Published By : 21 Oct 2015 | Published By : QYRESEARCH
Brooks Brothers, the U.S-based retailer is getting involved with Walton Brown Group in a joint venture in the pursuit to accelerate growth in Greater China.
The joint venture that the American retailer is entering into will be on a 50/50 partnership with Walton Brown. The latter is a subsidiary of the retail and brand management group in Asia, The Lane Crawford Joyce Group, and the joint venture comes into effect from January that has an initial term of ten years.
The American retailer operates more than 460 stores across the world, commented that the joint venture is slated to leverage the global appeal of the company and also the strengths and capabilities of Walton Brown for the purpose of enhancing strategic brand management for retail sales in Greater China.
As per terms of the joint venture, 90 stores of Brooks Brothers will be managed and will also initiate a strategic expansion plan in order to open more than ten points of sale outlets in the first two years itself across major cities in China, Macau, Taiwan, and Hong King.
On top of freestanding stores, the joint venture also includes investments for multi-channel distribution platforms for the purpose of wholesale, travel retail, outlets, and e-commerce channels to boost brand presence and propel business growth in this region.
As stated by Brooks Brothers Chairman, the company is confident about growth prospects in China in the premium sector in the near future and this is slated to be the most optimal time for Brooks Brothers to position themselves for long term sustainable growth.
The chairman further added that following the institution of the joint venture, Walton Brown and Brooks Brothers will establish a showroom and a corporate office in Hong Kong in early 2016.
As stated by the President of Walton Brown, with a strong foundation the brand has immense potential to cater to the new generation of sophisticated Chinese consumers.