Hong Kong women’s apparel company Niologie Limited has received a capital injection of RMB20 million (US$3.034 million) for its wholly owned subsidiary Niologie China from one of China’s largest fashion brands.
Shanghai La Chapelle Fashion gains a direct holding of 16 per cent of the shares of Niologie China through the investment co-operative agreement with its wholly owned subsidiary Shanghai La Chapelle Enterprise Management.
Originating in Hong Kong, Niologie China’s Tanni brand is a mid- to high-end lifestyle store brand with romantic European styling encompassing women’s apparel, handbags, footwear and accessories as well as houseware products. A significant characteristic of the brand, which entered mainland China in 2010, is its floral prints, designed exclusively by a UK team.
Shanghai La Chapelle believes the investment complies with its “product-oriented, fashionable and high-quality” brand philosophy, and will help it consolidate its leading position in China’s apparel market. Through the investment in Tanni, the group aims to enrich its mid-range to high-end product mix and accelerate the development of its multi-brand strategy, while the brand itself can leverage the group’s channels and supply-chain management capability for expansion and improved margins.
“With the constantly changing fashion trends in apparel and the need to satisfy consumers’ requirements for a more sophisticated shopping experience, apparel retailers have to adjust their sales model in order to capture first-mover advantages and expand market share amid intense market competition,” says La Chapelle executive VP Wang Yong.
“The Tanni brand has an independent design team, offers individualised products, stable domestic and overseas product channels, an excellent marketing system and speedy and stable logistics systems enabling a fast market response.”
Founded in 1998, La Chapelle designs, markets and sells apparel products with a focus on mass-market women’s casualwear. Its retail network comprises 7893 outlets in about 2500 locations across China.
Founded in 2010, Niologie China is the first women’s apparel brand chain in China to introduce European lifestyle-brand shops. The company has directly run shops in major business districts in Beijing, Nanjing, Hangzhou, Shenyang, Dalian and Harbin.
