What Happened: Moschino’s parent company, Aeffe S.p.A., has signed a letter of intent to take over management of the brand’s stores in Mainland China from Scienward Fashion and Luxury (Shanghai) Co. Ltd. beginning in June 2022. The takeover will involve around 20 stores. Additionally, Moschino will open four franchised stores with a new partner. The company expects to have 30 directly operated stores and 22 franchise units in China over the next five years.
The agreement follows Aeffe’s decision last July to acquire the 30-percent stake in Moschino it did not already own, giving the owner of Alberta Ferretti, Philosophy di Lorenzo Serafini, and Pollini full ownership of the Italian luxury fashion house.
The Jing Take: This move reflects the increasing importance China now plays in the luxury sector — something Aeffe’s financial report proves, too: In the first nine months of 2021, China drove 35 percent of the company’s total growth.
By directly operating its stores, Moschino can serve domestic shoppers better and gather more consumer insights in one of the world’s most important markets. Plus, China’s fast-changing environment has pushed brands to have their own local offices so they can react quickly to consumer shifts.
Moreover, the initiative will also benefit Moschino’s stablemates, which have yet to establish their footprints in China. In fact, while Alberta Ferretti has one store in Shanghai, its sister brands Philosophy di Lorenzo Serafini and Pollini have none in the country and mostly rely on indirect channels like multibrand stores. As such, we wonder if Moschino’s parent company could be planning something bigger even in China.
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.