Fosun Fashion Group Forms Alliance with Baozun and Activation
LONDON – Fosun Fashion Group, the Chinese owner of Lanvin, Wolford, St John, and Caruso, has formed a strategic alliance with e-commerce firm Baozun, Activation Group and other industry players to strengthen its ability to capture China’s emerging demand for luxury brands.
As a part of the partnership, Baozun and Activation both become minority shareholders in Fosun Fashion Group, and the preferred platform for all brands in FFG’s portfolio in their respective fields, as well as FFG’s preferred partner in exploring new business models and solutions for brand expansion.
Fosun said the consortium aims to serve the global luxury market by developing an ecosystem to promote additional operational value in China.
Founded in 2007, Baozun is a Hong Kong and Nasdaq dual listed company that has grown significantly over the years with China’s booming e-commerce industry. It is one of a dozen “six stars” service partners, rated by Tmall. It set a new record last Singles’ Day, with a total order value of 16.50 billion renminbi, or $2.55 billion, a 54.8 percent jump year-over-year, from its wide range of international clients, such as Farfetch, Nike, Gucci, Burberry, Coach, Zara, Maison Kitsune and Victoria Beckham Beauty, as well as Microsoft, Adobe, Tencent, Nintendo, Bayer and Burger King.
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The Hong Kong-listed Activation Group is one of China’s most prominent marketing solutions providers that serves a wide range of international luxury brands. Since 2016, the Group has also tapped into the sports and entertainment IP development sector. Activation holds the exclusive right to organize authorized events with the LaLiga Club brand and Le Tour de France brand and other rights for marketing, sponsorship, merchandising in China.
Joann Cheng, chairman of Fosun Fashion Group said: “As the global landscape of e-commerce and digitalization changes, there is no doubt that it is changing faster in China than in any other market. We made a strategic decision to form this consortium through a capital transaction so that we can leverage the operational experience our partners have built over the years.”
“We believe this strategic alliance is the first step in a deeper and broader long-term relationship with Baozun, Activation and others, while continuing a successful journey with our brand partners in China,” she added.
Vincent Qiu, chairman, and chief executive officer of Baozun, said the alliance helps to extend “our value chain in the luxury segment, taking advantage of Fosun Fashion Group’s strong understanding of the brands, and track record in brand building.”
“China is on its way to becoming the main growth driver of the global luxury market. We believe our unique position in the sector will bring added value to our brand partners, while at the same time contributing in a healthy and sustainable way to our top and bottom lines within the next three to five years,” he added.
Activation’s joint-chairman and ceo Steve Lau Kam Yiu said the group’s “rich experience and expertise in providing comprehensive sales and marketing solutions can add value and create more business opportunities for this strategic alliance and assist brands under the Fosun Fashion Group to successfully penetrate the China market and eventually become a leader in the fashion trend.”
Fosun Fashion Group is the fashion arm of the Chinese multinational conglomerate Fosun International. In 2018, the group entered the luxury game by acquiring a majority stake in Lanvin from Shaw-Lan Wang, and appointed Bruno Sialelli as artistic director in 2019.
Under FFG’s management, Lanvin has been pivoting toward a new direction and doubling down on China expansion. The brand hired Shanghai-based Calvin Luo as a consultant in late 2020 to work with the Paris-based design team on merchandising and product development as well as market and cultural insights.
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