Totowa, NJ, Sept. 16, 2013 (GLOBE NEWSWIRE) -- Premiere Opportunities Group, Inc ("OTCQB: PPBL") www.premiereopportunites.com thru its Joint Venture with Cabe Studio www.cabestudio.com has received an order worth approximately $900,000 from Hyundai Department Stores based in Seoul, Korea.
Chris Giordano Premiere's Chairman stated " This marks another milestone for our goal of bringing Western Fashion into SE Asia and Mainland China by first establishing our lines of clothing in Seoul, Korea which is the epicenter and harbinger for all that is fashion throughout all of Asia. Once our lines become established in Korea we will have tremendous impetus to move our clothing lines into Mainland China. Korea establishes fashion trends for the entire SE Asian region and once are lines are established in Korea the opportunity to move the lines into Mainland China becomes tremendous.
Our goal is establish six to ten joint ventures over the next twelve months with "Western Brand" clothing design manufacturers that do not have the necessary relationships to establish their brand and line in Southeast Asia and Mainland China. Our distribution partners will give each joint ventire the chance of establishing a solid footprint in the region. Most importantly is the in the case of the success of each joint venture it is our anticipation that each line would generate several million a year in revenue with net margins of at least ten percent pre tax which is substantial for a small public company such as ours.
With our approach to the joint venture model we have in place, we eradicate most of the risk that goes along with establishing a line of clothing for the first time. Our approach is distinct since we initially take samples of the US based designer's clothing
and send them to the people who have tremendous insight and influence within the "buying group" for the department stores in Seoul, Korea. After receiving their feedback it establishes for us in advance whether or not the line could be successful in the department store environment in Korea. This symbiotic relationship we have avoids the typical method of going into the market blind.
These relationships that we have established are with both Lotte Department Stores http://www.lotte.co.kr/eng/02_bussiness/circulation.jsp and Hyundai Department Stores http://www.ehyundai.com/newPortal/eng/index.jsp which have tremendous presence in the higher end category for clothing and overwhelming foot traffic in all of their locations which gives each joint venture we create over there a tremendous opportunity to succeed. .
In addition to mitigating the acceptance risk factor we also have a unique revenue sharing relationship with both Lotte and Hyundai Department stores which allows us to exist in the two most prestigious department store environments in all of Southeast Asia and China virtually "rent free" since we do not pay for the space we harbour.
With the successful sell thru of the Cabe Studio fall lines of Clothing and Cashmere Sweaters we expect that 2014 will give us the opportunity to increase the amount of department stores Cabe will be distributed in and we are very optimistic that we could have a presence into Mainland China which would exponentially increase sales for the Cabe Studio line.
We are in discussions with several different US based design manufacturers at this point and expect to sign agreements with several of them in the coming weeks. Our risk adverse strategy of establishing brand thru low risk joint ventures is a model that is unique since instead of acquiring companies for cash and other forms of debt and or equity components, we establish control of the joint venture first, establish the brand overseas and have an option to acquire the company in the joint venture down the road at a set price when and if it makes sense. This allows us at this critical stage of our operational growth to avoid unnecessary overhead and dilution to our shareholders.
We are extremely encouraged by the early success we are having with this strategy and once more fully established we expect to hire a CEO with an excellent track record in running public apparel companies to take this venue to the next level.
We feel this counterinuitive model of establishing western brand overseas where there is a group of 500 million middle class and affluent people with a tremendous appetite for western style clothing is the right model as opposed to trying to establish the brands here in the USA where the industry has considerably more challenges from high rents to cluttered buying channels. We look forward to expanding this business model over the coming years and feel that the implementation of such will serve us extremely well in the coming years.