What Happened: Fosun Fashion Group, a global luxury fashion platform based in China, has signed an agreement to acquire 100 percent of Sergio Rossi S.p.A. The transaction is expected to close during the summer and will not change the high-end shoemaker’s current leadership. This marks Fosun’s second Italian acquisition after Caruso and its first vertically integrated luxury accessories brand, adding to its robust portfolio that includes St. John, Wolford, and Lanvin.
The Jing Take: With just eight directly operated stores in mainland China and four in Hong Kong, Sergio Rossi has room to grow. In fact, the Italian fashion house, which was previously owned by Kering and then Investindustrial, only opened its first online store in China in April 2020. Now, by joining forces with Fosun, the footwear brand could see more resources to ramp up expansion in the market, from strengthening local teams, to reinforcing its digital business, to increasing marketing spend.
For Fosun, the takeover solidifies its status as “one of the first movers to create a global luxury fashion group in China.” According to the company, the acquisition “not only completes a more well-rounded strategic brand ecosystem for [Fosun], but also creates potential synergies between brands through Sergio Rossi’s fully owned and state-of-the-art factory.” This comes after an alliance with e-commerce firm Baozun and marketing solutions provider Activation Group, which bolsters Fosun’s ability to help brands execute their China strategies. Given this mega partnership, it’s unlikely the M&A crusade will end here.
That said, there’s still much to do before Fosun can go head-to-head with global luxury conglomerates like LVMH, which controls 75 prestigious brands across six categories, or Gucci’s parent Kering. But where Fosun shines is where others often struggle; as more players move in on what will be luxury’s largest market, the Shanghai-based company already has home field advantage, offering its brands a full spectrum of services to thrive locally.
The Jing Take reports on a piece of the leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debate sprouting on Chinese social media.