Luxury Outerwear Brand Nobis to Enter China Market Via Ellassay Joint Venture
SHANGHAI — Ellassay Group has revealed a joint venture with Canadian luxury outerwear brand Nobis.
Under the newly established Nobis (Shenzhen) Clothing Co. Ltd., the Shenzhen-based Ellassay will invest 40 million renminbi, or $5.6 million, and hold a 50 percent stake in the joint venture. Nobis will invest in the form of intellectual property valued at the same amount and hold a 50 percent interest in the joint venture.
More from WWD
B.B.C., Chicago's Beauty Retailer Offering Black-owned Brands, Expands to L.A.
PubMatic and Klarna Partner for Programmatic Advertising, Increasing Engagement Rates
LVMH Expands Partnership With Alibaba Group to Deploy AI in China
Ellassay will help expand Nobis’ retail business in mainland China, Hong Kong and Macau. According to the companies, Ellassay will also produce Nobis’ outerwear, ready-to-wear and accessories.
Kevin Au-Yeung, president and cofounder of Nobis, said the partnership sprang from a mutual understanding of luxury retail, in particular how a technical and functional brand should live in a luxury space.
“We’re super excited about this partnership, and to double down on the trust and the efficacy,” added Robin J. Yates, vice president and cofounder of Nobis.
Founded in 2007, the Toronto-based outerwear and accessories label that targets urban adventurers is available in 35 countries, operates four flagship stores and counts Nordstrom, Ssense and Matchesfashion as its key retail partners.
Ellassay was founded in 1990 as a womenswear brand. The apparel company has acquired a portfolio of high-end fashion labels over the past eight years, aiming to become a globally recognized contemporary fashion group. Its stable of contemporary labels includes Self-Portrait, Vivienne Tam, Laurèl, Iro, Ed Hardy and Jean-Paul Knott.
“Adding the Nobis brand to the fold will help us create a stronger brand matrix,” Ellassay wrote in the announcement. “Gaining a foothold in the technical apparel space will strengthen our ties with consumers and consolidate the company’s competitive edge.”
The joint venture is a timely move as Ellassay joins other local players in the race to take market share in China’s burgeoning outdoor sports market.
Driven by the 2022 Beijing Winter Olympics, sports-related policy incentives and an urge to embrace Nature post-reopening, China’s outdoor sports market is expected to grow to around $90 billion by 2025, according to data from the consulting firm A.T. Kearney.
In 2018, China sportswear giant Anta Sports Products Ltd. purchased Amer Sports for 4.7 billion euros, or $5.4 billion. The Finnish outdoor gear-maker is the owner of brands including Salomon, Arc’teryx, Wilson Sporting Goods and Peak Performance. After the acquisition, its star brand Arc’teryx came to be known in the China market as the “Hermès of outerwear.” According to Anta’s 2022 annual report published in May, Arc’teryx is making “steady progress” to reach 1 billion euros in revenue.
In early 2021, Helly Hansen, the Norwegian outdoor equipment brand, entered the China market via a joint venture with Youngor Group, a Chinese apparel company that also holds a minority stake in Alexander Wang.
In December 2021, China’s largest down outerwear-maker Bosideng formed a strategic joint venture with Bogner to bring the skiwear company to the Chinese market.
Best of WWD
