Kate Spade, the US-based women’s fashion brand owned by Fifth & Pacific, is ready to steer its own course in Asia.
The company has regained control of its business operations from former partner, Globalluxe, in Hong Kong, Macau, Taiwan, Malaysia, Singapore, Indonesia, and Thailand, reports InsideRetail.Asia.
Similar to other luxury brands who have taken back ownership in Asia, taking 100 percent ownership of its business in Hong Kong and Southeast Asia allows the brand “full visibility and control” of the brand experience in this high-profile luxury market.
The company will pay Globalluxe approximately $34 million to take control of its business shares, which had included sixteen stores and ten concessions throughout these seven Asian countries.
Kate Spade will directly own and operate the business in Hong Kong, Macau, and Taiwan. In order to manage its partnerships and brand operations in the region, Kate Spade has established a regional headquarters in Hong Kong.
At less than 25 percent of its global retail footprint, the brand believes there is huge opportunities for its global business, and especially with its younger, more causal Kate Spade Saturday brand.
The company expects its international retail footprint for the Kate Spade New York, Jack Spade, and Kate Spade Saturday brands will together “outpace its growth domestically and achieve over 35 percent penetration by 2016.”
photo credit: joanne teh