Wrangler's plan to enter China put on hold

Wrangler's big plan for 2020 was to start selling the 73-year-old denim brand in China. Now, thanks to the coronavirus outbreak, that's on hold.

Kontoor Brands Inc, which owns Wrangler and Lee, said on Thursday that the launch was now scheduled for the autumn, after previously targeting the fast-growing market in February or March.

"We have made the decision to launch in the autumn for all the obvious reasons," CEO Scott Baxter said in an interview. "The stores have been closed, the consumer is not shopping and we're really just thinking through the advertising piece right now."

The delay is another example of how the viral outbreak is upending companies' best-laid plans in all areas, from employee travel to company events and sales strategies.

With new cases of Covid-19 cropping up from the United States to New Zealand, airlines are reducing flights and consumers are stocking up on food and health supplies in anticipation of a sustained disruption of daily activities.

In Kontoor's case, the apparel maker has had its eyes set on China for at least a year. Its Lee apparel line is already China's biggest denim brand, and after the company was spun off from VF Corp last year, bringing Wrangler there was a major goal.

But the plans for the brand, which is closely tied to American country music, have run into a series of hurdles. In 2019, the uncertainty surrounding tariffs complicated things. Then came coronavirus, which has roiled life in China, keeping malls and shopping centers empty after emerging in Hubei province toward the end of last year.

Wrangler's planned rollout included events for consumers and shows to highlight the brand.

"That's not happening now,'' Baxter said, but "Kontoor is still working to build brand awareness through digital and social media advertising.''