Luxury brands may be experiencing sales volatility in China, but affordable luxury companies are experiencing strong growth.
Parisian affordable luxury brand Groupe SMCP is seeing strong demand and little signs of slowing.
SMCP CEO Daniel Lalonde told Bloomberg that “Chinese consumers love the brands – they like the fit.”
Groupe SMCP’s Greater China same store sales grew in the high double digits in 2014 and has carried over to the beginning of 2015.
While Hong Kong retail has been hurting, in particular in luxury watch and jewelry, Groupe SMCP’s Hong Kong store sales have not been affected. The company has eight stores in Hong Kong and will open five more in 2015.
Private equity firm KKR owns 70 percent of SMCP, which is made up of the Claudie Pierlot, Maje and Sandro brands.
image credit: scmp