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- Liz Claiborne Inc. Unveils Major New Distribution Strategy for the Liz Claiborne Brand Franchise
Liz Claiborne Inc. Unveils Major New Distribution Strategy for the Liz Claiborne Brand Franchise
- By Maxamillion Blick
- Published 10/10/2009
- Fashion News Articles
- Unrated
Maxamillion Blick
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The Liz&Co. and Concepts by Claiborne brands, launched at JCPenney in 2007, have consistently been among JCPenney's strongest exclusive brand performers, reflecting the enormous appeal of the Liz Claiborne brand to the JCPenney customer. This milestone, strategic agreement substantially expands this highly successful partnership by launching full lifestyle collections under both the
With this agreement, all
Additional highlights of the JCPenney agreement include:
-- The agreement has a term of up to 10 years beginning inAugust 2010 . At the end of year five, after certain consents have been obtained, JCPenney will have the option to acquire the licensed trademarks and other Liz Claiborne brands for use in the U.S. andPuerto Rico . JCPenney will also have the option to take ownership of the marks in the same territory at the end of year 10.
--Liz Claiborne Inc. will receive design service fees and royalties as a percent of sales plus gross profit sharing with guaranteed minimums.
-- The merchandise will be sourced by JCPenney's well established sourcing
organization to leverage a long history of supplier relationships and
leading edge, proprietary technology and processes.
-- The launch ofLiz Claiborne and Claiborne will include a full range of apparel for women and men, as well as accessories, shoes and home.
--Liz Claiborne Inc. retains the rights to market and distribute the LizClaiborne, Liz & Co. , Claiborne and Concepts by Claiborne labels outside of the U.S.
Commenting on the JCPenney strategic partnership,
Liz Claiborne New York, Designed by
Additional highlights of the QVC deal include:
-- QVC has the rights to use the Liz Claiborne New York brand withIsaac Mizrahi as creative director on any apparel, accessories, or home categories in their U.S. and international markets.
-- Liz Claiborne New York product at QVC will have higher-end styling and
quality.
-- The multi-year agreement has renewal rights.
--Liz Claiborne Inc. receives royalty on net sales.
Regarding the move to QVC, Mr. McComb said: "In order for us to fully capitalize on the Liz Claiborne New York brand's vast equity with consumers, we needed to find a more productive distribution strategy. Given QVC's rich, brand-enhancing selling environment and its extremely consumer-centric culture, as well as its recent announcement to support the launch of the comprehensive lifestyle collection IsaacMizrahiLive!(TM), QVC is ideal for Liz Claiborne New York. I am excited to think that
Commenting on this agreement, QVC's president and CEO
About
About JCPenney
JCPenney is one of America's leading retailers, operating 1,109 department stores throughout
About QVC
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