Company Becomes The First US Subscription Service To Launch In China
SAN FRANCISCO--(BUSINESS WIRE)--Le Tote, the largest fashion rental subscription service, today announced plans for international expansion with the launch of Le Tote China. A groundbreaking initiative, Le Tote is the first US subscription service to enter the highly competitive Chinese market. Currently in beta, Le Tote China will open to the general public Spring 2018.
Le Tote China is launching in partnership with seasoned retailer and executive, Clement Tang. An 18-year veteran at Belle International, the largest shoe retailer in China, Tang most recently served as Executive Director and President. On the heels of Belle’s recent $6.8 billion acquisition, Tang partnered with Le Tote for his next venture, serving as CEO of Le Tote China. He further illustrated his deep belief in the Le Tote model by personally investing in the US business and leading the investment for Le Tote China.
“To be the first US subscription service in China, the largest ecommerce market in the world, is an opportunity that is both humbling and exhilarating,” said Rakesh Tondon, Le Tote Co-Founder and CEO. “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. With the launch of Le Tote China, we’re now able to reach a target demographic of over 400M women – and we’re still in the early days of the country’s middle-class boom. The sky is truly the limit.”
Le Tote China will provide the same service as its US counterpart: the ability to rent unlimited clothing and accessories for a flat monthly fee. Le Tote leveraged their domestic business model, proprietary technology and in-house talent to transpose their service for the international market. Combined with the exceptional talent found in the booming technology hub of Shenzhen, Le Tote China was able to grow from concept to beta in just three months. The unique blend of proven US infrastructure paired with the experience, passion and local expertise of Le Tote China’s executive team aims to be a winning combination, driving success where many US brands have struggled.
Before opening to the general public, Le Tote China is admitting a select group of Founding Members to the service. A total of 3,000 women will be admitted, with entry expected to close by end of month. Once closed, women will be placed on a waitlist for future entry to the service. The Founding Members will not only have premiere access, but will be instrumental in helping Le Tote navigate the consumer landscape and shaping the service to best cater to the Chinese customer.
“China is a nuanced market with its own cultural norms, standards and expectations. We can’t simply cut and paste the Le Tote experience,” said Clement Tang, Le Tote China CEO. “We’re eager to work with the Founding Members to deeply understand the market and deliver a service that truly resonates. We know that the average per capita income in China is growing 10% year over year and 60% of disposable income is spent on fashion. The Chinese consumer is primed and ready for the future of retail, but has not yet had access to a solution like ours.”
Le Tote China is headquartered in Shenzhen with satellite offices in Beijing and Hong Kong. The distribution center is in Dongguan, with plans to expand to Beijing and Shanghai as well.
For additional information on Le Tote, please visit letote.com or download the press kit here.
About Le Tote
Le Tote is a fashion subscription service that allows members to borrow clothing and accessories for a flat monthly fee. Each shipment is curated using Le Tote’s proprietary algorithm. Members can choose to swap items ahead of delivery and keep them as long as they like. Once they are done enjoying their tote, they simply return it to receive another. Members also have an option to purchase items for 20-50 percent off retail. Le Tote partners with more than 150 brands including French Connection, Vince Camuto, BCBGeneration, Sanctuary, Kate Spade, Rebecca Minkoff, Cole Haan, Nike and more. Founded in 2012 by Brett Northart and Rakesh Tondon, the Y Combinator backed company has raised venture funding from Andreessen Horowitz, Google Ventures, Azure Capital Partners, Lerer Hippeau Ventures, Simon Venture Group, Sway Ventures, Epic Ventures, Arsenal Venture Partners, Funders Club and others. For additional information, please visit www.LeTote.com or download the iPhone app.
Director of Marketing Communications