China’s Fosun Fashion Group has beefed up its luxurious holdings with its second Italian acquisition, snapping up storied footwear specialist Sergio Rossi — and plotting an growth drive in Asia.
Divulging the transaction completely to WWD, Fosun stated it acquired 100% of Sergio Rossi SpA from Absolute Luxury Holding Srl, an independently managed subsidiary of European funding home Investindustrial, including to a portfolio that features French home Lanvin, Austrian hosiery specialist Wolford, Italian males’s put on firm Caruso and American trend model St. John.
Financial phrases weren’t disclosed.
The growth means that Fosun Fashion Group continues to be looking out for acquisitions — and punctiliously establishing its luxurious portfolio. It additionally underscores heightened investor curiosity within the footwear class, with Christian Louboutin, Birkenstock and Dr. Martens all concerned in current offers or preliminary public choices, and Adidas within the strategy of in search of a purchaser for Reebok.
“This acquisition not only completes a more well-rounded strategic brand ecosystem for FFG, but also creates potential synergies between brands through Sergio Rossi’s fully owned and state-of-the-art factory,” Fosun stated in a press release, trumpeting itself as “one of the first movers to create a global luxury fashion group in China.”
It is known FFG beat out an extended checklist of suitors with its dedication to develop the model for the long run, and its formidable muscle in China. In current years, Sergio Rossi chief govt officer Riccardo Sciutto has succeeded in reorganizing the corporate, modernizing its manufacturing plant in Italy’s San Mauro Pascoli, a key footwear district, and giving a exact identification to the product in sync with the late namesake founding father of the model.
In an interview on Wednesday, FFG chairman Joann Cheng stated she spies many potential synergies.
“We can foresee the product development and production of shoe products for Lanvin and St. John by utilizing Sergio Rossi’s state-of-the-art manufacturing plant and the team of over 150 experienced artisans working on prototyping and shoemaking,” she stated. “We can also foresee interesting collaborations between the brands, whether it’s Sergio Rossi x Lanvin, St. John or Wolford, as these four brands are all known for their dedication to the femininity, elegance and confidence of contemporary women, with a strong focus on craftsmanship.”
Cheng famous that Sergio Rossi is the primary vertically built-in luxurious equipment model in FFG’s portfolio, and echoes its penchant for corporations with robust savoir-faire and built-in factories, as is the case for Wolford, Caruso and St. John.
Among growth priorities for Sergio Rossi are:
• enhancing native groups and methods for the Greater China market, simply as FFG did for Lanvin and its different manufacturers;
• reinforcing Sergio Rossi’s digital and omnichannel enterprise, which was initiated in 2018 and nonetheless has “huge room for improvement,” in keeping with Cheng;
• burnishing model consciousness globally with an upgraded advertising spend, and different techniques.
“We believe Sergio Rossi has a solid ground for exponential growth in the coming phase,” Cheng instructed WWD, touting its “beautiful brand name and heritage, its first-class production know-how and facility, and its established product collections and distribution channels.”
At current, Sergio Rossi counts eight straight operated shops in mainland China and 4 in Hong Kong, plus a number of franchised shops within the area.
Over Zoom, Cheng described “huge potential” for the model in Greater China, given its “very strong DNA,” status for magnificence and luxury, and haute craftsmanship. She additionally highlighted that leather-based items are effectively fitted to on-line distribution, and Sergio Rossi has loads of “untapped” potential to increase on this channel.
Wearing a putting Lanvin shirt with billowing sleeves, Cheng defined that FFG has been footwear and leather-based items corporations since 2018, and visited quite a few producers in France and Italy.
She famous there can be no modifications in Sergio Rossi administration.
“The current leadership of the company has demonstrated their strong commitment and ability to develop the brand,” she stated. “They will continue leading the company with the support from FFG, which — besides capital — can also bring vast expertise and resources in the Asian market and digital space, the two major growth pillars for the brand in the next years.”
Cheng touted Sergio Rossi’s wealthy heritage, describing the corporate’s archive of greater than 6,000 sneakers and 13,000-plus digitalized paperwork as “luxuriant material and inspiration for the design of Sergio Rossi’s current products.”
“Going forward, the DNA and positioning of the brand will remain unchanged, which is a core thesis for us to cultivate any brand under FFG,” she defined. “But we will aim to bring more innovation and excitement to it in terms of how the collections are structured on top of its classic lines, how the story is told in a digital atmosphere among today’s consumers, as well as how to play with a localized strategy in different markets.”
She famous newness may come from updates of the model’s traditional traces, new collections, “experiments by collaborating with different creative talents or a different way of storytelling that’s adapted to today’s environment and consumers.”
Investindustrial ran Sergio Rossi since 2015, when it acquired the Italian shoemaker from French luxurious group Kering.
Michael Guan, chairman of Asia at Investindustrial, famous that attributable to its globalization efforts, “sales in Asia, and in particular China, grew significantly to become the key region for Sergio Rossi. We believe FFG, with its strong position in China and Asia, is an ideal new owner to help Sergio Rossi expand in the region.”
Rothschild served as adviser to Investindustrial.
“I strongly believe in this project, which will be developed in continuity,” stated Sciutto, who instructed WWD he’s a co-investor within the automobile Fosun set as much as purchase Sergio Rossi. “While the agreement opens ups a new phase of the company, my staying on is also a sign of this consistency.”
The govt, who joined Sergio Rossi in 2016, highlighted the individuality of it manufacturing plant, which produces round 200,000 pairs of sneakers per yr. Sciutto spearheaded a return to the origins of the corporate, when Sergio Rossi produced for the likes of Azzedine Alaïa, Versace, Moschino, Dolce & Gabbana, Gucci, Yves Saint Laurent and Bottega Veneta, by inking new manufacturing agreements with different manufacturers, reminiscent of Bottega Veneta and Amina Muaddi for spring.
Cheng thanked Investindustrial for its “investment, commitment and leadership over the past five years and we look forward to carrying the legacy of Sergio Rossi forward into this new chapter.”
Sergio Rossi, which closed 2020 with revenues of 60 million euros, operates 64 boutiques, of which 45 are straight owned flagship shops in prime luxurious areas throughout EMEA, Japan and Greater China, and the steadiness franchise areas.
A footwear legend who constructed certainly one of Italy’s most admired luxurious shoe manufacturers and who impressed generations of designers, together with his son Gianvito, Sergio Rossi died final yr at age 84 of COVID-19. Since founding his model in 1951, Rossi developed quite a lot of groundbreaking types, such because the Opanca sandal with its curved sole.
Launched in 2017 and based mostly in Shanghai, Fosun Fashion Group is the style arm of the Chinese multinational conglomerate Fosun International Limited. In 2018, the group entered the posh recreation by buying a majority stake in Lanvin.
Underscoring its experience in Asia, FFG lately shaped a strategic alliance with e-commerce agency Baozun, Activation Group and different business gamers to strengthen its capability to seize China’s fast-growing demand for luxurious manufacturers. As a part of the partnership, Baozun and Activation grew to become minority shareholders in Fosun Fashion Group, and the popular companions for all manufacturers in FFG’s portfolio, in addition to in exploring new enterprise fashions and options for model growth, as reported.
Fosun International is a client conglomerate that has operated in tourism, sports activities, meals, leisure, well being care, prescribed drugs, insurance coverage and different sectors because it was based in 1992. It is current in additional than 20 international locations and manages greater than $117 billion in whole property.
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