Fashion Space (China) Company Limited

Industry: 

Mobile Internet & Consumer Service

Region/Country: 

China

Invested: 

Jun 2012

Status: 

• Current

Beginning in 2008, Mashington professionals have worked with Fashion Space management to transform the company from a traditional, family-owned fashion consulting business into an international company.

About Fashion Space and the Transaction
Mashington made an initial investment in Fashion Space in June 2012. Mashington made follow-on investments with convertible notes in 2013, demonstrating our confidence in the company.

Founded in 2008 and headquartered in Shenzhen, in Guangdong Province, Fashion Space is one of the largest fashion consulting companies in China. Under the proprietary brands of Fashion Space and 8-Color, the company designs and markets fashion related service and goods, including SasS, across the country. As of December 31, 2009, Fashion Space had more than 6,500 business clients throughout China.

Key Value Creation Metrics

• Worked with management to smoothly transform Fashion Space from a traditional, family-owned business into an international company.
• Introduced various business development and brand building opportunities to Fashion Space, including generating positive media coverage and creating brand awareness in the international financial community.
• Achieved outstanding financial performance and robust growth: Between 2012 and 2013, revenues and profits grew by 200% and 232%, respectively.
• Helped Fashion Space execute a successful upgrade in February 2013 to raise capital to fund its further growth, resulting in a 60% increase in sales and a 34% increase in employee headcount.

Transforming Fashion Space into an International Company
Mashington professionals worked closely with Fashion Space’s management to transition the company from a traditional, family-owned business into a professional company. As part of this transformation, Fashion Space enhanced its corporate governance processes and improved its management team. Mashington helped Fashion Space assess its internal management needs and identify qualified candidates. Mashington worked with the company to develop and implement a sophisticated corporate restructuring plan, enabling Fashion Space to grow professionally.

With Mashington’s assistance, Fashion Space targeted new business development opportunities and enhanced its corporate brand among Chinese consumers and the global financial community. For example, in December 2012, Beauty China magazine published an in-depth article, “Fashion Space Forward,” about how the company had developed and targeted second-tier cities for a new round of growth.

Successful Growth
With Mashington’s support, Fashion Space successfully executed a growth strategy in October 2012. In challenging financial market conditions, Fashion Space’s valuation was tripled in 3 months. Mashington advised Fashion Space during the fund raising process and worked with the company to select banking and legal representatives, to coordinate the various parties engaged in the process, and to resolve legal and financial issues that arose during the process. Fashion Space has used the proceeds to enhance its distribution network, expand its facilities, support sales and marketing initiatives, and target acquisitions.

Fashion Space’s Performance
Since Mashington’s investment in 2012, Fashion Space has achieved outstanding financial performance and robust growth. From 2012 to 2013, revenues and profits grew by 460% and 92%, respectively. In addition, the company’s profit margins have steadily expanded: Gross profit margin has increased from 30.5% in 2011 to 38.1% in 2012. Fashion Space has also increased the number of customers by 360% and the number of employees rose from 5 in 2012 to 15 in 2013.