By: Retail Asia
A number of global apparel brands have decided to pull out from the China market in a bid to scale down their operations and secure cash flow to survive the pandemic pressures, according to a report from Fung Business Intelligence.
In June, two global fashion brands, namely Superdry from the UK and Iconix from the US, announced their withdrawal from the China market. Earlier, Old Navy and Esprit closed all of their China stores in March and May respectively, whilst Guess and earth music&ecology announced their China exit plans in June.
The pandemic has made survival in the China market even more difficult for foreign brands incapable of adapting to the local market, the report stated. In Superdry’s case, the brand entered the China market through setting up a joint venture company in 2015, but has been stuck in adapting to the local market over the past four years.
In FY 2019, Superdry recorded losses of up to $4.69m (£3.7m) in China, whilst the outbreak disrupted the brand’s distribution, supply chain, design and marketing plans.
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