Fosun Fashion Group, the Chinese owner of Lanvin, Wolford, St. John and Caruso, has formed a strategic alliance with e-commerce firm Baozun, Activation Group and other industry players to strengthen its ability to capture China’s fast-growing demand for luxury brands.
As a part of the partnership, Baozun and Activation will both become minority shareholders in Fosun Fashion Group, and the preferred partners for all brands in FFG’s portfolio, as well as in exploring new business models and solutions for brand expansion.
Fosun’s unprecedented alliance in China is also a sign of further consolidation in the luxury sector that ‘s been accelerated by the pandemic. Traditional competitors are now joining hands to protect their shared interests.
Last November, Farfetch inked a mega partnership deal with Alibaba and Compagnie Financière Richemont. Kering’s Pinault family is also putting funds into the new luxury retail venture that’s targeting China’s online luxury market.
After the acquisition of Tiffany, LVMH Moët Hennessy Louis Vuitton recently upped its stake in Tod’s to 10 percent, and multiple sources said private equity fund L Catterton, which is partially owned by Bernard Arnault, has expressed interest in acquiring a stake in the family-owned Italian brand Etro.
The Chinese intend to prevent “Le seigneur des Arnault” to being the emperor of luxury.