Coffee and fashion have come together in a deal between Shanghai La Chapelle Fashion’s wholly owned subsidiary LaCha Fashion 1 and TNP1 HK, which holds the franchise rights for Segafredo Zanetti Espresso Cafe.

On completion of the US$3.75 million deal, La Chapelle will directly hold 20.75 per cent of TNP1 shares. TNPI holds the Segafredo franchise rights for South Korea and the PRC (including Hong Kong). The Italian brand provides light food items and beverages through its global network.

YG Plus, a subsidiary of Asian entertainment group YG Entertainment, and South Korea’s KB Financial Group injected capital into TNPI, providing extra financial support for Segafredo.

Segafredo coffee shops in greater China import beans from Italy, while the cheesecake it sells are provided by The Cheesecake Factory. La Chapelle will open Segafredo coffee shops within its apparel stores to enhance the customer experience and also help the Italian brand exp[and in China.

Segafredo has been seeking a strategic partner to support its expansion in China, and has worked with different brands including Mercedes-Benz, Samsung and Korean entertainment company Namoo.

“Apparel retailers must capture the first-mover advantage and expand market share by enhancing the shopping experience and adding value,” says La Chapelle executive vice-president Wang Yong. “We believe the investment in Segafredo will generate synergies for the group’s overall business and support our long-term rapid growth.”

Founded in 1998, La Chapelle designs, markets and sells apparel products with a focus on mass-market women’s casualwear. It has a network of more than 7890 retail points in about 2500 locations across China.