The Roberto Cavalli Group and the UCCAL Group: Joint venture in China

Staff International for “Just Cavalli” and Dressing for “Class Roberto Cavalli” contextually reached exclusive distribution agreements with UCCAL

The agreements foresee the opening of over 100 stores in the next 5 years

The Roberto Cavalli Group and the UCCAL Group: Joint venture in ChinaMilan, May10, 2011 – The Roberto Cavalli Group, one of the most prestigious international names in fashion, signed a frame joint venture agreement with the UCCAL Group, a company with headquarters in Shanghai,
which boasts more than ten-years experience in the development of the Chinese retail market with the management of over 700 stores.
Contextually to the signing of the frame joint venture agreement between the Cavalli Group and UCCAL, the main terms and conditions of exclusive distribution agreements for the retail and wholesale channels have been defined with, respectively, Staff International, which holds the license for the “Just Cavalli” brand and with Dressing, which holds the license for the “Class Roberto Cavalli” brand.
All agreements will last 5 years, renewable for another 5, starting from the spring/summer 2012 collections and include the ready-to-wear, shoes and leather goods of the “Roberto Cavalli”, “Just Cavalli” and “Class Roberto Cavalli” collections.
In particular, the first openings of “Roberto Cavalli” mono-brand boutiques are expected in Beijing and Shanghai between the end of 2011 and the beginning of 2012. All mono-brand “Roberto Cavalli” boutiques will be directly managed by the new joint venture – named Roberto Cavalli China Ltd – which will be owned 75% by the Roberto Cavalli Group and 25% by the partner UCCAL. The objective of the joint venture is to open and manage 5 “Roberto Cavalli” stores over the next five years and to promote the image of the brand by organizing events, fashion shows, advertising and editorial initiatives in China, which is such an important market, undergoing strong development.
Over the next five years, 50 new mono-brand stores with the name “Just Cavalli” will be opened, starting from the end of 2011. These will be in addition to the 10 “Just Cavalli” mono-brand boutiques already existing in China. These boutiques will be directly managed by the local partner UCCAL through the exclusive distribution agreement with Staff International. The main objective is to further increase the presence of Just Cavalli “contemporary” line – whose re-launch by Staff International will start with the spring/summer 2012 collections – not only in the major metropolitan areas, like Beijing and Shanghai, but also in all those large Chinese cities defined as “Tier 2” and “Tier 3”.
Furthermore, 30 new mono brand stores with the “Class Roberto Cavalli” name will be opened over the next 5 years, starting from the end of 2011. These will be in addition to the 10 “Class Roberto Cavalli” monobrand stores already existing in China. Also these stores will be directly managed by the local partner UCCAL
through the exclusive distribution agreement with Dressing. The objective will be to guarantee a presence of this line in the “soft look – bridge” segment not only in the main metropolitan areas in China but, like for “Just Cavalli”, also in all major cities defined as “Tier 2” and “Tier 3”.
The choice to assign the whole “Roberto Cavalli” portfolio line to a single partner, expert and professional, maintaining the direct control over the activities tied to the promotion of the image, is part of a strategic choice agreed upon by the Roberto Cavalli Group, UCCAL, Staff International and Dressing to guarantee the best approach to a market where one needs to proceed with caution in order to be able to exploit all medium and
long-term opportunities.
“I am extremely happy to be able to announce this important agreement that will allow millions of Chinese clients, who already know my creations, to finally be able to buy our products through an adequate “Roberto Cavalli”, “Just Cavalli” and “Class Roberto Cavalli” mono brand boutique network,” said Roberto Cavalli, Chairman of the Roberto Cavalli Group. “The collaboration with UCCAL, a young company, efficient and dynamic headed by its founder James Chen, who I appreciate for his concreteness and seriousness, will surely be a success in a market that is so prominent, fascinating and in which every day I want to dive more into in order to understand its secretes and culture.”
“Over the past one and half year of negotiations I got to know the Roberto Cavalli Group and its partners, Staff International and Dressing: I am sure that, thanks to the strength of the brand and our knowledge of the Chinese market, we will have great satisfactions,” said James Chen, Chairman and Founder of UCCAL.
“The Roberto Cavalli brand, with its different lines is exactly what is needed in a market like this, where an appropriate segmentation of the offer is the key to success.”

Group Roberto Cavalli
Launched in the early 1970’s, the Roberto Cavalli group is one of the most renowned and respected “Made in Italy” brands due to constant innovation and creativity in its evolution. The Roberto Cavalli group showcases its women’s collection, “Roberto Cavalli Women”, on the runways of Milan, along with “Roberto Cavalli Man” and the more contemporary collection, “Just Cavalli”. All of these collections are complemented by a wide range of products manufactured by licenses which include clothing, accessories, footwear, eyewear, watches, perfumes, underwear and swimwear. The Roberto Cavalli brand also extends itself with the signature line, “Class Roberto Cavalli”, and a younger collection for teens, “Roberto Cavalli Angels & Devils”. The Roberto Cavalli Group is distributed in Italy and worldwide through an extensive network of 135 flagship stores including 71 “Roberto Cavalli” boutiques (of which 26 owned), 38 “Just Cavalli” boutiques , and 26
“Class Roberyo Cavalli” boutiques. In 2010, the Roberto Cavalli Group celebrated its 40th Anniversary. At the beginning of 2011, the Roberto Cavalli Group opened a subsidiary in Hong Kong in order to manage all the operations in Asia and China.

STAFF INTERNATIONAL
Staff International, with its own 30 year history, perfectly embodies the concept of “glocal”: a ready-to-wear company which thanks to its production skills has turned “Made in Italy” into its main strength. Staff International’s extraordinary ability in tailoring, cutting edge techniques, treatment of fabrics, and established manufacturing processes, combined with accurate sales and marketing strategies, allows the company capable of providing cross-experimental denim styles to luxury couture. Staff International’s expertise and know-how meets consumers who are increasingly demanding and looking for an exclusive product across the globe. Company’s current licensed brand portfolio includes Maison Martin Margiela, Dsquared2, Viktor & Rolf, Vivienne Westwood and Marc Jacobs.

DRESSING
Established in the early ’80s by the will of the spouses Rinaldo Lorenzon and Roberta Scarpa to create a business reality realising own concept of woman total look. Already in the early ’90s the company began to enter into important industrial partnerships with prestigious brands of international fame. Today Dressing has a trademark, Roberta Scarpa and many licences that include Class Roberto Cavalli, Scervino Street and the French Plein Sud and Plein Sud Jeanius. Dressing is present worldwide with over 2000 stores, many of these located in the most prestigious fashion locations.

UCCAL
Established in 1999 to distribute G2000 and U2 fashion brands in China, UCCAL subsequently sold to the distribution of 130 points of sales of these two brands to the brand owner. In 2002 UCCAL started its current activities, specializing in the retail sector on the Chinese market both for Luxury / High End Brands, including St. John and Isaia plus Mid Market Brands, including Nike 360 Sportwear, Nike Sport Performance, Nike Golf, Kuhle and Jockey Underwear. UCCAL to date manages over 700 retail sale points for a turnover of over US$150 million and with an annual growth of 20%/25%. It employs some 1,500 people and has its headquarters in Shanghai with another 4 regional offices and distribution centers that guarantee the merchandise supply and the management of the stores.