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Wrangler expansion in China halted by coronavirus outbreak

09
Mar '20
Pic: Wrangler
Pic: Wrangler
The novel coronavirus outbreak has put on hold Wrangler’s big plan this year to start selling the 73-year-old denim brand in China. Scott Baxter, chief executive officer of Kontoor Brands, which owns Wrangler and Lee, recently told a news agency that the launch is now scheduled for the fall, though its earlier target for launch there was February or March.

Lee is already China’s biggest denim brand. The uncertainty surrounding tariffs had complicated issues last year.

Kontoor, which reported quarterly earnings recently , did not include the potential impact from the outbreak in its full-year outlook, but the company said in a press release that it is ‘carefully monitoring’ the situation.

China now accounts for about 7 per cent of the retailer’s annual global revenue. Wrangler’s planned rollout included events for consumers and shows to highlight the brand. That is not happening now, Baxter said, but Kontoor is still working to build brand awareness through digital and social media advertising.

Some positive signs have been witnessed in the KOntoor Brands’ China stores recently. Over the last week, half of them have reopened.

Fibre2Fashion News Desk (DS)


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