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Tag: GXG

  • L Catterton Asia to form JV sportswear

    L Catterton Asia to form JV sportswear

    LVMH-backed private-equity firm L Catterton Asia has launched a JV between two of its portfolio companies, Chinese menswear fashion group GXG, and Australian compression activewear company 2XU.

    The strategic partnership will enable both companies to capitalise on the growing fitness and sportswear market in China.

    Established in 2007, GXG has a portfolio of four brands – GXG, gxg.jeans, gxg.kids and Yatlas. Its lines are available in more than 2100 stores across China, as well as online through third-party platforms such as Tmall and VIPshop. Its e-commerce GMV is expected to surpass RMB2.5 billion (US$378.5 million) this year, an increase of more than 50 per cent over last year. The company also achieved record sales of RMB485 million in this year’s Tmall 11.11 shopping festival.

    Since acquiring a controlling stake in GXG last year, L Catterton Asia has been working with the company’s management team to expand into new categories. It has supported GXG by offering extra collaboration opportunities and helping with global expansion.

    “GXG and 2XU are led by seasoned management teams with deep understanding and complementary knowledge of the fashion and retail industries, and we look forward to continuing to work alongside and support both teams,” says L Catterton Asia chairman/managing partner Ravi Thakran.

    Founded in 2005, 2XU produces technical athletic wear that is endorsed by elite athletes internationally.

    “Since L Catterton Asia’s investment in 2013, 2XU has experienced significant growth and I am grateful for their partnership as we continue to expand into attractive markets around the world,” says 2XU CEO Paul Higgins.

    With more than $14 billion of equity capital across six fund strategies in 17 offices globally, L Catterton has a team of more than 140 investment and management professionals. L Catterton Asia (previously L Capital Asia) was launched in 2009 and manages more than $ 1.6 billion across two private equity funds, and more than $2 billion including co-investments. It has offices in Singapore and Mauritius, with a regional advisory presence in Hong Kong, Mumbai and Shanghai.

    L Catterton Asia draws on its strategic relationship with Groupe Arnault and LVMH across the investment process. Its investments include Jorya Group, Marubi, Pepe Jeans, Sasseur, Trendy International and YG Entertainment.

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  • GXG joins an Australian sportswear brand

    GXG joins an Australian sportswear brand

    Australian compression and high-performance sportswear brand 2XU has formed a JV with Chinese fashion retailer GXG as part of an Asia expansion plan.

    This will give it access to more than 1 billion Chinese consumers, and 2XU plans to add special apparel lines for the market. China’s gym and fitness industry has been growing at an annualised rate of 11.8 per cent since 2011 and generated nearly US$4.6 billion in revenue last year.

    Under the JV, 2XU plans to open up to 50 retail stores throughout mainland China in the next three years as well as its online and wholesale business.

    CEO Paul Higgins says the move is significant for the business, which launched in Melbourne 12 years ago. It first entered Asia in 2008 with a wholesale presence in Hong Kong and Singapore, and is now in 13 markets across Asia Pacific. It plans to increase its stores from 22 to 50 in the next 12 months, and to 100 in the next three years.

    Growth in the sportswear market in China has been driven by an upswing in sports participation rates. About 2.8 million runners last year took part in events, according to the Chinese Athletic Association – double the number in 2015. However, the number of gym attendees across 70 major cities has grown by up to 5 million every year since 2011.

    Already 2XU has been generating 51 per cent year-on-year growth in Asia Pacific in the past 12 months. The brand is available in Mainland China via concept stores in seven major cities, and has retail and wholesale channels in Hong Kong, Indonesia, Japan, Malaysia, Singapore, South Korea, Taiwan, the Philippines and Vietnam.

    Under the new JV, 2XU Performance Centres will start opening in major Chinese cities from early next year.

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