The latest sales report from SMCP sheds light on the obstacles that the fashion group encountered in the tumultuous year of 2020. Despite facing a substantial decline in sales, totaling €873 million for the year, SMCP exhibited resilience, with its digital capabilities and focus on the Chinese market playing a crucial role in sustaining the business.
The pandemic-induced challenges were evident in the 23.9% organic decrease in sales and a 22.9% decline in reported figures for the year. The impact of global lockdowns and store closures was most pronounced in the Americas, which saw a 36.8% decline, followed by EMEA excluding France at 30.1%. Despite these setbacks, the Asia-Pacific region, particularly Mainland China, experienced a notable 21% growth in the fourth quarter, showcasing signs of recovery.
One of the standout aspects of SMCP’s performance was its robust digital presence, leading to a 27.6% increase in digital sales for the year. The company’s strategic investments in digital initiatives like live-streaming and virtual shopping paid off, particularly in engaging with millennials in China. Moreover, the success of accessories, driven by key products like the M Bag and Yza Bag, contributed to the positive digital performance.
Looking ahead, SMCP’s CEO Daniel Lalonde remains optimistic about the growth potential in China and emphasizes the importance of digital innovation and consumer engagement in the post-pandemic landscape. By leveraging its digital strength and adapting to evolving consumer preferences, especially in key markets like China, SMCP is well-positioned to navigate the challenges and emerge stronger in the future.
For more information on SMCP’s digital initiatives and sales performance, visit SMCP’s official website and Business of Fashion.
