The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
Ellassay Group – the Chinese womenswear giant that includes its own Ellassay brand, as well as Laurèl and IRO Paris, Self Portrait’s mainland China business and Ed Hardy in Greater China – saw overall revenue drop 24.9 percent to 1.96 billion yuan ($301 million) last year, according to its annual report.
The company also released financial data for the first quarter of this year, in which revenue reached 536 million yuan ($82.34 million), up 30.61 percent over the same period last year.
Last year, the Ellassay brand suffered a 10.41 percent year-on-year decline in combined revenue, attributed to poor distributor performance, but grew 51 percent in the first quarter, year-on-year.
Laurèl’s revenue rose 24.9 percent last year, China sales for IRO Paris rose 13.6 percent, and Self Portrait opened six stores in Beijing, Shenzhen, Xi’an, Chengdu and Shanghai following Ellassay’s investment.
With consumers tightening their belts in China, the battle between global fast fashion brands and local high street giants has intensified.
Investors are bracing for a steep slowdown in luxury sales when luxury companies report their first quarter results, reflecting lacklustre Chinese demand.
The French beauty giant’s two latest deals are part of a wider M&A push by global players to capture a larger slice of the China market, targeting buzzy high-end brands that offer products with distinctive Chinese elements.
Post-Covid spend by US tourists in Europe has surged past 2019 levels. Chinese travellers, by contrast, have largely favoured domestic and regional destinations like Hong Kong, Singapore and Japan.