Fashion rental subscription service Le Tote is expanding internationally, debuting its brand in China in spring 2018. It will be the first U.S. subscription service to enter the Chinese market, which is projected to represent 44% of global luxury sales by 2025.
Le Tote China will launch in partnership with retail executive Clement Tang, an 18-year veteran at Belle International, the largest shoe retailer in China. Tang has personally invested in Le Tote. In the midst of Belle’s recent $6.8 billion acquisition, Tang will serve as CEO of Le Tote China.
“To be the first US subscription service in China, the largest e-Commerce market in the world, is an opportunity that is both humbling and exhilarating,” said Rakesh Tondon, Co-Founder and CEO of Le Tote in a statement. “Regulatory restrictions are particularly tough and our partnership with Clement allows us to enter a market that so few venture-backed companies have been able to penetrate. With the launch of Le Tote China, we’re now able to reach a target demographic of over 400 million women — and we’re still in the early days of the country’s middle-class boom. The sky is truly the limit.”
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Le Tote China will offer the same services as its U.S. counterpart, including the ability to rent unlimited clothing and accessories for a flat monthly fee. Prior to becoming available to the general public, Le Tote China will select a group of Founding Members (a total of 3,000 women) to help Le Tote navigate the consumer landscape and shape the service to best cater to the Chinese shopper.
“China is a nuanced market with its own cultural norms, standards and expectations,” said Tang in a statement. “We can’t simply cut and paste the Le Tote experience. We’re eager to work with the Founding Members to deeply understand the market and deliver a service that truly resonates. We know that the average per capita income in China is growing 10% year over year, and that 60% of disposable income is spent on fashion. The Chinese consumer is primed and ready for the future of retail, but has not yet had access to a solution like ours.”
Currently, approximately 5.7 million U.S. consumers are subscription box shoppers.
Le Tote China is headquartered in Shenzhen with satellite offices in Beijing and Hong Kong. The distribution center is in Dongguan; the company plans to expand to Beijing and Shanghai.
