By HUANG Shan
In a renovated building in Yanlord Canjie retail center in Suzhou on February 19, Jil Sander showed off its S/S 2023 collection. Jil Sander describes itself as the “epitome of modernity and sophistication” with “unconditional dedication to design.”
In December, Maison Margiela launched its pop-up space at Yanlord Cangjie. In Suzhou’s cultural and historical center, the French fashion house took over the same 100-year-old former residence garden. The Yanlord Cangjie area showcases how architects, heritage experts and developers have translated the essence of Suzhou into modern, forward-thinking destination that attract flocks of influencers.
Both Maison Margiela and Jil Sander have the same parent company, OTB.
As a latecomer to the Chinese luxury market, OTB expanded aggressively in 2022. The parent company of brands such as Diesel, Maison Margiela and Marni opened 24 new stores last year. OTB succeeded in making its presence felt in cities like Nanjing, Shenzhen and Wuhan.
All this expansion by a comparative newcomer were somewhat surprising, given that the luxury industry had a slow year in 2022. So slow in fact, according to Yaok Group sales in the Chinese luxury market, decreased for the first time. And doesn’t look like a blip either.
The take of luxury goods distributors fell by 15 percent to 550 billion yuan (US$80 billion), with China losing its position as the fastest growing luxury market. As a result, many luxury companies have paused expansion plans and lowered revenue forecasts for China.
The US is the market leader and is expected to retain that leading position in the personal luxury goods market, generating the highest revenue worldwide, until at least 2025. American nationals make up the leading consumer group when it comes to luxury goods consumption.
In June last year, when Shanghai emerged from a two-month lockdown, OTB opened four stores side by side on Nanjing Road W., Shanghai’s premier shopping street. And these were OTB’s four largest stores worldwide.
The new Amiri, Jil Sander, Maison Margiela and Marni stores are in JC Plaza, a former hotel that has been turned into shopping mall. JC Plaza opened late in 2021. Just across from Plaza 66, Shanghai’s ageing luxury shopping destination, JC Plaza offered the location and square footage OTB was looking for.
While the right physical location can increase a label’s visibility, making it a socially shareable experience is just as important.
In November, Maison Margiela opened a mini cinema and an indoor café to add to the ways customers can engage with the brand. It recreated these experiences in Suzhou at Yanlord Canjie .
By 2022, the company had 80 stores in 16 cities. Despite the impact of Covid, they plan to continue expanding targeting more than 80 stores by 2025, bringing OTB closer to the revenue goal of 3 billion euros (US$3.2 billion, 22 billion yuan) worldwide.
