French clothing retail giant Beaumanoir Group announced that it will sell a majority stake in its Chinese business to Zhongke Tongrong Investment Fund Management (Beijing) Co., Ltd. (hereinafter referred to as “Zhongke Tongrong”), a private equity investment company headquartered in Beijing. The specific transaction amount No official announcement has been made yet.
Roland Beaumanoir, founder and chairman of Beaumanoir Group, said that due to the impact of the epidemic, the group decided to focus its development this year on the French local market and concentrate on the development of the women’s clothing brand Naf Naf acquired from competitor Vivarte Group. And La Halle, “In order to ensure our vitality in the Chinese market, we decided to cooperate with powerful local apparel retailers in China.”
Image source: Cache Cache official website
Why choose Zhongke Tongrong? Roland Beaumanoir mentioned in an interview: “Beaumanoir Group mainly operates women’s clothing brand Cache Cache in China. Since entering China in 2005, Cache Cache has 550 stores in China, but these stores are mainly distributed in third- and fourth-tier cities, second-tier and second-tier cities. The store occupancy in the above cities is low.” Currently, Cache Cache has 550 stores in China, but these stores are mainly located in third- and fourth-tier cities, and the store occupancy in second-tier and above cities is low.
Cache Cache’s development in the Chinese clothing market benefits from its unique franchise policy.
Picture source: Screenshot of Cache Cache official website
You must know that 70% of Cache Cache stores are Dealer stores and 30% are self-operated stores. The way to cooperate with dealers is to recycle the inventory generated by their stores. Dealers do not need to bear the risk of inventory in the store. For example, a 100% return system is implemented for out-of-season products. At the same time, dealers also enjoy a 40% gross profit margin.
After selling its business in China, Beaumanoir Group decided to focus its development this year on the French local market and concentrate on the development of the women’s clothing brands Naf Naf and La Halle acquired from rival Vivarte Group.
Roland said: “We have observed that since acquiring the Chinese business of Dutch fast fashion brand C&A in September 2020, Zhongke Tongrong has become an important participant in the Chinese clothing retail market. The epidemic has also made the Chinese market There have been great changes, and we need to cooperate with a strong industry player who has a deep understanding of China. I believe that with the help of Zhongke Tongrong, Cache Cache can accelerate omni-channel deployment and achieve better development.” . </p
