By Casey Hall
SHANGHAI (Reuters) -OTB Group, the parent of Italian denim specialist Diesel and owner of luxury brands including Maison Margiela, is positive on the Chinese market and is investing more in it, founder and chairman Renzo Rosso said.
Rosso, in China to mark Diesel’s 20 years in that market, said he is continuing to invest in China in a down market, rejigging OTB’s retail footprint by closing some stores, but continuing to open in new and better locations.
“I am positive. I think if the market is going like this, it can be an opportunity because we can have a better space available for a better price that wasn’t available before,” he said. “My vision right now is to invest in the country. I believe in the country; it is so big, so important.”
Rosso was speaking to Reuters on Thursday ahead of a dinner for around 100 people with a view of Shanghai’s famous skyline.
“This year, we are doing well compared with the market. Everybody is minus, we are a little plus, so we are quite happy,” he added.
China’s consumer appetite has been in focus for global brands, especially in the high-end and luxury sectors which count on Chinese nationals for around one-third of global purchases.
In recent years, consumer demand in the world’s second-largest economy has been dampened by a prolonged property market crisis and concerns about job security and wage growth in an economy buffeted by factors including slowing growth and a trade war with the U.S.
In an indication of how vital China is to luxury, reports from industry bellwether LVMH earlier this week that Chinese demand is improving sparked an $80 billion stock market rally for the sector.
OTB, or Only the Brave, is also home to luxury brand Jil Sander, and as a group reported turnover of 1.8 billion euros ($2.11 billion) in 2024, a fall of 4.4%.
In 2024, OTB postponed plans for a public listing originally slated for this year, saying it would probably delay it until 2026. Rosso remains in no hurry to go public.
“First of all, I don’t need the money, I am cash positive,” he said. “There’s no rush, it can be one year, two years, I don’t care. If I feel good, then yes.”
($1 = 0.8551 euros)
(Reporting by Casey Hall; Editing by Muralikumar Anantharaman)
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