Ever-Glory to launch private label line
Chinese apparel manufacturer Ever-Glory International Group, Inc. has entered into a joint venture agreement with La Chapelle Garment to launch Ever-Glory's private-label clothing line. The two companies will establish a new entity, La Go Go Fashion, which will manufacture and market Ever-Glory's inaugural private label brand for young female professionals.
Ever-Glory is to invest $1.4 million in La Chapelle Garment in return for a 10% stake in La Chapelle. Meanwhile, La Chapelle will use these proceeds to finance the joint venture. Through its subsidiary Nanjing Goldenway Garments Co, Ever-Glory will hold a 60% stake in La Go Go Fashion, while La Chapelle Garment will hold the remaining 40%.
La Chapelle Garment currently runs 350 specialty outlets in more than 40 Chinese cities including Beijing, Chengdu, Nanjing, Shanghai, Suzhou and Tianjin. La Go Go clothing will initially be sold at 20 of La Chapelle’s existing retail locations. By December, Ever-Glory plans to expand sales into 80 outlets across all major cities in China.
A recent survey undertaken by McKinsey and Company valued the retail apparel market in China at $84 billion – the world's third-largest apparel market behind the US ($232 billion) and Japan ($100 billion). The industry is growing at a rate of approximately 12% per year.
