Chinese online discount retailer Vipshop is to pay US$55.8 million to acquire a 23 per cent stake in Ovation Entertainment.
Ovation’s business, conducted through its subsidiaries based in China, is to develop cosmetic products under proprietary brands and media products.
“This strategic investment provides Vipshop access to a consistent supply of Ovation branded cosmetic products, which are in high demand among our growing base of users, about 75 per cent of whom are female,” said Eric Shen, chairman and CEO of Vipshop.
“Ovation’s expertise in branding and marketing will also help drive up our brand equity, and will support our efforts to expand our user base and increase buying activities on our platform.”
Earlier this month, Vipshop acquired a 75 per cent stake in Lefeng.com, of which Ovation has 25 per cent. Lefeng owns and operates an online retail business which specialises in selling cosmetics and fashion products in China.