Global Sources Ltd. has entered into an agreement to acquire an 80 percent interest in the China (Shenzhen) International Brand Clothing & Accessories Fair (SZIC), one of the largest fashion shows in Asia, for a consideration of up to approximately US$17.3 million.
SZIC is held annually in Shenzhen, one of the major cities in garment designing and manufacturing in China. Started in 2001, the show has continually grown and developed each year. The 2011 event hosted about 300 exhibitors, 4,000 booths, and 31,000 professional visitors. The 2012 show is scheduled to be held from July 8 to 10.
Global Sources' executive chairman, Merle A. Hinrichs, said: "The apparel industry in China is moving from pure manufacturing to design and innovation, driving Chinese brands to become more well-known and prestigious, ultimately accelerating China's domestic demand. The 12th Five-Year Plan of China states its intent to put resources and focus into fostering the domestic fashion and textile industry. According to the plan, the goal is for China to have between three and five internationally recognized brands and 100 nationally renowned brands.
"With SZIC's dominant presence in the burgeoning fashion industry combined with Global Sources' established global presence and strong network in China, the partnership positions both of us to take advantage of this emerging opportunity. We are excited about teaming up with the experienced professionals of the SZIC team," said Hinrichs.