Clothing retailers see the potential of China's growing market. Companies such as Jones Apparel Group, Espirit and VF Corp., owner of Lee jeans, will be opening stores in different parts of China. Most brands are positioning products as premium, even though they have a different image elsewhere. "It's hugely expensive," for China says VF President and Chief Operating Officer Eric Siseman. If consumers don't respond to high prices, "we could always come down...it's hard to go up if you start in the middle." Additionally, apparel brands find it tough to compete with low cost Chinese produced goods. China has one of the fastest growing middle class populations around the world. Retailers are trying to find a way to tap into it.
Dodes, Rachel and Fong, Mei. "Some Apparel Makers Now See China as a Customer." Wall Street Journal. Page B1. Friday, June 23, 2006.
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