company Limited is a renowned online fashion retailer in China, which sells a wide range of fashionable apparel products including apparel, women’s shoes and accessories under the brand names of QiGeGe, OTHERMIX and OTHERCRAZY. Upon QiGeGe’s establishment in Taobao, its robust growth has made it become a well-known Tao-brand. In 2010, Hangzhou Anshe was awarded the Top 100 e-Commerce Enterprises in China by the China Electronic Commerce Association. In December 2012, Hangzhou Anshe introduced two internationally well-known venture capital investments – Legend Capital and Matrix Partners – to further accelerate its business expansion.
Issued by Porda Havas International Finance Communications Group for and on behalf of Shanghai La Chapelle Fashion Co. Ltd.