Van de Velde & Getz Partner on Lingerie Private Shop in China

Van de Velde and Getz will each own 50 percent of the newly established joint venture.

Private Shop, which has a predicted turnover for 2011 of around US$ 8m, has been active in lingerie retail in Hong Kong for 16 years and in PRC for five years. It operates 11 retail outlets in each of the regions.

The strategic intent is to expand the business across Hong Kong, Macau and PRC, with a clear positioning on 'Lingerie Styling,' while maintaining a multi-brand offering. 'Lingerie Styling' is a retail concept of Van de Velde that provides advice and service in the fitting room.

The Van de Velde brands will be launched in Hong Kong, Macau and PRC through the Private Shop retail network.

Daily management of the joint venture will be carried out by Getz, which holds the majority in the board of directors.

The total investment for Van de Velde is around US$ 7.5m, based on certain milestone criteria being achieved, for which Van de Velde obtains 50 percent of the joint venture, a number of intangible assets and a distribution agreement for its brands in the project. The partnership will be operational from early January 2012.

Van de Velde chief executive Ignace Van Doorselaere said: "We have a lot of respect for what Private Shop has achieved in the last 16 years and are proud to be part of this venture. This is an important step for our group. We believe Chinese women are entitled to the fitting room concept as we develop it throughout the USA, the UK and in continental Europe. It might take some time to firmly establish the concept, but we are very convinced about its long term success."

Getz Hong Kong managing director Stephen Lee added: "We see tremendous opportunities in China in the premium lingerie segment, which is fairly undeveloped at this stage. We believe this partnership will further strengthen Private shop's focus on customer service and allow us to truly establish a unique market proposition for Chinese women. Furthermore, the introduction of Van de Velde brands to our network will further improve and extend the quality product offering of European and American brands."

Getz Bros. (Hong Kong) Ltd. is a member of the Getz group, which is a US group running diversified operations in international trading, marketing and manufacturing, primarily focused in Asia.