The Children's Place has announced an exclusive licensing agreement for the greater China market with Zhejiang Semir Garment, the force behind China's largest specialty children's apparel retailer Balabala. CEO Jane Elfers says the tie-up is a "game changer" that "fundamentally changes the trajectory of the international growth opportunity" and could add up to $150 million to annual sales in five years.
Semir, through their Balabala brand, currently operates and franchises approximately 4,400 children’s apparel stores and has the largest children’s apparel ecommerce business in China through partnership with third party platforms, such as Tmall, JD and VIP. Over the first five years of this agreement, Semir will execute an omni-channel strategy by opening at least 300 Children’s Place locations in greater China. This partnership is projected to generate $125 million to $150 million in retail sales in year five.
David Xu, President of Balabala, says, The Children’s Place will bring unique quality, fashion and value to the customers in China. The combination of deep knowledge of the market, the strong retail experience and local sourcing capabilities with the innovative design and appeal of The Children’s Place apparel, accessories and footwear will result in unsurpassed market reach creating significant value for shareholders of both companies.
