Danish furniture chain BoConcept has entered into a strategic partnership with the Chinese furniture and franchise chain, Guangzhou Kinetic Home Furnishings in order to further accelerate its store expansion process in China. BoConcept announced through a stock exchange announcement that the parties have agreed that Kinetic may exercise a call option for minority equity share in BoConcept’s Chinese subsidiary in 2016, provided that specific growth and expansion targets are met.
Kinetic is a leading Chinese furniture retailer and manufacturer owned and managed by Mr Liu Yong Kang, who is also the president of the Chinese Furniture Brand Federation and an executive committee member of the China Furniture Association, two of the principal trade associations for the furniture industry in China. With his solid experience in production, distribution, branding and franchisee sourcing, Mr Kang and Kinetic have built up a large and successful business addressing the mid-level price range segment with Kinetic’s own collections, which are distributed by more than 400 Chinese franchise stores.
Mr Kang, founder and president of Kinetic, says, ‘BoConcept and Kinetic have the same DNA. Both enterprises were founded by industrious families, are franchise-based and hold shared values. BoConcept is already a highly respected international brand in China, addressing a rapidly growing segment with substantial purchasing power. We are looking forward to and are proud to be working closely together with BoConcept’s team to make our success even greater by increasing brand awareness and the number of stores substantially.