Fashion rental subscription service Le Tote has formed a partnership with Clement Tang to enter the Chinese market.
Tang is an 18-year veteran at Belle International, the largest shoe retailer in China. He will serve as chief executive officer of Le Tote China and the company will be headquartered in Shenzhen, China, with satellite offices in Beijing and Hong Kong.
Tang has made a $30 million personal investment in Le Tote. Of the $30 million, $10 million has been earmarked for the U.S. business and $20 million for Le Tote China, which is slated to begin operations this spring. The initiative will give Le Tote the distinction of being the first U.S. subscription service to enter the Chinese market, which is touted as the largest e-commerce market in the world.
“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,” said Rakesh Tondon, Le Tote cofounder and ceo. “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 service in China will be the same as in the U.S. — the ability to rent unlimited apparel and accessories for a flat monthly fee — and the business model will follow a similar format. Before opening to the general public, the service will admit a group of 3,000 “founding members” who will serve as the eyes and ears for the company on how to best cater to the Chinese consumer.