Fanatics, the U.S.-based online retailer of licensed sports merchandise, has announced that it is expanding into China via a joint venture with Hillhouse Capital Group, a private equity firm that is also a major shareholder in a major Chinese sporting goods retailer, Topsports. The 50-50 joint venture will be based in Shanghai. Although the financial terms of the partnership were not disclosed, CNBC reported that Fanatics expects the “venture alone to be over a $1 billion piece of business in China,” adding to its estimated annual turnover of around $3 billion. Fanatics’ recent deals with various European football teams will help it to become relevant in the highly digital Chinese market, and to win over Chinese teams and leagues. Headquartered in Jacksonville, Florida, Fanatics operates online stores and sells products for more than 300 teams, brands and leagues. In addition to China, Fanatics’ presence outside the U.S. also includes the U.K., Spain, Japan, Germany, Thailand, Australia and India. The company generated 10 percent of revenues from outside the U.S., but its international presence started only around 2017. In 2020, Fanatics raised $350 million in a Series E funding round, which brought its valuation to $6.2 billion in August.