Moschino has signed a letter of intent to take on the management of the brand’s stores in mainland China, effective in June 2022. The stores have been operated for the past 10 years by Scienward Fashion and Luxury (Shanghai) Co. Ltd.
This is “another pillar of Moschino’s repositioning strategy,” said executive chairman Massimo Ferretti.
The agreement follows Aeffe’s decision last July to acquire the 30 percent stake in Moschino it did not own from Sinv Holding SpA, Sinv Real Estate SpA. and Sinv Lab Srl, for more than 66.5 million euros, with the goal to further develop the label.
“We are now able to manage the entire brand value chain, from product to quality, from distribution to communication,” said Ferretti. “Given the importance of the mainland China market, the direct management of the distribution will permit us to accurately control the brand image, provide an attentive customer service and, above all, to accelerate the commercial penetration based on a development plan that includes new openings and the strengthening of the travel retail business.”
The executive acknowledged the company’s partners expertise in “developing the market over the past years, which has laid a solid foundation for the brand.”
The takeover will involve around 20 stores. In addition, Moschino will open four franchised stores with a new partner. The company expects to have 30 directly operated stores and 22 franchised units in five years.
The Italian fashion group is publicly listed on the STAR segment of the Italian Bourse, and, in addition to Moschino, its stable of brands include Alberta Ferretti, Philosophy di Lorenzo Serafini and Pollini.
As reported, Aeffe saw a strong acceleration in the first nine months of the year, which led the Italian fashion company to report a net profit of 23.2 million euros compared with a net loss of 14 million euros in the same period last year.
In the nine months ended Sept. 30, revenues amounted to 250 million euros, up 20.9 percent compared with 206.8 million euros in the same period last year, driven by double-digit growth in all its markets.
In Asia and in the rest of the world, sales rose 26.9 percent to 50.1 million euros, representing 20.1 percent of the total. The Greater China area drove the growth, with a 35 percent gain.
Moschino was founded by Franco Moschino in 1983 and Aeffe has held the license for the production and distribution of the brand’s women’s and men’s collections since then.
Following the designer’s death in 1994, Aeffe acquired a 70 percent stake in the company, further developing the brand globally. Rossella Jardini succeeded her mentor, Franco Moschino, designing the collections for two decades, until Scott’s arrival.
The American designer has successfully tapped into the quirky and ironic vein so ingrained in the brand by the label’s founder, but has added a contemporary spin to the tongue-in-cheek looks that shaped the brand’s legacy by tapping into today’s pop iconography. Scott’s social networking skills and connections have contributed to the brand’s success, as have his sensibility for art and music, his ability to speak to a younger generation and his relationship with celebrities, ranging from Rihanna and Katy Perry to Miley Cyrus.