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.
The Chinese fashion group’s annual revenues hit 9 billion yuan ($1.4 billion), up 14.3 percent year-on-year. Its net profits reached 711 million yuan ($108.6 million), up almost 29 percent compared to 2019.
The Ningbo-based company attributed this growth to its focus on sales channels, which has seen it grow direct-to-consumer stores, scaling franchise locations and expanding into social commerce while maintaining rapid growth in traditional e-commerce platforms. It has also become increasingly responsive to market demand in relation to product design, production and inventory. Lower rents during the pandemic also helped lower costs.
Founded in 1995, Peacebird Group now operates seven sub-brands spanning womenswear, menswear, childrenswear and home goods, which are distributed across 4.500 stores in mainland China and multiple digital channels.
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.