Cheak Acquisition: Key Details, Impact, and What Comes Next

Love Bonito's acquisition of Cheak marks a significant step in the fashion industry, particularly in the Asia Pacific region. By integrating Cheak's activewear expertise, Love Bonito aims to expand its market presence and cater to the growing demand for high-quality, affordable activewear designed for Asian women. This strategic move underscores Love Bonito's commitment to building a holistic female ecosystem.

What Is Cheak?

Founded in Singapore, Cheak specializes in fashion-forward activewear, offering a range of products including sports bras, leggings, shorts, skirts, tees, tanks, dresses, and accessories. The brand stands out with its luxuriously soft fabrics, designs tailored for an Asian fit, and inclusive sizing from XS to XXL. Cheak's unique blend of fashion and function ensures that their activewear is suitable for both workouts and casual wear, making it a versatile choice for modern women.

Who Acquired Cheak?

Love Bonito is Southeast Asia’s largest vertically integrated, omni-channel womenswear brand. The company focuses on celebrating and uplifting Asian women through thoughtfully designed clothing. Key products include workwear, party dresses, maternity outfits, and activewear. With a strong presence in countries like Singapore, Malaysia, and Indonesia, and expanding into the Philippines and the United States, Love Bonito has grown to over 200 employees and ships to over 20 countries, showcasing its significant market influence and reach.

When Was Cheak Acquired?

Love Bonito acquired Cheak on October 16, 2022. This acquisition came at a time when the activewear market was experiencing significant growth, particularly in the Asia Pacific region. The move aligns with industry trends where fashion brands are diversifying their offerings to include activewear and wellness products. This strategic acquisition followed Love Bonito's Series C funding round, which raised $50 million, indicating a period of expansion and investment for the company.

Why Was Cheak Acquired?

• Market Expansion: Love Bonito's acquisition of Cheak is a strategic move to bolster its presence in the activewear market. This acquisition aligns with Love Bonito's broader ambition to build a holistic female ecosystem with a house of brands curated for Asian women. The Series C funding round, which raised $50 million, will support efforts to expand into international markets, including Hong Kong, Japan, the Philippines, and the US.
• Technology Integration: While the articles do not explicitly mention technology integration, Love Bonito is described as a "tech-enabled" womenswear brand. The proprietary fabrics used by Cheak, such as BaseCore® and BaseFlex®, represent technological advancements in product design, enhancing performance and comfort for various physical activities.
• Competitive Advantage: The acquisition of Cheak strengthens Love Bonito's position in the market by diversifying its product offerings into the fast-growing activewear segment. The focus on high-quality, affordable activewear designed specifically for the Asian fit, along with the use of proprietary fabrics, provides a unique selling proposition. This move also supports Love Bonito's vision of creating a comprehensive lifestyle brand for women, further differentiating it from competitors.

Acquisition Terms

• Acquisition Price: The terms of the acquisition were not disclosed.
• Payment Method: The article does not specify the payment method used for the acquisition.
• Key Conditions or Agreements:
  • Butter will be rebranded as ‘Cheak’.
  • Love Bonito aims to build a holistic female ecosystem with a house of brands curated for Asian women.
  • Love Bonito has also acquired a minority stake in healthcare startup Moom Health.
  • The acquisition aligns with Love Bonito's long-term vision to support the essential facets of women's needs within Asia.

Impact on Cheak

The acquisition of Cheak by Love Bonito has led to significant changes in operations and management. The activewear brand, formerly known as Butter, has been rebranded as Cheak and integrated into Love Bonito's broader product offerings. This move aligns with Love Bonito's strategy to build a holistic female ecosystem, expanding beyond traditional fashion into activewear and healthcare. The co-founders of Butter, Olivia Yiong and Tiffany Chng, have expressed excitement about the acquisition, highlighting the opportunity to bring their brand to an international stage.

In terms of product offerings, the acquisition has resulted in the launch of a new activewear line under the Cheak brand. This collection features 12 styles available in seven sizes and 13 colors, utilizing proprietary fabrics like BaseCore® and BaseFlex® to cater to various physical activities. Customer reactions have been overwhelmingly positive, with testimonials praising the collection's refreshing colors, flattering designs, and comfort. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly, ensuring a smooth and successful transition.