Hong Kong-based watch and optical retailer Stelux is confident that its China business will see a turnaround within three years.

The confidence stems from a partnership it has established with private equity company Boyu Capital, which invested HK$371 million in Stelux in November.

The additional fund will be used to set up an e-commerce website in China in September. Stelux, which operates Optical 88 and City Chain stores, will also move its retail network focus to second-tier cities.

“Boyu Capital offers industry expertise and seasoned managers in the competitive middle-class industry on the mainland, creating more synergies than its investment in our company,” said Stelux chaiman and CEO Joseph Wong.

Stelux has appointed Boyu Capital co-founder Mary Ma, who was a former Lenovo CEO and executive at US-based Texas Pacific Group and Alex Wong as non-executive directors to spearhead the retailer’s expansion in China.

Wong said the online store and the physical stores will offer different products and prices to avoid cannibalisation. Some exclusive products will be offered online, the CEO says.

Stelux operates stores in Hong Kong, Macau, Singapore, Malaysia, Thailand and mainland China.