Hugo Boss AG has purchased back the 40% stake in its joint venture from its China-based franchise retail partner Rainbow Group.
Now Hugo Boss has full control of the Chinese Mainland and Macau retail network of its luxury clothing brand.
Hugo Boss AG and Rainbow Group established a joint venture in July 2010, with Hugo Boss AG holding a 60% stake and Rainbow Group holding the remaining 40%. Hugo Boss AG said due to the professional operation of Rainbow Group, the Chinese business of the Hugo Boss brand achieved triple growth since 2009.
At present, Greater China is the fourth largest market for Hugo Boss AG. In the 2013 financial year, Hugo Boss' 126 independent stores and stores-in-store in mainland China, Hong Kong, and Macau contributed revenue of EUR211 million, accounting for 9% of the total revenue of the group. Meanwhile, the joint venture's 55 stores in mainland China and Macau contributed EUR94 million.