Superdry sells Asia Pacific IP assets to Cowell Fashion Company-by Tong Van
Source:Insideretail Asia
British fashion label Superdry has signed an agreement with Cowell Fashion Company to transfer its IP assets in Asia Pacific to the South Korean firm for US$50 million.
Under the agreement, Cowell will own and use the Superdry brand in Asia Pacific, starting from its home market and extending to other regional markets, including China. Both companies will work together to develop products relevant to those markets.
“This agreement offers the Superdry brand a fantastic opportunity to expand its global reach, whilst providing additional funding to help deliver our turnaround programme in the face of the challenging consumer landscape,” said Julian Dunkerton, founder and CEO at Superdry.
The assignment of Superdry’s IP assets in Asia Pacific does not include India, Bangladesh, Pakistan, Sri Lanka, Australia and New Zealand where it will retain its IP rights. The company said the sale allows the company to focus on growing its brand and increasing sales in its more established territories where it has the strongest expertise.
Superdry announced its exit from China in 2020 after material losses were incurred. The brand said it has no plans to re-enter the market itself in the foreseeable future. It also added significant further investment would be required to rebuild its previous scale and volumes across the other territories in the region, particularly in China, and that is more likely to be successfully delivered through a third-party partner.
Superdry operates approximately 220 physical stores and 479 franchises and licenses, operating in 53 countries.
“The collaboration between Cowell Fashion … can be said to be the beginning of a paradigm shift in the Korean fashion industry,” said Lee Sun-seop, chairman of Cowell Fashion.
The South Korean-listed company focuses on licensing and manufacturing apparel products for established global brands across product areas including underwear, sportswear, and accessories.
