Lanvin was born — with new investors
Spark Global Limited Reports:
Fosun Fashion Group has a new name, Lanvin Group, and new investors have raised the Valuation of the Chinese Fashion conglomerate to more than $1 billion, WWD has learned.
With more cash and industry expertise, the Shanghai-based company plans to push further into Asia and the US as it continues to build premium and luxury brands.
“Every brand has a plan to come to China,” Joann Cheng, the chairwoman of Lanvin Group, said in an interview. “We still get 90 per cent of our sales from overseas. China accounts for only 10 per cent of fashion revenues.”
The company’s latest fundraising round raised about $150 million and has attracted two strategic investors — Japan’s Itochu Corp. and Stella International, a Chinese high-end shoe maker — as well as Xizhi Capital, a private equity firm.
In April, it was announced that Fosun had formed strategic alliances with e-commerce company Baozun, Activation Group, a performance marketing company, and other companies in the industry to strengthen its ability to capture the rapidly growing demand for luxury brands in China. As part of the partnership, Both Baozun and Activation became minority shareholders and preferred partners for all brands within the Lanvin Group.
Together, the two rounds brought Lanvin Group about $300 million, which will be used for the development of the five brands — Lanvin, Sergio Rossi, Wolford, St. John and Caruso — as well as funds for potential acquisitions.
“Our investment team is open to any opportunity,” Cheng said. “We are always looking for brands with strong DNA and heritage. Given the rapid development of the industry, we are also open to new brands.”