China Dongxiang has agreed to sell the rights to the Kappa brand in Japan for $13 million. BasicNet plans to give a major boost to brand’s development in the country, where Kappa generated sales of $30 million in 2019 through Phenix and its licensees. China Dongxiang will continue to focus on Mainland China and Macao, where it will continue as the Kappa brand’s owner. China Dongxiang bought the rights to the brand in 2006. It obtained the rights to the brand for Japan as well through its acquisition in 2008 of Phenix, the Japanese sportswear producer, which had bought those rights in 1994. BasicNet says that Kappa has been trading in Japan since the early 1980s, reaching a position of high market standing over time before entering “a prolonged period of stagnation.”