Hot Kiss Heads to China
Los Angeles–based junior apparel maker Hot Kiss Inc. has signed a long-term licensing agreement with Zhejiang Xuege Fashion Co. Ltd., the retail arm of one of China’s largest apparel conglomerates.
The agreement was brokered by Van Nuys, Calif.–based Cherokee Inc., which markets, licenses and manages apparel brands for Target stores, Marshall Field’s and The TJX Companies Inc. The company also has partnerships with retailers Zellers in Canada, Tesco in Ireland and the United Kingdom and Shanghai Bolderway in China.
The deal, which marks Hot Kiss’ first licensing agreement in Asia, calls for Zhejiang Xuege to open 200 free-standing Hot Kiss stores over the next five years. About 40 stores are slated to open during the first phase—beginning spring 2004—with more to follow.
Zhejiang Xuege will be responsible for the merchandising and sale of Hot Kiss junior and girls’ apparel, accessories, sunglasses, watches and footwear.
“Cherokee, with its global reach, introduced us to a variety of potential licensees for the Hot Kiss brand,” said Hot Kiss Chairman and Chief Executive Officer Moshe Tsabag. “Through this new partnership with Xuege, we look forward to expanding our customer base and our product offerings.”
Zhejiang Xuege is a multi-million-dollar apparel conglomerate that owns several hundred retail stores under the Xuege nameplate.
The companies did not disclose the financial details of the deal.
Hot Kiss is on track to earn $50 million by the end of the year, according to Tsabag. The company projects that sales for its retail operations in China will exceed $80 million over a five-year period, he added.
The merchandise mix will include junior denim, sportswear and dresses and girls’ dresses and denim. Tsabag said Zhejiang Xuege will use its affiliated manufacturing companies to produce the lines, which will be based on Hot Kiss’ U.S. design direction.
Plans to roll out stores domestically are currently underway, Tsabag said.
Currently, Hot Kiss is negotiating a licensing agreement for intimate apparel. The company currently has licenses for footwear, watches, handbags, sunglasses and other accessories, Tsabag said. —Claudia Figueroa
