La Chapelle takes Jack Walk stake.
Shanghai La Chapelle Fashion has taken a controlling stake in quality mens’ fashion label Jack Walk.
The Hong Kong-listed company has paid RMB 75 million for a 69.12 per cent share of the six year old Jack Walk Shanghai business which produces casualwear, sport, denim and business. apparel and has its own retail chain.
La Chapelle says the investment is in line with its product-oriented strategy as well as its core values of “cost-effectiveness, fashion, quality”, which will help strengthen the group’s position in mass-market casualwear segment.
Since the introduction of its male apparel products in 2011, La Chapelle has been actively cultivating its menswear brands and constantly seeking for opportunities to develop new brand in order to increase its market share in menswear market.
“The core management team of Jack Walk had worked in various well-known international fast-fashion companies including Uniqlo and possesses ample hands-on experience in the industry,” La Chapelle said in a statement.
“The investment in Jack Walk will further enrich the product mix of the group and accelerate the implementation of its multi-brand strategy. Leveraging on La Chapelle’s extensive distribution channel and competitive supply chain capability, the investment is expected to enhance Jack Walk’s rapid expansion and margin improvement,” said the statement.
“With the growing male population in China, the change in the apparel consumption preferences for male consumers and a significant increase in purchasing power, China’s casual menswear and business casual menswear market has been growing rapidly, and is expected to continue its stable growth,” said Wang Yong, executive VP of La Chapelle.
“The core members of Jack Walk have years of operational experience in international fast-fashion companies. They are the experts in operating ‘short, cost-effective, fast’ business, which is suitable for current fast-fashion market. On the other hand, their extensive experience in product development and brand management enables them to closely follow market trends and develop products that are in line with the needs of mass consumers.
“As one of the important steps in La Chapelle’s multi-brand strategy, investing in quality menswear brand Jack Walk will definitely boost the business growth of the group,” he concluded.
Founded in 2001, Shanghai La Chapelle Fashion designs, markets and sells apparel products with a focus on mass-market ladies’ casualwear. The group has eight brands (five ladieswear brands, two menswear brands, one childrenswear brand): La Chapelle, La Chapelle Sport, 7.Modifier, Candie’s, La Babite, La Chapelle Homme, Pote and La Chapelle Kids.
As of the end of 2014, the group’s had 6887 retail points in some 2200 locations, comprising mainly department stores and shopping malls, in cities across all 31 provinces, autonomous regions and municipalities in the PRC.