MILAN, July 31 (Class Editori) - BasicNet reacquires the Kappa brand in Japan from the Chinese DongXiang. The rights for the utilization of the brand in the Japanese archipelago were transferred in 1994 by the new BasicNet company to Phenix, the Japanese licensee company, in order to finance the acquisition of the Knitwear and Shoe factory from Turin. In 2008, the Phenix group was acquired by DongXiang, owner of the Kappa brand for China and Macao since 2006.
The Japanese one is the key market in the sportswear field. In 2019 the sales of Kappa branded products in the area accounted for more than $30 million. With new licensee partners, BasicNet is aiming at giving an important boost to the brand development on the territory. The operation which will be closed in the following months has been managed through BasicTrademark, strongbox of the group brands, and it provides for an equivalent of $13 million.
“I suppose that the satisfaction for the Kappa brand re-purchase in Japan is really huge. With the entry into BasicNet system by the third global economy, the strategic project for the ‘little men’ brand has been globally accomplished”. The DongXiang group will autonomously manage the People’s Republic of China and the BasicNet in the rest of the world”, as Marco Boglione, President of BasicNet group, has explained.
“The transfer allows the group to better exploit its resources and focus on the brand Kappa development in the People’s Republic of China: a long-term development which the group and the shareholders as well are interested to. Therefore, we will go on, as always, to develop our business in China through a multibrand strategy, and to explore the market opportunities”, Chen Yihong, President and Executive Director of China Dongxiang, has added.
And he affirms “today, the reacquisition of Kappa Japan by BasicNet proves our strong and pleasant collaboration. In almost two decades of cooperation, I am glad we have always respected both our interests, by continuing to strengthen our collaboration. I would like to express my sincerest gratitude towards Marco Boglione. I hope we can further enhance what we have achieved in the past and we are enthusiast we can work together on new projects in order to make the century-old brand Kappa reach new goals”.