Chinese conglomerate Fosun is to buy a controlling stake in Austrian lingerie brand Wolford.
Fosun is reportedly set to pay €33 million for a 50.9% stake as well as an additional €22 million as part of a capital increase.
The deal marks the first time a Chinese company has acquired a Western lingerie brand.
Wolford CEO Axel Dreher said: “We welcome the entry of a financially strong core shareholder which is experienced in the luxury sector and will enhance our access to Asian markets.”
Wolford CFO Brigitte Kurz added: “This confirms the reputation of our brand and its growth opportunities. The capital increase will strengthen our long-term capital base and our liquidity. This enables us to accelerate the development of our promising online business and the redesigning of our market appearance.”
Jing Daily, a much-respected Moodie Davitt content partner, noted that luxury lingerie brands have become more bullish on China. Last spring, La Perla hired Liu Wen (刘雯) to be its first Chinese brand ambassador and opened four flagship stores in China. Victoria’s Secret also joined the fray, opening its first flagship store in Shanghai last year. Wolford opened a flagship store in Shanghai in 2013.
In 2016, Euromonitor projected that the Chinese women’s underwear market will have a retail value of US$25 billion by 2017 – double that of the USA. By 2020, it is estimated to grow to US$33 billion.
