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.
Sequoia Capital China has strategically invested in French designer brand Ami, with the aim of further globalising the 10-year-old fashion label’s business, according to a post on Sequoia Capital China’s official WeChat account.
The investment will make Sequoia Capital China the “controlling shareholder” of Ami, though financial details of the deal remain undisclosed. Founder and creative director Alexandre Mattiussi and CEO Nicolas Santi-Weil retain their respective roles.
An obvious advantage of bringing a Chinese partner on board for fashion brands such as Ami is their expertise in the lucrative China market, which remains the biggest driver of growth in the fashion and luxury segments. Indeed, in announcing the deal, founder and managing partner of Sequoia Capital China, Shen Nanpeng said: “We will help the brand quickly achieve digital transformation and penetrate deeply into the local market.”
Time will tell whether this is indeed the case for Ami, though recent history shows a mixed bag when it comes to international brands finding success in China with the help of a Chinese partner. Currently, Ami has stores in France, the United Kingdom, China and Japan, with more than 350 points of sale worldwide.
As the country’s economy moves into deflationary territory, manufacturing output declines and a real estate crisis worsens, some consumers are becoming increasingly cautious.
Its flagship brand struggled following the departure of its creative director but better growth was seen at other labels.
After years of outsized growth in prestige cosmetics, consumers have pulled back on the typically recession-proof category.
Last year’s harsh pandemic restrictions and recent raids on foreign firms have made it harder for Western fashion companies to persuade top international talent to move to the country.