Joint Venture Significantly Increases Liz Claiborne Inc.'s Presence in Mainland China
The joint venture, which will operate under the trade name kate spade china, is for an initial 10 year period and will commence on or around June 1, 2011. This new venture will build on kate spade new york's existing footprint of two freestanding stores and three shop-in-shops, with plans to grow to nearly 300 points of distribution by 2020.
William l. McComb, CEO of Liz Claiborne Inc., said, "International markets, and mainland China in particular, are key areas of focus for all of our direct brands and potentially huge drivers of growth going forward. We have chosen the E.Land Group as a partner because of their significant and far-reaching infrastructure of branch offices throughout mainland China -- and for their savvy treatment and management of brands. They are outstanding merchants and operators."
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."
Jae hung Ahn of E.Land commented, "We are very excited to be partnering with kate spade new york on kate spade china. We believe that the synergy between kate spade new york's brand aesthetic and E.Land's expertise in China will be very successful in penetrating the luxury market in this region."
Until 2014, Globalluxe will continue driving kate spade new york's business in Southeast Asia, including the territories of Hong Kong, Taiwan, Macau and Singapore, where business remains very strong. kate spade new york first entered greater China and Southeast Asia in 2001 through a distribution agreement with Globalluxe Limited.
David Ting, CEO of Globalluxe, said, "We are very proud of the kate spade business we have helped to develop in China and Southeast Asia. We look forward to continuing to work closely with kate spade new york to ensure a smooth transition for the mainland China market and to further strengthen the performance of the kate spade brand in greater China and Southeast Asia."
Over the past 16 years, kate spade new york has developed a very significant presence in Asia, now operating 70 full price locations and 8 outlets. The joint venture deal for mainland china and the reacquisition of the mainland China and Southeast Asia businesses, are critical next steps in realizing the brand's aggressive international growth plans. This is kate spade new york's second joint venture in Asia -- the first was in Japan and commenced operations in December 2009.
About kate spade new york
In 1993, Kate Spade designed the utilitarian bag she'd been craving for years but couldn't find anywhere and so began a revolution in the accessories market. Simple silhouettes with clever details and crisp palettes soon established a visual shorthand for the brand that's recognizable the world over. In 2007, Kate Spade turned the reins over to design powerhouse Liz Claiborne Inc. and Deborah Lloyd, formerly of Banana Republic and Burberry, took the helm as creative director and co-president with an aim to broadening the line while honoring Kate's rich history. Today you'll find the brand on the arms of women everywhere -- with 36 retail shops, a thriving e-commerce business, 89 locations in Asia, a new flagship in Brazil and distribution in more than 400 doors worldwide.
About E.Land
Established in 1980, E.Land reported $6.2 billion worth in sales in 2010 and has established itself as a leader in the Korean fashion industry. Currently the E.Land portfolio includes 61 fashion brands and 500 designers, spanning 40 points of sale. In China, E.Land has seen great success, and has been lauded as the most successful Korean fashion company in the region. In its Chinese business, E.Land counts 23 premium fashion brands and 4,000 points of sale, generating over 50% percent increases in sales year over year, and reported $1 billion in sales in 2010. To add, in 2010 E.Land paid approximately $170 million in taxes to the Chinese government. As a result, amongst the brands operating out of Shanghai, E.Land has been ranked as the second most tax abiding global company (#1 being the Coca Cola Company) and therefore has established itself as a respectable and transparent company in China.
About Liz Claiborne Inc.
Liz Claiborne Inc. (the "Company") designs and markets a global portfolio of retail-based premium brands including Juicy Couture, kate spade, Lucky Brand and Mexx. The Company also has a refined group of department store-based brands with strong consumer franchises including the Monet family of brands, Kensie, Kensiegirl, Mac & Jac, and the licensed DKNY® Jeans and DKNY® Active brands. The Liz Claiborne and Claiborne brands are available at JCPenney, the Liz Claiborne New York brand designed by Isaac Mizrahi is available at QVC, and the Dana Buchman and Axcess brands are sold at Kohl's. Visit www.lizclaiborneinc.com for more information.
