The Chinese fashion company Fosun Fashion Group has a new name, Lanvin Group, and new investors, bringing its worth to more than $1 billion. The Shanghai-based company intends to expand its presence in Asia and the United States while also expanding its range of premium and luxury brands.
In an interview, Joann Cheng, head of Lanvin Group, said, “Every brand has a plan to come to China and flourish.” “Overseas markets continue to account for 90% of our revenues.” Only ten percent of fashion earnings comes from China.”
It collected roughly $150 million in its most recent fundraising round, which included two key partners — Japan’s Itochu Corp. and Chinese high-end footwear producer Stella International — as well as private equity company Xizhi Capital. Lanvin Group has raised $300 million in two rounds of funding, which will be used to expand its five brands — Lanvin, Sergio Rossi, Wolford, St. John, and Caruso — as well as its war chest for prospective acquisitions.
She stated that Lanvin Group aims to focus on the premium and luxury sectors, but that leather accessories and fashion technology are two categories that she is particularly interested in. Stella International, based in Hong Kong, specializes in sportier footwear and manufactures for brands such as Off-White, Prada, Balmain, and Balenciaga, according to Cheng. Stella International will offer Lanvin Group its “industrial expertise” as a strategic partner, assisting it in developing capsules of sneakers for some of its brands, for example.
In the meanwhile, Itochu will assist Lanvin Group brands in breaking into the Japanese market. With two flagship boutiques, five outlets, and 15 shop-in-shops, Sergio Rossi now has the strongest presence on the island country. Itochu has been a long-time Lanvin collaborator, having owned and administered the label in Japan since 2004. The Lanvin en Bleu line was also introduced for the Japanese market. However, there are no Lanvin stores in Japan.
Itochu is Japan’s third largest trade firm, having been formed in 1858. It has Paul Smith, Laura Ashley, Converse, Vivienne Westwood, and other designers’ licenses. It is believed that Itochu will be able to assist Lanvin Group in locating premium retail sites and sourcing partners.
Cheng noted significant potential for Lanvin Group brands to extend their retail reach globally — notably in new and established Asian regions, as well as the United States and Europe — and to utilize digital and an omnichannel strategy. She floated Lanvin beauty goods as a possible extension for the famous French fashion business, founded in 1889, saying that launching new product categories is another development path.
The company has established 25 shops worldwide in the last 15 months, with 19 of them in Greater China. The majority of the boutiques are for Lanvin, although Caruso recently opened its first Shanghai store. Cheng stated that the company is in the process of “adapting retail locations for all brands.” It recently closed an unprofitable St. John store in Hawaii, and Lanvin merged its men’s and women’s stores in New York City into a single Madison Avenue site.
According to corporate statistics, the five Lanvin Group brands have 200 retail shops and 1,000 points of sale in over 60 countries. K11, a lifestyle brand and luxury shopping mall operator, and Neo-Concept Group, a sustainable fashion maker, are among Lanvin Group’s other key partners.
Fosun International Ltd., which is involved in the health, real estate, and mining industries, launched its fashion business in 2017 to capitalize on the ebb and flow of demand for high-end items, eventually acquiring Lanvin a year later. “Fosun has a proven track record of capitalizing on high-growth industries and developing consumer-driven ecosystems,” said Guo Guangchang, chairman and cofounder of Fosun International Ltd.