Kappa and Taobao.com form strategic alliance The first Kappa online flagship store opens in September 2009
[20 Aug 2009, Hong Kong] The leading international sportswear brand enterprise in the PRC, China Dongxiang (Group) Co., Ltd. ("China Dongxiang" or "the Company"; stock code: 3818, together with its subsidiaries the "Group") announced a strategic partnership with Taobao.com, the leading e-commerce platform in the PRC. Kappa’s first official online flagship store will open for business online at the Taobao Mall on 1 Sept 2009. Consumers in China will enjoy the ease of shopping Kappa’s products at home via the Internet.
Currently, the Kappa brand is one of the top three international sportswear brands in the PRC with over 3,000 retail stores throughout the nation, while Taobao.com occupies the dominant position in the PRC’s C2C market with an 80% market share in the industry. Kappa will benefit from the huge membership base and the extensive online resources advantages of the Taobao.com e-platform to further increase the awareness and influence of the Kappa brand. The Kappa online flagship store will become a brand new sales and marketing channel of the Group.
Mr. Ren Yi, General Manager in charge of China Business of China Dongxiang, said, "According to iResearch, the online shopping market in the PRC is estimated to reach RMB238.8 billion in 2009. The market had developed at an unprecedented pace at an average annual growth rate of more than 100% over the past four years. Seeing the enormous opportunities in the e-commerce market, in particular the potential of online apparel sales, Kappa fosters strategic alliance with Taobao.com to extend Kappa’s differentiation strategy to the world of Internet so as to maintain Kappa’s leading position in the fashion sportswear market."
Mr. Zhang Yong, CFO of Taobao.com and person in charge of the Taobao Mall, said, "As the leading e-commerce platform in the industry, Taobao Mall will assist Kappa in developing the online sales and marketing channel, while providing our customers with more high quality and competitive products to achieve win-win situation."
About China Dongxiang (Group) Co., Ltd.
China Dongxiang (Group) Co., Ltd. is a leading international sportswear brand enterprise based in China and was successfully listed on the Stock Exchange of Hong Kong Limited on 10 Oct, 2007. The Group is primarily engaged in the design, development, marketing and wholesale of branded sportswear in China. Currently, China Dongxiang owns all rights to the internationally recognized Kappa Brand in China, Macau and Japan. Its products convey an active, fashionable and youthful image and are warmly welcomed by China’s fast growing and high potential consumers. The Group finished its acquisition of a Japan sportswear enterprise Phenix on 30 April 2008. The international brand "Phenix" has the greatest market share in the skiing and outdoor sportswear market in Japan.