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Luxury Brand faces the made-in-China stereotype PORTS.doc

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Luxury Brand faces the made-in-China stereotype PORTS.doc

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Luxury Brand faces the made-in-China stereotype PORTS.doc

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文档介绍:Luxury Brand faces the made-in-China stereotype:PORTS
Larissa Zemke
Abstract
This paper discusses the made-in-China stereotype and issues faced by PORTS, a China-based luxury brand founded in 1961 in Toronto, Canada.[1] The paper begins with a brief background of PORTS and proceeds with an analysis of the strengths and weaknesses of PORTS 1961. An in-depth examination of the made-in-China stereotype faced by PORTS reveals an issue that pany is continuously confronted with. Moreover, an interview conducted with an intern at pany’s wholesale office in New York provides critical insight on pany’s current struggle with operational and brand management issues. Ultimately, an evaluation of decisions made by PORTS 1961 reflects the need for a revised international marketing and merchandising strategy and a thorough value chain analysis to determine whether manufacturing should be moved abroad.
Background
The PORTS INTERNATIONAL luxury brand was founded by Luke Tanabe in 1961 in Toronto, Canada. What began as a family business, the Tanabe daughters quickly turned into a brand associated with style, luxury, and well-tailored career sportswear.[2] During pany’s prime time in the 1970s and 80s, it owned over sixty retail stores in Canada, the United States, and the United Kingdom.[3] In 1989, Alfred Chan, founder of contract manufacturing business Etac Sales Limited (ESL), acquired PORTS INTERNATIONAL from Luke Tanabe: “by 1992 ESL owned numerous upscale brands and over 100 stores in North America, which amounted to revenues over US$165million. ESL further expanded its retail operations in other regions, including nascent Chinese market.”[6>4] However, the global recession in the early 90s and the ratification of the North American Free Trade Agreement, caused US luxury brands to flood the Canadian market, thus leading to the acquisition of PORTS international by creditors. The Chan brothers withdrew their stakes in ESL and soon filed for bankruptcy.[5] Upon recovery, th