Tokyo Lifestyle Co., Ltd. Announces Joint Venture with Crossing Limited to Expand into Trading Card Retail Business
Tokyo Lifestyle (Nasdaq: TKLF) has announced a 5-year cooperation agreement with Crossing to establish a joint venture named CROSSING CARDS CO., focused on trading card retail business. The JV involves a total investment of JPY 10 million (USD 0.66 million), with Tokyo Lifestyle holding 30% equity and Crossing 70%. Profit distribution will be split 50-50 between shareholder dividends and development funds. The partnership aims to capitalize on the growing trading card market, which is projected to reach USD 1.57 billion by 2032, with the Asia-Pacific region holding the largest market share.
Tokyo Lifestyle (Nasdaq: TKLF) ha annunciato un accordo di cooperazione di 5 anni con Crossing per costituire una joint venture chiamata CROSSING CARDS CO., focalizzata sul business del commercio di carte collezionabili. La JV prevede un investimento totale di 10 milioni di JPY (circa 0,66 milioni di USD), con Tokyo Lifestyle che detiene il 30% delle azioni e Crossing il 70%. La distribuzione dei profitti sarà divisa equamente tra dividendi per gli azionisti e fondi per lo sviluppo. L'obiettivo della partnership è quello di sfruttare il crescente mercato delle carte collezionabili, che si prevede raggiungerà 1,57 miliardi di USD entro il 2032, con la regione Asia-Pacifico che detiene la più grande quota di mercato.
Tokyo Lifestyle (Nasdaq: TKLF) ha anunciado un acuerdo de cooperación de 5 años con Crossing para establecer una empresa conjunta llamada CROSSING CARDS CO., centrada en el negocio del comercio de cartas coleccionables. La JV implica una inversión total de 10 millones de JPY (aproximadamente 0,66 millones de USD), con Tokyo Lifestyle poseyendo el 30% de las acciones y Crossing el 70%. La distribución de las ganancias se dividirá 50-50 entre dividendos para los accionistas y fondos de desarrollo. El objetivo de la asociación es capitalizar el creciente mercado de cartas coleccionables, que se proyecta alcance los 1,57 mil millones de USD para 2032, siendo la región de Asia-Pacífico la que tiene la mayor participación de mercado.
도쿄 라이프스타일 (Nasdaq: TKLF)은 크로싱과 5년 협력 계약을 체결하고 카드 거래 사업에 집중할 CROSSING CARDS CO.라는 합작 회사를 설립한다고 발표했습니다. JV는 총 1천만 JPY (약 66만 USD)의 투자를 포함하며, 도쿄 라이프스타일이 30%의 지분을, 크로싱이 70%를 보유합니다. 이익 분배는 주주 배당금과 개발 기금 간에 50-50으로 나뉩니다. 이 파트너십의 목표는 2032년까지 15억 7천만 USD에 이를 것으로 예상되는 성장하는 카드 거래 시장을 활용하는 것입니다. 아시아-태평양 지역이 가장 큰 시장 점유율을 기록하고 있습니다.
Tokyo Lifestyle (Nasdaq: TKLF) a annoncé un accord de coopération de 5 ans avec Crossing pour établir une coentreprise nommée CROSSING CARDS CO., axée sur le commerce de cartes à collectionner. La coentreprise implique un investissement total de 10 millions de JPY (environ 0,66 million de USD), Tokyo Lifestyle détenant 30 % des parts et Crossing 70 %. La distribution des bénéfices sera répartie équitablement entre les dividendes des actionnaires et les fonds de développement. L'objectif de ce partenariat est de capitaliser sur le marché croissant des cartes à collectionner, qui devrait atteindre 1,57 milliard de USD d'ici 2032, la région Asie-Pacifique détenant la plus grande part de marché.
Tokyo Lifestyle (Nasdaq: TKLF) hat eine 5-jährige Kooperationsvereinbarung mit Crossing angekündigt, um ein Joint Venture namens CROSSING CARDS CO. zu gründen, das sich auf den Einzelhandel mit Sammelkarten konzentriert. Das JV umfasst eine Gesamtsumme von 10 Millionen JPY (ca. 0,66 Millionen USD) als Investition, wobei Tokyo Lifestyle 30% der Anteile und Crossing 70% hält. Die Gewinnverteilung erfolgt hälftig zwischen Aktionärsdividenden und Entwicklungsfonds. Ziel der Partnerschaft ist es, vom wachsenden Sammelkartenmarkt zu profitieren, der bis 2032 auf 1,57 Milliarden USD anwachsen soll, wobei die Asien-Pazifik-Region den größten Marktanteil hält.
- Strategic expansion into the growing trading card market, projected to reach USD 1.57 billion by 2032
- Partnership provides access to Crossing 's established online sales channels and live-streaming e-commerce platform
- Risk-mitigated entry into new market segment through joint venture structure
- Minority stake position (30%) in the joint venture limits control over operations
- Significant initial investment of approximately USD 0.66 million required
Insights
This joint venture represents a strategic diversification move with minimal capital risk. The initial investment of
The profit-sharing structure is well-designed, with
Given the projected
The trading card market presents significant growth opportunities, particularly in the Asia-Pacific region where Tokyo Lifestyle has established operations. The target demographic of 20-30 year olds aligns perfectly with the rising disposable income trends in the region. The partnership with Crossing is strategically sound, leveraging their expertise in live-streaming distribution - a important channel for modern collectibles retail.
The timing is opportune as the market transitions from traditional sports cards to diverse categories including entertainment and gaming cards. The projected growth from
TOKYO, Nov. 04, 2024 (GLOBE NEWSWIRE) -- Tokyo Lifestyle Co., Ltd. (formerly known as Yoshitsu Co., Ltd, “Tokyo Lifestyle” or the “Company”) (Nasdaq: TKLF), a retailer and wholesaler of Japanese beauty and health products, sundry products, luxury products, electronic products, as well as other products in Hong Kong, Japan, North America and the United Kingdom, today announced that the Company, through its Hong Kong subsidiary Tokyo Lifestyle Limited (“Tokyo Lifestyle HK”), has entered into a 5-year cooperation agreement (the “Agreement”) on October 17, 2024, with Crossing Limited, a collectible card retailer and live-streaming distributor, to establish a joint venture (the “JV”) named CROSSING CARDS CO., LTD to develop the trading card retail business. This partnership represents a significant and ambitious step forward for Tokyo Lifestyle, expanding into the trading cards market as part of its strategic diversification efforts.
Pursuant to the Agreement, Tokyo Lifestyle HK and Crossing Limited agree to invest a total of JPY 10 million (approximately USD 0.66 million) in the JV. The JV is designed to engage in retail and wholesale card operations, with Tokyo Lifestyle HK holding a
A trading card is essentially a small card typically made of cardboard or thick paper, featuring an image of a specific individual, location, or object, along with a brief description and additional text. There is a wide variety of card types. Modern trading cards can also include pieces of game-worn memorabilia, signatures, and even DNA hair samples from their subjects. While trading cards are traditionally associated with sports—particularly baseball cards, which are especially notable—there are other categories. Cards dealing with different themes, such as Pokémon, are often regarded as a separate class known as non-sports trading cards. These can feature cartoons, comic characters, TV shows, and movie stills. The Asia-Pacific region is expected to account for the largest share of the trading card market due to the growth of the population aged twenty to thirty and increasing disposable income. North America is projected to maintain its position as the second-largest market, driven by rising spending among millennials and increased investment from prominent market players, which is anticipated to propel market growth. According to Business Research Insights, the global trading card market was valued at USD 0.96 billion in 2023 and is projected to grow from USD 1 billion in 2024 to USD 1.57 billion by 2032, reflecting a compound annual growth rate (CAGR) of
Mr. Mei Kanayama, Principal Executive Officer of Tokyo Lifestyle, commented, “We are thrilled to partner with Crossing Limited in our strategic cooperation in the trading card retail business. The JV combines the unique strengths of both companies, creating a powerful synergy in the trading card business. For Tokyo Lifestyle, this collaboration opens new market opportunities through Crossing Limited’s robust online sales channels, particularly in the trading card retail space. We are confident that Crossing Limited’s expertise and extensive resources in live-streaming e-commerce and online shops will enhance our brand recognition and expand our customer base. By establishing this specialized joint venture, we can explore new opportunities together, mitigate operational risks, and bolster our competitiveness in the rapidly evolving social media-driven markets.”
About Tokyo Lifestyle Co., Ltd.
Headquartered in Tokyo, Japan, Tokyo Lifestyle Co., Ltd. (formerly known as Yoshitsu Co., Ltd) is a retailer and wholesaler of Japanese beauty and health products, sundry products, luxury products, electronic products, and other products in Hong Kong, Japan, North America, and the United Kingdom. The Company offers various beauty products (including cosmetics, skincare, fragrance, and body care products), health products (including over-the-counter drugs, nutritional supplements, and medical supplies and devices), sundry products (including home goods), and other products (including food and alcoholic beverages). The Company currently sells its products through directly-operated physical stores, through online stores, and to franchise stores and wholesale customers. For more information, please visit the Company's website at https://www.ystbek.co.jp/irlibrary/.
Forward-Looking Statements
Certain statements in this press release are forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to," or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and in its other filings with the U.S. Securities and Exchange Commission.
For more information, please contact:
Tokyo Lifestyle Co., Ltd.
Investor Relations Department
Email: ir@ystbek.co.jp
Ascent Investor Relations LLC
Tina Xiao
President
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
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