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China’s Bosideng invests in Bangbao; 80 self-operated stores and counters expected in next 3 years

Chinese clothing giant Bosideng International Holdings, on Friday said that its subsidiary Talent Shine International Limited (Talent Shine) invested CNY150 million (USD24.4m) in Shenzhen Bangbao Fashion Wear Company Limited, which owns the ladies’ wear brand "BUOU BUOU", and acquired its 30 percent interests.

Established in 2004, "BUOU BUOU" is a high-end ladies’ wear brand in China targeting urban women aged between 30 and 45. According to the unaudited financial figures for the year ended on 31 December 2012, Bangbao recorded a turnover of CNY269m and a net profit of approximately CNY68m.

Bosideng, which owns down apparel brands Bosideng, Snow Flying, Combo and Bengen, is the largest maker and distributor of down clothing in China. The group has been actively exploring opportunities to acquire non-down apparel brands with high development potential and good reputation. Currently, the group has non-down apparel brands Bosideng MAN, JESSIE ladies’ wear and Mogao casual wear. It aims to strengthen the distribution network of its JESSIE brand in North China by the acquisition of Bangbao’s interests.

"JESSIE’s distribution network mainly covers Southern China while ‘BUOU BUOU’ has stronger presence in the northern area. The strategic investment will be conducive to JESSIE’s future network expansion. It will also diversify the group’s product offerings to meet different customers’ tastes and needs," said Zhou Meihe, General Manager of Talent Shine and JESSIE ladies’ wear.

By the end of June 2013, Bangbao owns 113 self-operated stores and counters as well as 127 franchised stores. The company plans to add 80 self-operated stores and counters in the next three years.