iFashion is backed by VCs and corporate investors that include Fatfish Internet Group, Sovereign Capital, Rimu Group, multi-brand fashion group Fashion DK Group and angel investors Seow Kiat Wang and Tan Chow Boon. The acquisition of NOSE sees iFashion expanding in the Malaysian market.
NOSE specialises in retailing female shoes and handbag and maintains 10 outlet stores in major shopping malls across Malaysia. 2008 saw it expand to the Middle East, where it has franchised seven stories in in the United Arab Emirates (UAE), Saudi Arabia, and Qatar.
NOSE has recently expanded online retailing activities through strategic partnerships with various online marketplaces in Southeast Asia. This acquisition will see it work with the iFashion Group’s Internet retailing platform, leveraging on its expertise to expand its internet presence, receiving support to scale and accelerating its journey to reach economies of scale, in addition to accelerating its online sales.
In an interaction with Singapore Business Review in May 2016, Jeneen Goh, managing director of iFashion Group, had shared that it wanted to aggregate businesses via M&As, given the fragmented and highly saturated nature of the online retailers competing in the fashion e-commerce space. It is aiming to build Asia’s largest online fashion hub through the acquisitor of smaller fashion e-commerce stores between three and five years old.
Goh had said, “Our corporate strategy is to aggregate businesses via mergers and acquisitions in its sectors of interest to create synergy among the businesses. We are looking to achieve rapid growth through values of collaboration, co-existence and synergistic resource-sharing.”
“The online fashion and lifestyle space is fragmented and overcrowded with small businesses. Many brands are operated by small teams with limited resources and most brand owners do not know how to scale their business beyond a certain size,” she’d added.
Commenting on the development, Goh said, “It is important that our acquisitions are in line with our business goals. The acquisition of NOSE is no exception, it fortifies the synergy between the brands under our umbrella and it also ensures that we are able to move forward as a united team working towards being Southeast Asia’s leading fashion and lifestyle group.”