Victoria's Secret announced it intends to sell a minority stake of its business to Regina Miracle International, a Hong Kong-based clothing company, in the first quarter of 2022 following regulatory approval.
The companies have entered into a joint venture, whereby Victoria's Secret will retain a 51% ownership stake. Regina Miracle International will buy the remaining 49% in a $45 million cash deal. The joint venture will also oversee all Victoria's Secret retail stores in China, as well as its related online business.
"Together with Regina Miracle, we aim to grow the China business through joint investment in product development, distribution, and marketing," said Victoria's Secret CEO Martin Waters. "We expect the partnership will positively impact the speed and agility of the business to benefit consumers and provide us with a platform for a strong future in this important market.
Joint-Venture Expansions
Victoria's Secret Sells Minority Stake to Regina Miracle International
Trend Themes
1. Joint-venture Expansions - Companies are entering joint ventures to expand their businesses quickly by combining resources and expertise.
2. Foreign Investment in China - Foreign companies are increasingly investing in China to tap into its growing consumer market and benefit from local expertise.
3. Retail and E-commerce Partnerships - Retail companies are partnering with e-commerce companies to expand their online sales and reach more customers.
Industry Implications
1. Fashion - Fashion companies are seeking new growth opportunities and expanding their businesses through joint ventures and partnerships.
2. Retail - Retail companies are partnering with other companies to expand their reach and improve their product offerings.
3. E-commerce - E-commerce companies are partnering with traditional retailers to reach more customers and expand their sales channels.