LVMH takes 10% stake in China's Trendy

L Capital Asia, a private equity fund backed by LVMH Moët Hennessy-Louis Vuitton (MC.Euronext), invested around US$200 million for a 10% stake in Chinese luxury firm Trendy International Group, The Wall Street Journal reported. Trendy owns around 300 retail stores and hundreds of franchises across China. Huang Hanji, a managing director at L Capital Asia, said that the parent firm would develop Trendy’s image across the company’s brand portfolio, though he declined to comment on specifics. Trendy’s largest brand, Orchirly, targets young professional women. The LVMH investment may renew focus on domestic Chinese clothing brands. China’s clothing and apparel sales were up 15% in 2011, and may account for 30% of the global fashion market’s growth over the next five years, according to Boston Consulting Group. Last year Chinese PE firm IDG Capital Partners invested US$30 million in menswear designer Beijing Eve Fashion.