What’s driving OTB’s China store closures?

What happened Italian luxury group Only the Brave (OTB), known for brands like Maison Margiela, Marni, and Jil Sander, has undergone a series of changes to its retail hold in China, where store closures have signaled a challenging market landscape. In recent months, Maison Margiela shuttered locations in Kunming, Shanghai’s IFC Mall, and Hong Kong’s K11 Musea. Marni also exited Hong Kong’s Landmark, Sogo in Causeway Bay, and Xiamen’s MixC. Its capsule brand, Marni Market, is set to leave China entirely. Meanwhile, Jil Sander has followed suit with closures in Xiamen and Chengdu. These closures come amid broader challenges for OTB. Chairman Renzo Rosso previously indicated that a potential IPO might be delayed to 2026 due to the industry-wide downturn. This latest postponement is just one in a series, as OTB initially targeted a 2024 listing, later revising it to 2025. Despite experiencing a growth spurt last year, particularly in China where Margiela sales jumped 72.4% — the company’s trajectory now appears uncertain. Officially, however, OTB emphasizes its commitment to China, framing recent closures as part of a larger strategy to realign its presence with a more focused brand positioning. In an official statement, OTB noted, “China remains a priority market for OTB Group. We believe in the potential of this great country and have welcomed the measures implemented by the Chinese government to support the economy and stimulate the recovery of consumption in our sector.” Since 2022, OTB has opened 103 new stores in “strategic locations,” while closing others deemed less aligned with the positioning of its brands. The company clarified that some closures took place in order to relocate stores to areas that better-targeted specific demographics and for brand identity. The Jing Take As demonstrated by OTB’s recent changes, the luxury retail scene in Hong Kong and China is undergoing a major shift — with brands trying to strike the right balance between pushing for growth and staying true to their identities amid an economic slowdown and changing consumer behaviors. In recent months, Rosso expressed optimism about their positioning in China. According to him, OTB brands stand out as “alternatives” in China’s luxury market, where consumers are increasingly attracted to unique, creative products. Rosso highlighted OTB’s commitment to product quality and design over entertainment-led branding, differentiating his brands from larger luxury houses that rely on global media and influencer partnerships. The group has invested 60% of its capital into China, betting on its portfolio’s “alternative” appeal to resonate with younger, trend-focused consumers. The company has aggressively expanded its retail footprint in China, even making a splash in 2022 by launching four flagship stores – Maison Margiela, Marni, Jil Sander, and Amiri – in Shanghai’s JC Plaza. Yet, this expansion may have overstretched the company’s resources, especially given the challenges of maintaining premium branding across such a large network. OTB’s strategic considerations underscore the high-risk, high-reward nature of China’s luxury market, particularly for foreign brands that may lack deep-rooted cultural cachet. Unlike traditional luxury houses, the group's style-first approach focuses on designer aesthetics over longstanding heritage. This approach worked well during China’s economic boom when affluent, younger consumers were eager to buy into new luxury identities. However, as the global economy slows, these consumers may now be prioritizing established luxury brands like Hermès over niche players. This shift is significant; maintaining high sales in China requires both relevance and resilience and a brand’s ability to foster long-term loyalty rather than depend on trend-based demand. 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.

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What’s driving OTB’s China store closures?