Sales may have slowed for Abercrombie & Fitch Co in the US, but the retailer is upbeat about China where the market opportunity for “causal luxury” could be huge. Over the next ten years, A&F will launch 100 new stores in China under its A&F and Hollister brands. “China will represent the biggest market potential for our brands. We are entering with strong brand awareness, ” Abercrombie’s Senior Vice-President of Marketing Craig Brommers tells China Daily. In April, the company opened a new flagship in a four story glass building on West Nanjing Road in Shanghai. Brommers is optimistic about China because he believes that A&F is creating a new segment in the market called casual luxury, based on clothing style and price. A&F operates in the affordable luxury market, which is expected to accelerate as more Chinese become middle class. “Chinese consumers seem to be looking for something a little beyond just blinged-out luxury logos, and we think the laid-back sophistication that A&F offers is timed right,” Brommers said. Early signs are promising. According to Brommers, “We do know that the seven Hollister stores on the Chinese mainland are offering a very encouraging start. We have seen sales increase at 35 percent for the Hollister stores and we expect similar strong results for A&F in near future. It’s a not a cookie-cutter format. We have to take the time to find a right location for our brand.” The brand will launch a local e-commerce site later this year.

Read more at: http://red-luxury.com/brands-retail/abercrombie-to-launch-100-new-stores-in-china-22753 | Red Luxury

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s