Outdoor lifestyle creator Snow Peak allies with Korean apparel firm for expansion
SEOUL, NNA – Japanese outdoor merchandise maker Snow Peak Inc. has formed a capital alliance with a South Korean firm to grow local sales as part of its ambitious oversea expansion.
Snow Peak acquired a 6.6 percent stake in Virtualtek Corp. for about 3 billion won ($2.58 million) through private share placement on Dec. 27, it said in a statement on Monday.
Snow Peak, known for its premium apparel and gear for hiking, trekking and camping, will develop sporting apparel and goods with Vitrualtek. While the latter is mainly engaged in paper recycling, it has an apparel subsidiary, Devgru. Snow Peak will receive trademark licensing fees from the local partner under the agreement.
The two groups plan to open a shop in a Lotte Department store in Pyeongchon, Anyang city on Feb. 20 and subsequently increase outlets to 70 within this year in major department stores such as Galleria, Shinsegae and Hyundai in Seoul, the statement said.
Snow Peak intends to shore up its business in the country with the new alliance while growing its own sales at the same time via Snow Peak Korea Inc., its sales subsidiary established in 2008, according to the statement.
Outside Japan, the Tokyo-listed company runs sales operations in Europe, North America and Taiwan. The brand has a cult following among mountaineers and trekkers seeking trendy designs with technical features.