Brooks Brothers, Walton Brown form joint venture in China
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Business
American clothing brand Brooks Brothers entered China 12 years ago. Now, the US' oldest retailer plans to expand its operations in Greater China and has thus formed a joint venture with the Walton Brown Group, a subsidiary of The Lane Crawford Joyce Group, Asia's premier fashion retail and brand management group.
In a press release, Walton Brown announced that the 50/50 joint venture would "take over the management of Brooks Brothers' existing retail network of 90 stores" in Greater China and would "activate a strategic expansion plan to open more than 10 points of sale in the first two years across key cities in China, Hong Kong, Macau and Taiwan". The partnership has an initial term of 10 years and will commence from January 2016.
Apart from the retail network, the joint venture will invest in a "multi-channel distribution platform providing wholesale, outlets, travel retail and e-commerce channels to bolster brand presence and fuel business growth in the region". In early 2016, it will also establish a corporate office and show room in Hong Kong.
The US clothier banks on the success of the Brooks Brothers' ready-to-wear menswear and accessories collections but is putting effort into its women's collection and accessories lines as well: the company appointed designer Zac Posen in 2014 as creative director for women's wear whose first women's collection Spring/Summer 2016 just debuted at fashion week and will be available worldwide from Spring 2016.
"In the 12 years Brooks Brothers has been operating in China, the brand has built a strong following of customers who subscribe to its unique heritage and rich history of design and quality craftsmanship. With the foundation in place, we believe the brand has enormous potential with the new generation of sophisticated and prosperous consumers in China and with the launch of the online business in 2016 we will be able to significantly increase reach with this consumer segment", said Thomson Cheng, president of Walton Brown.
Brooks Brothers currently operates more than 460 stores worldwide. The Chinese stores make up more than two thirds of the 130 outlets located in Asia/Pacific.
Image: Brooks Brothers Womenswear Spring/Summer 2016