The Shandong Ruyi-owned French group has continued to extend in the Chinese market, where consumption has speeded up again and premium and luxury players have new growth perspectives.
Luxury and premium fashion retailers accelerate growth in China. Prada Group and SMCP have given a new boost to their store expansion in the Asian behemoth, after it left behind a period of economic slowdown and a sudden withdrawal of luxury players in the country.
In May, Prada, which is listed on the Hong Kong Stock Exchange, has opened three new stores of its eponymous brand, two with Miu Miu and other two shops with Church. All of them are located inside the SKP shopping mall, in the city of Xi’an.
The group’s revenues in China reached 645 million euros in 2017, up 8% over the prior year. On the contrary, Prada Group saw a 3.6% decrease in sales worldwide to 3.1 billion euros. The company’s profit stood at 249 million euros, in opposition to 278.3 million euros in 2016.
Prada Group opened seven new stores in China during this month
SMCP, owner of the Sandro, Maje and Claudie Pierlot premium brands, also marked a milestone in China after opening its hundredth store in the country. The shop is located in the Chaoyang Joy City mall, in Beijing.
The retailer aims to reach five hundred stores in the Asia juggernaut in coming years, the same amount of points of sale that it has in France, according to WWD. SMCP currently belongs to Chinese group Shandong Ruyi, which took over the French company in 2016 for 1.3 billion euros. Previously, SMCP was part of investment fund KKR.
China is gaining momentum for the fashion industry. Product sales in 2016 reached 233.9 billion euros in 2016, approaching the same level of the United States, until now the largest and undisputed market for fashion worldwide, according to Euromonitor data collected by EAE Business School.