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Wrangler launch in China delayed

The Coronavirus (COVID-19) may upset the rollout of the Wrangler brand in China. Wrangler was to be launched in China in the first quarter of 2020. The brand run by Kontoor Brands accounts for 58 per cent of Kontoor’s sales. Kontoor saw an opportunity to expand Wrangler to China and had been planning a major product rollout for the country, but that has all been thrown into doubt. That means Kontoor may have to rely upon the other two planks of its growth strategy, which are brand extensions, such as getting into tops and outerwear, and new distribution channels, particularly direct to consumer. The wholesale channel, which includes sales to department stores and retailers, is still Kontoor’s biggest source of revenue, representing 85 per cent of total sales.

The US represents 73 per cent of Kontoor’s total sales, but China is seen as a big growth market, because jeans from US companies are still considered prestigious and carry a premium. For the Wrangler rollout, Kontoor had partnered with a large digital company for the effort. Last summer it had hooked up with e-commerce giant Alibaba and was using its research and development arm, Tmall Innovation Center, to design products for local customers.

 
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