Sandro, a brand owned by fashion group SMCP, has announced its plans to expand in China and ramp up its marketing efforts. SMCP, which also owns popular brands like Maje and Claudie Pierlot, has been steadily growing its store network, with over 80 new store openings each year. However, due to the impact of the COVID-19 pandemic, SMCP has decided to halt store openings in other markets and shift its focus to China.

China has become a vital market for luxury fashion brands, especially with travel restrictions limiting Chinese consumers’ ability to shop abroad. To seize this opportunity, SMCP plans to open approximately 40 new stores annually between 2021 and 2025. Half of these new store openings will be in China, showcasing the company’s dedication to serving the Chinese market.

SMCP operates in the affordable luxury segment, offering products in the price range of €250 to €400 ($295 to $473). Like many retailers, SMCP has faced challenges during the pandemic, with sales dropping by 10.6% in the third quarter compared to the previous year. To mitigate the impact of the crisis, SMCP secured a government-guaranteed loan worth €140 million earlier this year.

To adapt to the changing retail landscape, SMCP plans to invest more in boosting online sales. Additionally, each of its brands will double their marketing spending starting from 2021. The company aims to achieve 50% of its growth from the Asia-Pacific region by 2025, with the region currently contributing a quarter of its revenue.

By refocusing its efforts on China and allocating resources towards marketing and online sales, SMCP aims to position itself for success in a post-pandemic world. The company acknowledges the significance of the Chinese market and intends to capitalize on the increasing demand for high-end fashion in the region. With its strong brand portfolio and strategic initiatives, SMCP is well-prepared to thrive in the ever-evolving fashion industry.

To learn more about SMCP’s expansion plans in China, you can visit their official website here. For insights on China’s luxury fashion market, you can refer to this article here.