Business Intelligence on Retailing, Franchising, and Consumerism in China

PVH Apparel Group Enters China

PVH Apparel Group has announced that its Izod brand has entered the Chinese market and plans to open 3,000 stores in the country in the next five years.

PVH is one of the largest apparel group in America with total revenue of over USD2 billion in 2009. Its brands include Izod, Van Heusen, Bass, Jimlar, Calvin Klein, and Tommy Hilfiger, of which Calvin Klein and Tommy Hilfiger entered the Chinese market via proxies a few years ago.

While his visit to Beijing for the preparation of Izod's entry into China, PVH Group's executive vice president for marketing Michael L. Kelly told local media that Izod products are high-end sports and casual clothing that are affordable for common people. These products are positioned as cost-effective goods with quality fabrics.

PVH has invited a Chinese partner, Shandong-based Dishang Group, to co-operate the Izod brand. Specialized in apparel import and export, as well as manufacturing, Dishang Group has 15,000 employees, total assets of CNY2 billion, and annual sales of over CNY5 billion.

According to Kelly, Izod's positioning determines that it will be a brand with large sales. Therefore, it needs a powerful partner with very good local production capacity. Dishang's strong production and capital strength will ensure the success of Izod in China.

Izod opened its first batch of stores in Beijing, Shanghai, and Shandong in November 2010 and the company plans to launch 3,000 stores and specialty counters in first- and second-tier Chinese cities in the next five years.

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