Italian fashion group Aeffe has announced plans to take direct control of the retail distribution of Moschino in China. This move comes as part of Aeffe’s strategy to strengthen the brand’s position in the Chinese market. Aeffe recently acquired full ownership of Moschino by purchasing the remaining 30% stake from Sinv Holding for €66.5 million. Starting from June 2022, Aeffe aims to manage Moschino’s monobrand stores in China, which are currently operated by a local partner.
For over a decade, Moschino has relied on luxury goods distributor Scienward Fashion and Luxury (Shanghai) Co. Ltd. to handle its retail operations in China. However, the agreement with Scienward will now transition, allowing Moschino to take charge of its own retail operations in the country. Currently, the brand operates approximately 20 stores in China and plans to expand its presence further with the help of a franchising partner. The objective is to have a total of around 50 stores in China within the next five years, including both directly owned and franchised locations.
According to Massimo Ferretti, executive president of Aeffe, gaining control of Moschino’s distribution in China is a vital part of the brand’s repositioning strategy following Aeffe’s complete acquisition of the label. By directly managing distribution, Aeffe can have complete control over the brand’s value chain, including production, quality control, distribution, and advertising. This move will enable Aeffe to define Moschino’s brand image more precisely, provide dedicated customer care, and accelerate the brand’s commercial penetration in the Chinese market.
Asia is the third-largest market for Aeffe, accounting for 20% of its revenue after Italy and the rest of Europe. In the first nine months of 2021, the group’s revenue in Asia reached €50.1 million, with a growth rate of 26.9%. This growth was primarily driven by China, where revenue increased by 35%. With the direct control of Moschino’s distribution in China, Aeffe sees a significant opportunity to expand its presence in a region with vast potential.
Useful links:
– Aeffe Official Website
– Moschino Official Website
