In a strategic move to rebalance its international presence, SMCP, the French accessible luxury group behind Sandro, Maje, Claudie Pierlot, and Fursac, is set to diversify its global footprint. With a turnover surpassing 1.2 billion euros and an ambitious target of 1.6 billion euros by 2026, the group is navigating shifts in global dynamics and overcoming challenges from its previous Chinese ownership.
Having already witnessed a 20% sales decline in the Asia-Pacific region in 2022, SMCP is redirecting its expansion goals beyond Greater China. Following a partnership for Australia and New Zealand, the group has now joined forces with Reliance Brands to make its mark in the promising Indian market.
Isabelle Guichot, SMCP’s CEO, outlines the strategic rationale, stating, «Significant global changes have prompted us to redefine our Capex and geographical focus, with a reduced emphasis on China and a keen interest in the Middle East, including the United Arab Emirates and Saudi Arabia, as well as the Indian subcontinent.» India, with its growing upper-middle class and a population poised to surpass China’s, emerges as a focal point for luxury brands.
Guichot highlights the evolving dynamics in India, stating, «While traditional aspects remain highly structured, there’s a growing affinity among young Indian generations towards Europe and the West.» The entry strategy involves partnering with Reliance, leveraging their expertise in brand distribution and operations in premium shopping centers.
Home to Sandro and Maje, SMCP plans to open inaugural stores in cities like Mumbai, New Delhi, Bangalore, and Kolkata in 2024, with approximately ten stores anticipated in the next three years. A robust digital strategy will accompany these ventures, catering to the preferences of a tech-savvy clientele.
Guichot emphasizes a global-thinking, locally-adapting approach, tailoring assortments to align with market expectations while maintaining accessible luxury pricing. The expansion into India complements SMCP’s international deployments, aiming to reduce the share of mature French and European operations.
While SMCP continues its global expansion, China remains a significant market. Guichot acknowledges China’s impressive dynamics but underscores the importance of a global presence to offset risks and swiftly adapt to market realities.
