Authentic Brands Group Announces Partnership with Baozun
By Gary Symons
TLL Editor in Chief
The legendary British bootmaker Hunter will sell 51% of its business in China to local firm Baozun Inc.
The deal was announced by Authentic Brands Group, which owns the Hunter Boots brand globally. Hunter is a global footware company known for having developed the Original Wellington boot, known in the UK as ‘Wellies’.
Authentic announced it will create a new subsidiary called ABG Hunter LLC. Baozun and Authentic would then enter into a joint venture for the brand in Greater China and Southeast Asia, with Baozun owning a 51% interest of Hunter’s intellectual property across the regions.
“We are thrilled to partner with Baozun to grow Hunter in this important region,” said Jamie Salter, Founder, Chairman and CEO of Authentic. “This strategic move is in line with our strategy to think global and act local.
“By partnering with Baozun, a leader in digital and ecommerce experiences in China and Southeast Asia, we are able to combine our expertise in brand management with their deep understanding of the local market nuances and cultural trends.”
Operating in local markets typically brings challenges to global brands as they adapt to cultural and political realities that can at times be very complex. China in particular has posed a number of issues particularly for companies in the apparel and fashion sector, with a number of clashes resulting between the Chinese government and a variety of major brands.
Working with a local partner is one way global brands have successfully navigated local realities in China and elsewhere.
This type of merger and licensing deal could be a sign of things to come for Authentic, which owns a portfolio of more than 50 major lifestyle, fashion, entertainment and media brands.
For example, the Authentic-owned Forever 21 brand had tried unsuccessfully a number of times to establish its business in China. Success for the Baozun partnership could well introduce a path forward for other brands as well.
Founded in 2007, Baozun is a leader in brand ecommerce service, brand management, and digital commerce service. The company has deep experience in working with Western brands in Asia. It currently serves more than 400 brands from various industries and sectors around the world, including East and Southeast Asia, Europe and North America.
Authentic and Baozun have also entered an exclusive, long-term license agreement through which Baozun will design, manufacture, market and distribute Hunter brand products in Greater China. The license agreement will be assigned by ABG Hunter LLC to Hunter IP Holdco as the licensor across the region.
“We are excited to share our recent partnership with Authentic Brands Group, a leading global brand management company that owns a large portfolio of more than 50 brands, including many iconic and world-renowned lifestyle brands,” said Vincent Qiu, Chairman and Chief Executive Officer of Baozun. “This marks another milestone in our transformation where all three business lines will cooperate together to deliver an extraordinary suite of services to leading global brand companies in China and other Asian markets.”