Home / Knowledge / News / Apparel/Garments / Onward Holdings, Laox tie up for clothing JV
Onward Holdings, Laox tie up for clothing JV
23
Jun '15
Japanese apparel maker Onward Holdings and electronics retailer Laox have announced that they will establish a clothing joint venture in September in an effort to tap the purchasing power of Chinese middle-class consumers, according to media reports.

The main selling point of the products will be their Japanese-made quality. They will be sold using Laox's sales network, which includes duty-free shops in Japan and online shopping sites in China. Sales are targeted at 20 billion yen ($162 million) within three years. The Tokyo-based company will start off with 400 million yen in capital.

Onward will chip in 51per cent while Laox will provide the other 49 per cent. The parent companies will develop new products reflecting Chinese tastes. They are also considering starting a new brand.

Chinese Internet sales will begin in September. After that, the products will be sold in Laox stores in Japan. The parent companies will also explore sales in other Asian countries, promoting the high quality of Japanese-made products.

Laox entered the apparel business earlier in June 2015 by creating a Japanese clothing brand. The company will continue bolstering its fashion-related enterprise by purchasing a women's shoe company in July. It wishes to lift clothing to over 10 per cent of all sales. Onward will lend its strength in product planning and material procurement, as well as its network of domestic sewing plants.

The Japanese clothing market is losing steam. Manufacturing expenses are climbing due to the weak yen and rising labor costs in China. Onward is continuing to restructure, an effort that includes discontinuing unprofitable youth brands.

Developing the Chinese market is a major challenge for Onward.That is where Laox comes in with its strong name recognition among Chinese consumers.

By teaming up with Laox, Onward will make a full leap into the Chinese online retail business, which is expected to expand rapidly.

"There is a chance that existing operations in China will coordinate with the joint venture," said Onward President Michinobu Yasumoto. (SH)

Fibre2fashion News Desk – India


Must ReadView All

Courtesy: Bangladesh Bank

Apparel/Garments | On 22nd May 2018

Bangladesh Bank enhances EDF loan limit to $25 million

Bangladesh Bank has enhanced the loan limit under Export Development...

Sri Lanka's textile imports up 32.5% in February 2018

Textiles | On 22nd May 2018

Sri Lanka's textile imports up 32.5% in February 2018

In what might be an indication of higher exports in the coming...

Provide power at Rs 8/kWh to textile units: APTMA

Textiles | On 22nd May 2018

Provide power at Rs 8/kWh to textile units: APTMA

All Pakistan Textile Mills Association (APTMA) has asked the...

Interviews View All

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Top executives
Textile industry

Defining MSMEs on the basis of turnover makes it simpler to do business

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Paolo Crespi

For.Tex is an Italy-based leading producer of dyes and thickeners, and is...

Akshat Chaudhary

Aizome, Asia's first Fairtrade denim brand, is all set to launch next...

Harsh Shah

Fynd is the central online shopping destination for fashion, offering...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


May 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search