Canada’s Nobis has inked a joint venture with Chinese apparel distributor Shenzhen Ellassay Fashion, to manufacture and sell the luxury outerwear brand in mainland China, Macau and Hong Kong.
SEE ALSO: Subway to open 4,000 locations in China with new master franchise agreement
Under the agreement, Ellassay will invest CNY 40 million (USD 5.7 million) to form a 50-50 joint venture with Nobis that will produce and sell the Canadian company’s down jackets, ready-to-wear accessories, and other items, the Shenzhen-based firm said.
Dubbed ‘Nobis (Shenzhen) Clothing Co. Ltd’, the joint venture will see Nobis award the intellectual property of the registered trademark to the entity, according to the Chinese company. The partners will then each recommend one co-chairman.
Founded in 2007 in Toronto by former Canada Goose executive, Robin J. Yates, Nobis is a luxury outerwear and accessories label, which is now available in some 35 countries. While it is yet to open physical stores in China, Nobis currently has a flagship store on Alibaba’s Tmall e-commerce marketplace.
Founded in 1990, Ellassay started out as a womenswear brand, before acquiring a portfolio of high-end fashion labels including Self-Portrait, Vivienne Tam, Laurèl, Iro, Ed Hardy and Jean-Paul Knott.
China’s luxury goods market is set to hit CNY 816 billion (USD 112 billion) by 2025, according to a report by PwC, accounting for a staggering quarter of the global industry.