MILAN, Oct. 27 (Class Editori) - SMCP aims at the Asian market. The group, which controls brands such as Sandro and Maje, has declared it will rise its marketing spending and will focus on the Chinese market in order to open stores, by putting a stop to efforts in other areas, after years of fast expansion.
The French company, owned by the Chinese Shandong Ruyi, has widened its stores’ network in the past years, with more than 80 new stores every 12 months, even though it has reduced openings in 2020 due to the coronavirus pandemic.
In a strategy update, SMCP has affirmed it will reduce the opening rate to about 40 per year, between 2021 and 2025, half of which will take place in China, an important market for the high-end fashion groups which have to increasingly satisfy Chinese customers at home due to travel restrictions after the COVID-19 spread.
Retailers have been strongly affected by the pandemic. After that restrictive measures had forced stores to close, SMCP sales have decreased by 10.6% in the third quarter. At the beginning of the year, aids were needed in the form of a €140 million guarantee loan by the Government. The company will invest more in the online sales increase and the CEO, Daniel Lalonde, has affirmed that every brand will double its marketing expense from 2021. More specifically, SMCP aims at gaining half of its turnover from the Asia-Pacific area by 2025. Currently, the region accounts for a quarter of revenues.
(Source: Class Editori)
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