Folli Follie Group and Fosun International announced in a joint Press Conference their global strategic partnership
Folli Follie Group, the Greek retail group with a global presence that operates in fashion, travel retail and wholesale-retail, and Fosun Int’l (Fosun, 00656HK), a large China-based holding company with a portfolio of different businesses, signed a Memorandum of Agreement, setting the ground for the strategic alliance of the two Groups. Mr. George Koutsolioutsos, CEO, Folli Follie Group, and Mr. Liang Xinjun, Vice Chairman and CEO, Fosun Group, established the cooperation between the two Groups in the joint Press Conference attended by representatives of the Greek government, governmental bodies and business associations, media representatives, representatives of the business world and partners.
With a previous announcement, the two Groups made public Fosun Group’s decision, together with its affiliate, to become shareholders of Folli Follie Group and to acquire an aggregate of approximately 9.5% of the enlarged share capital of Folli Follie Group. Thus Fosun, together with its affiliate, will acquire the newly-issued stock by way of a private placement and will jointly become one of Folli Follie Group’s largest strategic investors. At the same time, this strategic alliance is translated in a close cooperation of the two Groups in order to achieve their business development in China as well as in other parts of the world.
Mr. George Koutsolioutsos, CEO, Folli Follie Group, stated: “Folli Follie, member company of the Folli Follie Group, has close business relations with China and a presence in the greater China area for more than 10 years. Nowadays, Folli Follie and Links of London have more than 100 stores in China, a market that is dynamically incorporated in Folli Follie Group’s strategy for business development. Acknowledging the strong economic development of China, in a global economic scene that is constantly changing, Folli Follie Group invests significantly in the country and our alliance with Fosun Group comes as a verification of our excellent business and commercial relations with China. We are positive that this partnership will mutually benefit both Groups, empowering the Folli Follie Group presence in China and the Fosun Group presence in Greece.”
Mr. Liang Xinjun, Vice Chairman and CEO of Fosun, added: “ China is on the way to become the largest consumer market in the world. Among all sectors, premium consumer goods consumption has achieved a stunning CAGR of 25% in the last 3 years, which is far more impressive than the GDP growth of China. According to the forecast by BCG, China will become the largest luxury consumer market, exceeding Japan, by 2015. We believe that Folli Follie and Links of London, as affordable luxury brand, will benefit significantly from the growing domestic consumption in China. Furthermore, Folli Follie Group will also benefit from the increase of Chinese tourists who will choose Greece as vacation destinations. As a responsible and active investor, Fosun will use our expertise and resources to help Folli Follie Group expand in China. We will help Folli Follie Group enhance brand awareness, sharpen brand image, accelerate new POS growth, explore multiple business models, expand into new business segments and gain access to premium customers. We believe the strategic partnership between Folli Follie and Fosun is win-win cooperation.”
China, a major growth driver for Folli Follie Group
In the promising market of China, Folli Follie Group aims, by offering its own brands Folli Follie and Links of London to China’s vast population, to make China one of its largest markets and to become one of the leading fashion and accessories groups in the country.
Meanwhile, Fosun’s investment focus has been on industries and assets that stand to benefit from China’s development trends and consumption growth. Fosun firmly believes that the collaboration between Folli Follie Group and Fosun will not only provide Chinese consumers with high quality fashion goods, but also allow stakeholders to share in China’s growth opportunities.
Folli Follie Group expects its future expansion plan in China to be strengthened and accelerated by Fosun’s expertise in retail business and resource sharing. The growth potential for both brands Folli Follie and Links of London is substantial, since the Folli Follie Group’s penetration in the Chinese market has started only recently.
Investment of Fosun in Folli Follie Group’s share capital
In the context of such strategic partnership, Fosun together with its affiliate intend to fully subscribe the new issued shares of Folli Follie Group, which is approximately 9.5% of the total share capital of the Folli Follie Group on the enlarged basis, with a view to enhancing Folli Follie Group’s long term strategy and becoming a strategic shareholder in Folli Follie Group.
One representative of Fosun will be appointed at the board of directors of Folli Follie Group.
Fosun is investing in the Folli Follie Group with a view to be a long term shareholder, and one of the company’s largest shareholders, as part of the commercial partnership with the Folli Follie Group and in view of Folli Follie Group’s current strategy.
