Correct: Japan’s Plus teams up with China’s Deli in office furniture market
TOKYO, NNA – Japanese office supply manufacturer Plus Corp. has entered the Chinese office furniture market through a joint venture with local stationery firm Deli Group Co., the Tokyo-based company said Tuesday.
The joint venture, Deli-Plus Office Technology Co., headquartered in Hangzhou in the coastal province of Zhejiang will produce and sell office furniture under the “deli-PLUS” brand to meet the growing demand for high-quality products from local companies.
Deli-Plus will also ship its products to markets overseas, including Japan. The joint venture has set a goal of achieving 20 billion yen ($189 million) in annual sales by the end of 2023, Plus spokeswoman Junko Fujiwara told NNA on Tuesday.
Plus set up the joint venture with Deli on May 14, 2019 with a capital of 200 million yuan ($29 million) in preparation to make inroads into the Chinese market. Deli has a 60 percent stake in the joint venture, with Plus holding the remaining 40 percent. Deli-Plus unveiled its office furniture brand, “deli-PLUS,” on June 30, 2020, the Japanese maker said in a statement released Tuesday.
In the joint venture, Plus is responsible for the manufacturing, development, and quality control of products. Concurrently, Deli will market the joint venture’s products, striving to enhance deli-PLUS’ brand power, according to the statement.
Deli-Plus’ main manufacturing plant, which is under construction in a 150,000-square-meter lot in Hangzhou, is scheduled to go into full operation in February 2022. Steel cabinets and other office furniture will be assembled at the facility.
Deli-Plus has established shops doubling as showrooms in Hangzhou, Suzhou, Jiangsu Province, Beijing, and Guangzhou, Guangdong Province starting July 2020. The joint venture will also sell its products through e-commerce platforms.
“The Chinese office furniture market is worth approximately 3 trillion yen, about 10 times as the Japanese market. The joint venture will take advantage of Plus’ production capability and Deli’s sales capacity to meet potential demand,” the spokeswoman said.
The impact of the global pandemic of COVID-19 on the office furniture market is limited, she added.
Plus has manufactured office supplies such as electronic blackboard and whiteboards at its factory in Shantou, Guangdong Province, which was set up in 2000. Products produced also include stationery, including files, labels, and correction tapes at its Shanghai plant established in 2005.
Deli was founded in 1988, is headquartered in Ningbo, Zhejiang Province, and employs some 14,000 workers.