What does it take for the oldest French fashion brand Lanvin to get a shot at China’s 350 million millennial hearts and minds?
- Lanvin marked its 130th anniversary with a concept store at the Bund Finance Centre on Shanghai’s famous riverfront Bund
- China will be its key market where it is hoping to make 40-50 per cent of its turnover in the medium term
Lanvin, France’s oldest surviving couturier, is placing a big bet on China’s 350 million millennials to revive its stagnating business in luxury fashion. It’s counting on new designs and a digital push by its deep-pocketed parent for help.
“China is our focal market, which will represent 40 per cent to 50 per cent of our overall sales in the medium to long term,” said Joann Cheng, chairman of the brand’s owner Fosun Fashion, during an interview in Shanghai with South China Morning Post. “At present, the biggest market of Lanvin is in Europe, followed by the United States, but we see the growth in China.”
Fosun Fashion, a unit of Hong Kong-listed Fosun International, bought 65.6 per cent of the unprofitable Lanvin in February 2018. The purchase expands Fosun Fashion’s portfolio of global brands, including Italian menswear brand Caruso, control of Vienna-listed luxury textiles maker Wolford and US knitwear label St. John.
Lanvin, whose prices of bags, couture and accessories are comparable to those of Gucci, Chanel or Louis Vuitton, has opened three stores in Shanghai and Hong Kong since Fosun’s takeover. The brand marked its 130th anniversary on Friday with a concept store at the Bund Finance Centre on Shanghai’s famous riverfront Bund, adding to the five it already operates in the world’s most populous consumer market.
China, with 26 per cent in projected annual growth in the sales of luxury products including watches, clothing and shoes, has been the main growth driver for the world’s premium brands. This year’s sales may reach €30 billion (US$33.3 billion), according to a report released by research firm Bain & Co on November 28.