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Mickey Drexler, the CEO of J. Crew, doesn’t really like partners: “I don’t want to visit a store,” he noted, “where I have to discuss what I like or don’t like about my store.” Therefore, for J. Crew’s expansion into China, the clothing retailer is going it alone.
In the past year, J. Crew’s online site expanded its international shipping capacities to more than 100 countries. Through that experiment, it quickly realized that Asian markets were huge buyers. Therefore, instead of partnering with a local firm—as it did during a failed expansion attempt into Japan—J. Crew is establishing independent stores, as well as separate retail spaces in department stores.
Both Hong Kong and mainland China appear attractive to U.S. and European retailers, especially as China’s middle class grew exponentially in the 2000s. Thus many luxury companies have already made headway among newly wealthy Chinese consumers. However, recent reports suggest that the growth of this luxury market in China is slowing down, leading consumers to seek out more midrange options, including Zara and H&M.
Although most of the retailers that appear successful in China appear European—from Gucci to H&M—several U.S. retailers also have achieved a substantial status. For example, the Gap is also enjoying growth there—and Mickey Drexler was the CEO of the Gap before he joined J. Crew. J. Crew also found its international marketing director from another retailer: Coach, perhaps the most successful foreign fashion brand in China.
Overall, the retailer’s position is one marked by notable confidence. It continues to expand “organically” in the United States, so its international growth is not driven by desperation. And as Drexler calmly notes, “If we didn’t succeed in Hong Kong, life goes on. We’ll figure out alternatives.”
Discussion Questions
- What makes China such an attractive market for various fashion retailers?
- Is Mickey Drexler’s confidence justified or misplaced?
Source: How Do You Say Crewneck in Mandarin? J. Crew Expands into China
Grewal Levy Marketing News 
China is certainly an attractive market for J. Crew because of their growing middle class. The article states that European companies like Gucci have traditionally been the companies that succeed in the Chinese market, but J. Crew is not a direct competitor of Gucci, J. Crew is much more financially appealing for most people. One advantage J. Crew has is that their clothing is fashionable yet affordable and can appeal to China’s growing middle class but can also sell a few outfits to each of the wealthy Chinese people that have previously been buying the most high end clothing available i.e. Gucci. J. Crew can use past experience to make a splash in the Chinese market from a “failed expansion” in Japan- a similar Asian market.
I think this is a great idea for the company. J.Crew is an extremely credible and popular company world wide. I think that expanding indiependent stores in Asian countries is a smarrt business ideas. J. Crew is not an outrageously priced store. It can be bought my middle class people and it still withstands the classy and look that it has in America. The store has been a great success in the United States having over 333 retail stores in the country. Overall i think it a good decision to make an independent store in the Chinese market.