(Yicai Global) June 6 -- Chinese womenswear giant Ellassay Fashion has agreed to take on the responsibility for making and selling Nobis-branded down jackets in the Chinese mainland, Hong Kong, and Macao.
Ellassay will invest CNY40 million (USD5.7 million) to form a joint venture with Nobis that will produce and sell the Canadian company’s down jackets, ready-to-wear accessories, and other items, the Shenzhen-based firm said on June 3.
Nobis will own half of the JV by awarding the intellectual property of the registered trademark to the joint venture, and the partners will each recommend one co-chairman, Ellassay noted.
The JV will rely on Ellassay’s experience in China’s fashion business to help Nobis select products for the Chinese market to be sold online and offline, Lin Jichuan, a researcher at China International Capital, told Yicai Global. Moreover, the partnership will help Ellassay make breakthroughs in down jackets and men’s clothing, Lin added.
Established in 2007, Ontario-based Nobis sells its products in more than 35 countries and regions, with brand stores in many well-known cities, including Toronto, Paris, Seoul, and Incheon. Co-founder Robin J. Yates worked as vice president at Canada Goose for over 10 years.
Nobis has not yet opened brick-and-mortar shops in China but has a flagship store on Alibaba Group Holding’s Tmall e-commerce marketplace. Its products are priced between CNY2,500 and CNY11,000 (USD352 and USD1,550), aiming to catch up with Canada Goose’s prices in China.
The Chinese market for down jackets was worth around CNY169.2 billion (USD23.9 billion) last year, according to the China National Garment Association. There is fierce competition in the segment with items prices at less than CNY2,000. But the high-end market, where products sell for more than CNY5,000, is almost entirely monopolized by foreign brands.
Besides its own brand, Ellassay also operates many well-known foreign labels in China, such as Germany’s Laurèl, Ed Hardy of the US, and IRO Paris, through acquisitions since going public in 2015.
Editors: Tang Shihua, Futura Costaglione