Brand Business and Retail Store Development with the Shanshan Group

First StompStamp store in China (Shanghai)

In February 2009, ITOCHU entered a capital and business tie-up with the Shanshan Group. Working together, we are advancing a range of activities that extend throughout ITOCHU operations, including the production of cathode materials for lithium-ion batteries and the operation of outlet malls. In textiles, in September 2010 we introduced women’s wear under the French brand ELLE and began developing stores in major cities in China, including Shanghai and Guangzhou, targeting fashion-oriented women between the age of 25 and 35. As of the end of March 2011, there were a total of 34 stores. We also moved ahead with StompStamp high-end children’s wear stores, which originated in Japan. The first StompStamp store in China opened in Shanghai in December 2010. Targeting fashion-conscious families, these operations represent our entry into a new format, a shop that offers one-stop access to European and North American brands. Going forward, we will continue to accelerate brand development in China with leading local partners.

Business Ties Between ITOCHU and the Shanshan Group

Developments Leading to the ITOCHU-Shanshan Group Alliance

1993	ITOCHU and the Shanshan Group began an OEM apparel production consignment business shipping apparel from China to Japan. The first apparel products included men's shirts, knitwear and cut-and-sewn garments. Thereafter, the apparel range was expanded to include men's slacks, while expanding business transactions centered on shipments to Japan, together with shipments to Europe and North America.
Around 2000	ITOCHU focuses on the Shanshan Group's sales capabilities in the Chinese market, and explores new business models in the branding business, one of ITOCHU’s strengths, with the Shanshan Group as a partner in China.
November 2001	Together with Italy's Forall Confezioni S.P.A., the three companies established JIC GARMENTS (NINGBO) LTD., their first joint venture in the brand-related business, and began marketing the Marco Azali brand in famous Chinese department stores, a business that continues to this day.
2004	Two joint ventures were established consecutively: LE COQ SPORTIF (NINGBO) CO., LTD. (a three-way joint venture with ITOCHU Corporation and DESCENTE LTD.) and RENOMA (NINGBO) APPAREL CO., LTD.
January 2009	ITOCHU reaches an agreement to acquire stock of Shanshan Group Co., Ltd. (Purchased in February 2009)
From 2009	Currently, apparel product transactions are centered on Western suits and cut-and-sewn garments. With the new business alliance, ITOCHU will allocate additional business resources, primarily brands, to the Shanshan Group, as it works to enter new segments of the Chinese market in partnership with the Shanshan Group. In addition, ITOCHU and Shanshan will aim to mutually enhance their corporate value in their lithium ion battery related business.