Brooks Brothers announces joint venture to accelerate growth in Greater China
Brooks Brothers Group has teamed up with Walton Brown Group, a subsidiary of The Lane Crawford Joyce Group, in a joint venture that will drive Brooks Brothers' market expansion in Greater China
The 50/50 joint venture, which has an initial term of 10 years commencing January 2016, will take over the management of Brooks Brothers' existing retail network of 90 stores in Greater China and drive plans to open more than 10 points of sale in the first two years across key cities in China, Hong Kong, Macau, and Taiwan.
In addition to freestanding stores, the joint venture partnership will include investment 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 addition to Brooks Brothers' ready-to-wear menswear and accessories collections, the product offerings will include a women's collection by fashion designer Zac Posen who has been appointed as creative director for women's wear. His first women's collection for Brooks Brothers will debut in Spring/Summer 2016 and will be available worldwide.
Claudio Del Vecchio, chairman and chief executive of Brooks Brothers, said: "We are thrilled to be partnering with Walton Brown on this exciting joint venture which enables us to develop long-term growth strategies across multiple online and offline distribution channels especially in China, one of our most important growth markets for our global business. We are confident in China's growth prospects in the premium sector for the coming years and this is the optimal time for us to position Brooks Brothers for long term sustainable growth."
Following the formation of the joint venture, Brooks Brothers and Walton Brown will establish a corporate office and showroom in Hong Kong in early 2016.
Brooks Brothers operates more than 460 stores worldwide including over 130 retail stores in the Asia Pacific region.
Thomson Cheng, president of Walton Brown, said, "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."
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