Kate Spade New York, a subsidiary of Liz Claiborne Inc., has formed a joint venture in Mainland China with the E.Land Group.
In addition, Kate Spade New York has signed an agreement to reacquire from Globalluxe Ltd. its existing Kate Spade New York business in Mainland China this year, and its businesses in Southeast Asia in 2014.
The joint venture, which will be known as Kate Spade China, is for an initial 10-year period and will begin around June 1. The venture will start with two freestanding stores and three shop-in-shops, with plans to grow to nearly 300 points of distribution by 2020.
Until 2014, Globalluxe will continue spearheading Kate Spade New York’s business in Southeast Asia, including the territories of Hong Kong, Taiwan, Macau and Singapore, where business has been strong. Spade first entered Greater China and Southeast Asia in 2001 through a distribution deal with Globalluxe Ltd.
Kate Spade New York has developed a very significant presence in Asia, now operating 70 full-price locations and eight outlets. Spade already has a joint venture in Japan, which began in December, 2009.
William L. McComb, chief executive officer of Claiborne, 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.”
E.Land, established in 1980, had sales of $6.2 billion in 2010.