Fujian and Hong Kong, November 6, 2009 – Welkin today announced a growth equity investment in East Asia Sports (“EAS”), a leading sportswear retailer focused on urban low-income demographic in China. With more than 1,500 stores nationwide, EAS markets affordable sports apparel, footwear and accessories in third and fourth-tier cities in China under the “Qiuzhi” brand.
Since Welkin’s investment, EAS has significantly expanded their store network in central and north China and developed a successful casualwear product line to fuel their next phase of growth in China.
Commenting on the investment, Shaoying Ding, the CEO of EAS, said: “EAS is a leader in the low-income, mass-market segment of the sportswear market, which is highly fragmented and currently underserved. Our fast-retail supply chain and low-cost base are our key competitive advantages, which enable us to maintain low inventory levels while offering consumers the latest designs at affordable prices. We believe Welkin’s deep knowledge in retail, broad industry relationships and local team will help us further grow our business in China.”
“Despite lower pricing points, profit margins at EAS are consistently higher than that of premium brands, which reflects the unique strengths of their business model, distribution network and supply chain. EAS is well-positioned to rapidly gain market share by capitalizing on market fragmentation. As the first investor in EAS, Welkin will focus on leveraging its platform to help the company expand aggressively into northern China,” added Justino Liang, a Managing Director of Welkin.
“EAS has a strong management team with extensive retail expertise, product development experience and extensive supply chain relationships. We are confident EAS will continue to grow rapidly to become a leading niche player in China,” said Chris Fong, a Managing Director of Welkin.
About Welkin
Welkin is a China-focused mid-market growth equity investment firm with a distinguished family heritage and strong entrepreneurial roots. Founded in 2009, Welkin invests in niche-leading, growth stage companies in China on behalf of global institutional investors and the firm’s employees. Welkin deploys its local resources, industry knowledge, and operating expertise, to drive impactful value creation and help companies achieve their full growth potential. For more information, please visit www.welkincapital.com
About East Asia Sports International Limited
EAS, founded in 1993 by Ding Shaowei and his brothers, is a leading mass-market, fast-retail sportswear retailer in China with over 1,500 stores nationwide, strategically located in third and fourth-tier cities across China. EAS markets its products under the “Qiuzhi” brand, which targets the urban low-income demographic. For additional information, please visit EAS’s website at www.qiuzhi.com
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