New York-based fashion retailer J. Crew has set its eyes on Asia for its first international expansion.

China, where European brands are in high demand, will be its first Asia location. J. Crew will initially open inside Lane Crawford’s store at IFC mall in Hong Kong and Seasons Place store in Beijing. As well as physical stores, J. Crew will offer an online shopping option via Lane Crawford’s website.

While some retailers are skeptical about expansion into China due to slowdown, J. Crew believes China will be one of the growth drivers for the company. CEO Mickey Drexler said the company is looking for retail space in an upmarket mall in Hong Kong where it plans to set up standalone store. Store openings are also lined up for the mainland China.

J. Crew is also exploring possible relationships in Japan in an attempt to re-enter the market. The retailer had 65 stores in Japan several years ago, however, a large number were closed due to poor performance. In 2009, the remaining stores were shut down after its licensing agreement expired.

“We had a licensed deal that was so poorly managed. The stores were embarrassing, and there was too much else to do in America,” Drexler said.

Despite the economic slowdown, J. Crew will face tough competition in China’s saturated market. However, Drexler believes there’s a niche for the company.

“We offer an alternative that’s not being offered in the marketplace today,” Drexler said.

In north America, J. Crew plans to open 42 new stores this year in addition to its current 358 stores.

GB