OTB’s Renzo Rosso on success of ‘alternative luxury’ in China

Earlier this week, Only The Brave (OTB) founder and chairman Renzo Rosso landed in China, a market that has been fertile ground for his group’s portfolio of brands. In 2023, Diesel turned profitable with year-on-year sales revenue growth exceeding 13 percent. And Maison Margiela recently posted a 23 percent YoY rise in turnover, much of it thanks to China and South Korea. Overall, Asia Pacific is propelling the group’s expansion. During Milan Fashion Week last month, Rosso told Jing Daily that the group had heavily invested in China. “We have put 60 percent of the group’s total investment into this country. We strongly believe in this country,” he says. Alternative luxury Why are OTB’s brands successful in China? “Because we are an alternative to what others do,” says Rosso. The group’s brands, from Maison Margiela and Diesel to Jil Sander and Marni, are headed by genius creative directors like John Galliano, Glenn Martens, Francesco Risso, and Lucie and Luke Meier, with strong visions and unique aesthetics. “At the moment there are two directions on the market. There are the big groups that are going more into the world of entertainment. Instead, our group focuses more on the development of the product, the beauty of the product,” Rosso says. “We are still creating dreams and the desire to buy a product. In a time when everything is possible, everything is easy and fast, we are still connected to the true values of a product. I think our success in China results from this,” he adds. OTB’s labels cater to shoppers who wish to express their individuality through their outfits. China’s youth demands alternative options to the mass-produced items commonly known and worn. Renzo recalls that in the early days, “to have a space in the malls, we had to knock on the door and there was never a space because the large groups took everything they wanted.” “But today, they are giving us space because we are ‘alternative’ to what others do,” he adds. What did not work a decade ago, is now a strength for OTB. China’s dynamic fashion scene has turned Maison Margiela and Diesel’s alternative cult styles into core assets for the group. Direct retail In 2022, four OTB brands – Maison Margiela, Marni, Jil Sander, and Amiri – took over the facade of the then newly opened JC Plaza Shanghai luxury department store to promote their new flagships, covering 2,400 meters square in total, at the retail destination. JC Plaza is the group’s largest retail project globally to date. “First comes the product, and with the product you can do anything you like. With a product you can develop a brand, a company, a structure, you can open stores. But without creativity there is no way,” says Rosso. In 2023, the group opened 76 stores globally, of which 30 are in China. This aggressive retail expansion reflects Rosso’s strategy of maintaining as much control over distribution channels as possible. “Retail is the most important thing. If you sell wholesale, then you create a parallel world that you cannot control,” Rosso says. “Today, thanks to digital platforms, the products can also be sold with discounts, and this creates confusion on the market; you can find all products at all prices. The more you control the market with your stores, the more you can show your brand’s seriousness.” Engaging China “We love to engage with China,” Rosso says. He started his China tour with a visit to Maison Margiela’s Shanghai store, which recently released a collection of hyped sunglasses designed in collaboration with Gentle Monster. He then showed up at the office of Chinese designer Dingyung Zhang, who created a capsule collection of exaggerated puffer jackets for Marni. “We don't want to go to this country just to sell, but to create interaction,” Rosso tells Jing Daily. As well as partnering with local talents, Rosso occasionally gives talks at Chinese universities, experiencing the country’s youth culture firsthand. The Marni x Dingyun Zhang collab is one example of the Italian group’s approach. In 2021, it also collaborated with the Miao minority ethnic group, known for its exquisite craftsmanship, which is part of China’s intangible cultural heritage. Meanwhile, Diesel created a capsule with the prominent Chinese creative duo behind the up-and-coming brand Pronounce in 2020, and MM6 partnered with homegrown puffer coat maker Chen Peng last year.

OTB’s Renzo Rosso on success of ‘alternative luxury’ in China

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Published March 28, 2024

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OTB’s Renzo Rosso on success of ‘alternative luxury’ in China