Distributor Furniweb Holdings has unveiled its venture into the luxury and lifestyle fashion business with Philipp Plein Group, a luxury good conglomerate based in Lugano, Switzerland. A letter of intent was signed with both Philipp Plein International AG (PPI) and Plein Sport AG (PS AG) under the Philipp Plein Group, to record the parties’ intention to start a business collaboration.
The agreement is stated to cover markets in Singapore, Malaysia and Thailand initially. According to Furniweb, the association with a famous global apparel brand will bring in “new elements and dimension” to the company’s profile.
This can potentially broaden its customer based for its core business in textile manufacturing, and provide opportunities for growth. The agreement is expected to roll out no later than the third quarter of 2018. Following the collaboration, the company will be appointed as the authorised dealer, promotion and sale of luxury and lifestyle fashion apparel carried under both brands’ trade names.
In addition, Furniweb would be involved and authorised for the business planning and strategy for progressive implementation of the business collaboration. This includes operational decisions such as setting up of mono-brand boutique and stores for distribution, pricing and marketing plan among others, in the mentioned markets.
The agreement also grants the Furniweb a non-exclusive right to the promotion and sale of the products. The company entitled to the rights of first refusal to open a store in case PPI or PS AG wishes to grant the distribution right a third party.