Fashion brand Kate Spade New York, a subsidiary of Liz Claiborne Inc., is realigning its China business.
Kate Spade announced a joint venture in Mainland China with the E.Land Group to solidify the brand’s presence and future growth potential in the Chinese market.
The joint venture will operate under the trade name Kate Spade China for an initial 10 year period beginning June 1, 2011. This new venture will build on Kate Spade New York’s existing business of two freestanding stores and three shop-in-shops, to nearly 300 points of distribution by 2020.
As part of realignment, Kate Spade will also reacquire its existing Kate Spade New York business in Mainland China from Globalluxe Ltd. this year, and its businesses in Southeast Asia in 2014.
Craig Leavitt, CEO of Kate Spade New York said, “We believe our proven success in the Asian region has created a strong foundation for tremendous growth in mainland China. This joint venture with E.Land is an integral step in a strategy to create a meaningful presence for Kate Spade New York in this critical market. Kate Spade China, together with the planned reacquisition of our mainland China and Southeast Asia businesses, as well as our joint venture in Japan, will solidify our long term commitment to brand ownership in Asia.”
image credit: kate spade new york