[Asia Economy Reporter Jang Hyowon] East Asia Holdings signaled a green light for a new joint venture by completing an additional paid-in capital payment to Grand Empire International Group Limited (hereinafter “Grand Empire”) on the 21st.
East Asia Holdings plans to promote a joint venture by establishing a brand licensing center within a large-scale footwear industry town (中?鞋都) spanning 200,000㎡ in China through Grand Empire. The joint venture is scheduled to be fully launched in the second half of this year, aiming to directly and indirectly drive the growth of East Asia Holdings’ sales.
East Asia Holdings and Grand Empire plan to create more active commercial activities within the footwear industry town through the brand licensing center. After attracting well-known brands and IP holders, they will connect producers and sellers, and secure influencers so that resident companies can receive live commerce services within the footwear industry town.
Incubating services for startups, e-commerce services, and supply chain consulting services for resident companies will also be provided. The revenue model of this joint venture is to generate income from brand usage fees, sales commissions, live commerce commissions, and rental fees from resident companies.
The brand licensing center will handle all offline processes such as product manufacturing and distribution. This is possible because the footwear industry town is equipped with functions such as a wholesale market, brand management center, supply chain management center, live commerce center, showroom, e-commerce center, and education center. Online operations can connect the market and customers through the shopping function of the WeChat mini-program owned by the footwear industry town.
Grand Empire invested in the company holding the operating rights of the footwear industry town located in Jinjiang City, Fujian Province, China. The footwear industry town houses brands, IPs, producers, sellers, and influencers. Products from resident companies in the footwear industry town will be linked to major Chinese shopping malls such as Taobao, Tmall, and Douyin through a supply chain system to be developed, enabling efficient distribution and management. The footwear industry town plans to promote various offline events in the future, including regular and irregular brand presentations, supply chain investment attraction events, and overseas direct purchase e-commerce exhibitions.
On the 13th, the footwear industry town held an “Overseas Direct Purchase E-commerce Wholesale Exhibition.” At the event, e-commerce supply chain members agreed to form partnerships. By securing a strategic partnership with Jinjiang Agricultural Bank, residents of the footwear industry town can receive financial services up to 200 million yuan (approximately 39 billion KRW) from Jinjiang Agricultural Bank. Overseas expansion-related events were also held. More than 80 sellers participated in this exhibition, connecting with over 120 buyers.
An East Asia Holdings official stated, “Through the infrastructure of the footwear industry town, we have secured business negotiation capabilities with famous brands and IPs, and as negotiations to attract some excellent brands are entering the final stages, business expansion through this will gain more momentum. Our goal is to build a new business structure that aligns with market trends and continue unstoppable growth,” adding.
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