American Eagle Outfitters to Exit China Market

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American Eagle Outfitters has officially closed its Tmall store, prompting speculation that the brand is exiting the Chinese market.

operated by Tmall has been retired. This exit does not impact the [Hong Kong] operations, which are an important part of our [Asian Pacific region] growth strategy.”

AEO entered the Asian market with the American Eagle brand. It opened a store in Hong Kong in 2011. In May of the same year, the brand opened an Asian flagship store in Shanghai, followed by stores in Beijing, with Dickson Concepts as its local retail partner.In 2014, the company launched an official Tmall flagship store featuring American Eagle and its sister brand Aerie. With a focus on online, the retailer slowly shrunk its offline retail presence.

Known for its denim and accessible casual wear products, the American retailer has shifted its focus onto the Indian market this year, with plans to open 50 stores in partnership with Aditya Birla Fashion and Retail.Joining the likes of Urban Outfitters, Topshop, Asos and New Look that left the Chinese market in recent years, AEO’s potential exit is further evidence that the Chinese market is becoming increasingly tough.

 

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