Hong Kong-based lingerie company Regina Miracle and Victoria’s Secret have formed a joint venture to operate all Victoria’s Secret stores and related online business in China. The deal is expected to close in the first quarter of fiscal 2022.
Victoria’s Secret & Co will sell a 49 percent stake in its China business to Regina Miracle International Ltd for US$45 million in cash, aiming to boost sales with the help of a local partner.
The joint venture shall carry out the China business comprising designing, developing, manufacturing, marketing and sale of certain lingerie, intimate apparel as well as marketing and sale of personal care and beauty products under the agreed trademarks of Victoria’s Secret in China through its subsidiaries.
YY Hung, Chairman, CEO & Executive Director of Regina Miracle, said, “We are honored and excited to be elevating our long-standing partnership with Victoria’s Secret through the formation of this joint venture in the promising China market. We are confident that our highly complementary strengths – Regina Miracle’s industry-leading innovation capabilities and market foresights as an Innovative Design Manufacturer, and Victoria’s Secret’s undisputed brand leadership, retailing and marketing expertise – will perfectly position this partnership in capturing the growth opportunities and creating value for consumers in China.”
Victoria’s Secret CEO Martin Waters commented, “I am delighted to announce this partnership with Regina Miracle, who has been a valued merchandise supplier partner for more than twenty years. Together with Regina Miracle, we aim to grow the China business through joint investment in product development, distribution, and marketing. We expect the partnership will positively impact the speed and agility of the business to benefit consumers and provide us with a platform for a strong future in this important market. This JV with Regina Miracle in China completes a multi-year repositioning of the International business of the Company and we believe establishes a platform for accelerated sales and earnings growth in the market over the next several years.”