Guifuren to provide logistics & inventory support to NextMart
07 Aug '07
3 min read
As part of the second agreement with Guifuren Garment, NextMart will further gain: • The right to open up its own shops under the name Guifuren 2.0. NextMart would assume the costs of establishing the Guifuren 2.0 stores. • An option to purchase 100% of Guifuren Garment and its full operations, including all retail stores, for a consideration of $2 million USD. $1.33 million USD of this consideration would be paid in cash and $667,000 USD would be paid through the issuance of NextMart common stock, valued at $0.30 per share. • Full inventory and logistical support from Guifuren Garment for NextMart's online direct sales operations. NextMart plans to leverage this logistical support to advance its integrated offline-online e-commerce model in the area of women's fashion and apparel.
Mr. Ren Huiliang, Chief Executive Officer of NextMart commented, "As a result of these two agreements, we have advanced our portfolio of branding, design, media/marketing, apparel production and nationwide distribution capabilities necessary to break into China's retail market in fiscal 2008."
"Going forward, we plan to use our retail space in Guifuren Garment's clothing stores to market our own NextMart private labels and other third party brands."
"We plan to leverage Guifuren Garment's free back-end inventory and logistical support to build out our online e-commerce model and service up to 40 million urban female consumers (hits/month) accessible through Her Village Media. Our ultimate goal is to link our online and offline operations and create China's leading direct sales enterprise for women's fashion and apparel."
Shanghai Guifuren Garment Co Ltd Based in Shanghai, Guifuren is an established producer of women's suits and apparel for mature urban professional women between the ages of 28 and 45.
Since its establishment in 1995, the Shanghai Guifuren Garment Co has successfully developed operational capabilities for clothing design, production, marketing and retail sales in China's five leading urban areas.
It has a customer base of mature women aging 25-40 and operates nearly 60 of its own women's clothing shops throughout Mainland China.
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.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
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