LOS ANGELES and CHENNAI, India, June 6, 2012 /PRNewswire/ -- LuxeYard, Inc., (OTCQB: LUXR), the fast-growing boutique luxury flash sale site, today announced plans to expand to India under an exclusive licensing deal with veteran technology and retail entrepreneur Sashi Chimala.
Under the terms of the agreement, Mr. Chimala will establish LuxeYard India - http://india.luxeyard.com - with a dedicated team to build out product acquisition, marketing and merchandising operations to manage the site. Working closely with the U.S. team, LuxeYard India will leverage the company's existing e-commerce platform and operations infrastructure, as well as its extensive knowledge of selling fashion, home furnishings and decor via the flash sale model.
"This exciting deal provides access to one of the fastest growing e-commerce markets in the world, where rising consumer spending power and demand for luxury goods will combine to help us achieve our revenue goals and business objectives," said Braden Richter, CEO, LuxeYard, Inc. "Under Sashi's leadership and with his history of successful entrepreneurial ventures, we have great confidence that our partnership will be successful."
According to the Internet and Mobile Association of India, non-travel e-commerce, which is 30% of the total industry now, is estimated to grow 10 fold to approximately $6 billion by 2015. Some estimates suggest that the total e-commerce market in India may grow to $125 to $260 billion in the next 12 years.
The new venture expands upon LuxeYard's growing international presence, and provides increased revenue potential through reciprocal access to the products offered on both the U.S. and Indian sites. LuxeYard India will make its products available to the company's global distribution network, and products that LuxeYard sources in the U.S. and from throughout the world will be made available to the Indian market.
"The e-commerce market is in a state of rapid growth and the flash sale model is just now beginning to emerge in India," said Chimala. "Our partnership is structured to immediately leverage our respective products, people and technology and will allow LuxeYard to enter the market quickly. Over time it will also allow us to realize even more efficiencies and cost savings."
A highly regarded entrepreneur in India, Chimala is recognized for his ability to create consumer brands and develop innovative marketing and promotion programs, as evidenced by three successful technology startups in the U.S. and two consumer retail startups in India. He was part of the founding teams of Covansys and Indigo Technologies, PayPod.com, a highly scalable ad server and ad network solution targeted towards ethnic online consumers, and Knibble.com, one of the largest aggregators of online casual games. As the founder of Qwiky's Coffee and creator of JavaGreen, Mr. Chimala has regularly been named a pioneer of organized retail in India.
India joins Australia and New Zealand as recent new international territories for LuxeYard, further bolstering the company's global presence.
LuxeYard will maintain ownership of all developed intellectual property related to the venture.
LuxeYard is a members-only flash sale site for luxury home furnishings, decor and fashion that offers access to unique products sourced by a seasoned team of buyers at a fraction of retail prices. LuxeYard is the pioneer of Concierge Buying, which gives members the power to determine what items will be sold on the site, and Group Buy which allows them to lower the price by sharing sale items with friends. Along with its veteran retail, e-commerce and digital marketing management team, LuxeYard partners with celebrity Trendsetters and design and fashion industry insiders to deliver a curated buying experience from a unique point of view to its members. To join the LuxeYard community, visit www.LuxeYard.com.
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This press release contains forward-looking statements about our expansion plans into India, which involve risks and uncertainties, and actual results could differ materially from those discussed. Factors that could cause or contribute to such differences include, but are not limited to, the factors included under the headings "Risk Factors" and "Cautionary Note Regarding Forward Looking Statements" on Form 8-K, filed with the Securities and Exchange Commission on November 15, 2011, a copy of which may be obtained by visiting the SEC's web site at www.sec.gov. LuxeYard's actual results could differ materially from those predicted or implied and reported results should not be considered as an indication of future performance.
You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. We undertake no obligation to update publicly any forward-looking statements for any reason after the date of this press release to conform these statements to actual results or to changes in our expectations.
Footprint Global Communications, New Delhi
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SOURCE LuxeYard, Inc.