PARIS – After expanding into India last year, Sandro, Maje and Claudie Pierlot parent company SMCP has signed new distribution partnerships in the Philippines and Indonesia.
Expansion into the new territories comes as the French conglomerate seeks to steady itself after consecutive quarters of flat or declining sales.
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“These two key countries in the APAC region are key drivers of development and influence, with strong economic growth and a flourishing middle class,” the company said in a statement.
The deals are with luxury and ready-to-wear retailers SSI Group in the Philippines and Map Group in Indonesia.
In the Philippines, SSI operates 570 stores throughout the country on behalf of 90 brands, including Cartier, Hermès, Givenchy and Zara.
Indonesia’s Map Group operates nearly 3,000 shops including Loewe, Max Mara, Lacoste, as well as Zara, across 80 cities in the country.
The move signals the group’s continuing efforts to revise its fortunes in Asia-Pacific. Sales in the region fell 19.9 percent in the latest round of results released in July, following the closure of 30 stores in China.
SMCP chief executive officer Isabelle Guichot revealed in April a turnaround plan for the embattled brands that will see it shutter about 100 stores in China, reducing its retail footprint between 15 and 20 percent in the country this year.
She emphasized that SMCP would refocus on more dynamic markets in Southeast Asia to boost the company’s prospects.
“This confirms the group’s ambition to spread its brand into new growth territories with strong growth potential,” the company added in a statement.
SMCP has already opened the first store for its flagship Sandro brand in Jakarta’s Plaza Senayan.
The rollout in the Philippines will see it open four shops in Manila’s Greenbelt and Central Square shopping areas, as well as three corners in Rustan’s Makati department stores this year.
The company has a five-year plan to open existing stores in prestigious shopping malls in both countries, it said.
The news comes a day after the London Court of Appeals rejected the right of appeal by Dynamic Treasure Group (DTG), the holding company of Chenran Qiu. She is the daughter of Yafu Qiu, who is chairman of SMCP’s former owner, Shandong Ruyi. A decision by the English High Court in July invalidated the 2021 sale of 15.9 percent of the company for 1 euro to DTG.
SMCP trustee Glas can now request the forced restitution of the shares in Singapore, where they are held. Glas has indicated it will sell its shares, which would open up SMCP to a potential takeover bid.
Glas is the trustee for creditors including funds BlackRock, Carlyle, Anchorage, Boussard and Gavaudan, and has previously announced its intention to sell its stake, and launched a potential sale plan back in March.
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