DKNY And Donna Karan Will Set Up Greater China Market Operation Company Shen Wenfeng Will Be CEO.

According to the world clothing and shoe net, the restructuring of the international brand Chinese market has been continuously happening in the past month. Both Chinese companies and seven wolves have acquired the controlling rights of Karl Lagerfeld Greater China, and the case of the acquisition of VIVIENNE TAM's ownership in mainland China has been reported.

And Donna Karan will set up an operation company in the Greater China market.

The two sides of the paction analyzed:

The company is jointly owned by the above-mentioned brand owners G-III Apparel Group Ltd. (NASDAQ:GIII) and Amlon Capital BV, held by Fred Gehring, a senior investor in the industry.

G-III is a world-renowned clothing manufacturer and distributor. At the end of 2016, it purchased Donna Karan International (hereinafter referred to as DKI) for 650 million US dollars. At present, G-III is doing the restart of DKI in various regional markets.

Fred Gehring is currently the vice-president of PVH Corp. (NYSE:PVH), a well-known clothing group in the United States, and has served as chairman and CEO of the group's Tommy Hilfiger.

Fred Gehring has long invested in brand names with Hongkong fashion tycoon Cao Qifeng, and has helped to introduce international brands to Asia, especially in the Greater China market.

Joint venture analysis:

The G-III of the joint venture company accounted for 49% of the shares, while Fred Gehring's Amlon Capital BV held the remaining shares and invested $25 million.

Fred Gehring will be the chairman of the joint venture company, and Steve Shen Shen Wenfeng will be the CEO of the company.

Shen Wenfeng was previously the chief executive officer of Tommy Hilfiger China, but the Tommy Hilfige China joint venture company had already been fully bought by PVH Corp., and was classified as self run.

Before serving the Tommy Hilfige China joint venture company, Shen Wenfeng is the general manager of Esprit's China.

The joint venture will be officially launched in January 1, 2018.

Management analysis:

G-III chairman and chief executive officer Morris Goldfarb said that the performance of Fred Gehring in Tommy Hilfige has proved that he is unique in the industry. He is also a close partner of the company's shareholding brand Karl Lagerfeld. We are very pleased to be able to strengthen cooperation and concern with him, and Shen Wenfeng has also made outstanding performance in the Chinese market. We look forward to working with these experts who have experienced retail experience, which is a great opportunity for the company.

Fred Gehring commented: DKNY and Donna Karan are real.

Only a few brands have such a position. We are glad that G-III can invest and develop these two brands in China. My long-term partner Shen Wenfeng has successfully operated two brands of Esprit and Tommy Hilfige in China, and I believe he will continue to succeed in the new brand.

Shen Wenfeng said that in China, DKNY and Donna Karan have great potential for growth. I am very glad to cooperate with Fred Gehring, Morris Goldfarb and two leading companies.

DKI status and analysis:

Designer Donna Karan in 1984 and its sculptor husband Stephen Weiss joint Inc. Takiyho co founded Donna Karan International Inc., the same name main line brand Donna Donna, but luxurious but modern and simple, 1988 launched the sub line brand, the fashion, leisure and avant-garde, the two lines all interpreted the "Wei" as the authentic NEW Yorker's atmosphere of the metropolis, and its first advocating "7 pieces of basic products" dressing way has become the modern women's dressing philosophy.

After the listing of Donna Karan International Inc. on the New York stock exchange in 1996, with the evolution of the fashion style, the brand of the three legendary designer brands of the United States gradually faded with the evolution of the style of Calvin Klein and Ralph Lauren. Until 2001, it sold to LVMH SE, which wanted to expand the US market.

After the acquisition of DKI at the end of last year, G-III handed over the distribution rights of DKNY women's clothing and handbags and accessories business to the Macy s Inc. (NYSE:M) Messi department store in March. In May, it authorized the DKNY men's wear and sportswear business authorization to its most important partner, PVH Corp., including design and distribution rights.

This DKI's operation right in China is undoubtedly the operation of the other most important market of the brand after the North American market has settled.

Donna Karan entered the Chinese market in 1993, and the Joyce Boutiques, a well-known boutique retailer in Hongkong, opened a shop in Shenzhen. It is one of the first Western designer brands to enter the Chinese mainland market.

For a long time, the brand has been acting on China's business through ImagineX Junsi.

Market reaction:

G-III shares closed up 7.49% to $26.98 on Thursday.

More importantly, the group's most important partner, PVH Corp., delivered outstanding two quarter results on Wednesday, while raising its annual EPS and PVH Corp. Thursday's share price of 5.73% to $126.92.

More attention should be paid to the world clothing shoes and hats net.