Project name

Designer Label Apparel

Cooperation form

Equity JV

Project description

Production scheme
Construction plan
Market analysis
Operation scale
Sales forecast

   Project scale: annual sales of design label apparel at RMB 160 million.
    Ningbo Rouse Group intends to set up a JV with an overseas noted garment manufacturer. The JV will be engaged in garment development and manufacturing. The foreign partner may either subscribe to the equity capital of the existing Chinese enterprise, or set a separate joint venture, or acquire existing equities of existing shareholders. The foreign partner is expected to provide support in technology and equipment and at the same holds less than 50% equities in the JV. The Chinese partner hopes to further exploit the market by taking advantage of the brand strength and marketing network of the foreign partner.
    In the coming years, the Chinese partner will make an effort to further develop its sales network and promote the brand image. It plans to launch 8 to 10 brands and build 3 to 4 name brands of national or provincial recognition.
    Annual sales income is forecasted at RMB 160 million and annual profit at RMB 19.2 million.

Equipment import & material supply

Investment estimate & cost efficiency

Total investment

USD10 million

Registered capital

USD5 million

Annual sales

RMB160 million

Anticipated means of investment from foreign partner

Annual profit

RMB19.2 million

Foreign exchange

Technology

Equipment

Brand name

Others

Internal return rate

23.65%

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Payback period

3.6 yrs

Basic facts of Chinese partner (ownership, total and fixed assets, current products and sales, current equipment and technology, support facility, etc.)

   Ningbo Rouse Group Co., Ltd. is a modern and private shareholding enterprise combining the design, development, production and sales (export too) of garment. It is also engaged in high-tech industries and real estate industry. As of end 2003, the company has total assets of RMB 600 million, annual sales of RMB 785 million and employs over 4500 people. The main products are shirts, business suits, leisure wear and so on. It owns the designer labels like “Rouse” and “Rouse-Fred” as well as 1000 franchise shops across China. Its shirts has some 9% domestic market share, ranking second in the country for years on end.

Project location & geographic advantage

   The project is located in Shiqi Sub-district, in the central area of Yinzhou District, west of Beilun Port, close to Yinzhou Avenue and Ningbo airport, with convenient air, water and land transportations. The Yangtze Delta regions, especially cities like Shanghai and Hangzhou have huge market demand for garment.

Project status quo

   At marketing stage   

Project data available

Investment promotion material   

Organization to contact

Foreign Investment Promotion Bureau of Yinzhou District

Person to contact

Wang Xianfeng

Address

13/F, 886 Ningbo Baizhang East Road, Ningbo

Postcode

315040

Telephone

0086-574-87838068

Fax

0086-574-87396889

E-mail

webmaster@yinzhouchina.com.cn  

Website

www.rousegroup.com