This post is sponsored by Kate Spade.
This week, Liz Claiborne-owned Kate Spade New York announced that it has signed an agreement with the E.Land Group to form Kate Spade China — a new joint venture in China’s mainland.
China is emerging as one of the world’s largest consumers of luxury goods — right now they’re second only to the U.S. — and the joint venture is intended to solidify Kate Spade’s Chinese presence and future growth potential.
In addition, Kate Spade New York is reacquiring its existing Kate Spade New York business in mainland China by 2011, and its Southeast Asia business by 2014. Both were previously owned by Globalluxe Limited.
Craig Leavitt, CEO of Kate Spade New York, said of the joint venture:
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.
And Bill McComb, CEO of Liz Claiborne Inc., noted:
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.