Italian denim icon Diesel and its parent company, OTB Group, are optimistic about the Chinese market and planning to increase their investments, according to founder and chairman Renzo Rosso.
Rosso, who was visiting China to mark Diesel’s 20th anniversary in the market, revealed that he continues to invest in the country despite a downward trend. As part of the strategic move, the company is reevaluating its retail footprint by closing some stores and opening new ones at better locations.
“I am positive. I think if the market is going like this, it can be an opportunity because we can have a better space available for a better price that wasn’t available before,” Rosso stated. “My vision right now is to invest in the country. I believe in the country; it is so big, so important.”
While enjoying dinner with a panoramic view of Shanghai’s famous skyline, Rosso expressed his satisfaction with the company’s performance. “This year, we are doing well compared to the market. Everybody is minus, we are a little plus, so we are quite happy,” he said.
Despite concerns about a long-term property market crisis and fears over job security and wage growth, China’s consumer demand remains a focal point for global brands. Luxury and high-end sectors particularly rely on Chinese nationals, who account for approximately one-third of global purchases.
Rosso’s optimism reflects the importance of China to the luxury market. Recent signs of improving Chinese demand have led to a significant market rally for the sector.
OTB Group, also known as Only the Brave, houses luxury brand Jil Sander among others. In 2024, the group reported a total turnover of 1.8 billion euros ($2.11 billion), marking a dip of 4.4%.
Despite postponing plans for a public listing that was originally scheduled for this year until 2026, Rosso doesn’t seem to be in a hurry. “First of all, I don’t need the money, I am cash positive,” he said. “There’s no rush, it can be one year, two years, I don’t care. If I feel good, then yes.”
Why is OTB Group optimistic about the Chinese market?
OTB Group sees the current state of the Chinese market as an opportunity to secure better retail spaces at a more affordable price, given the downward market trend.
What is the significance of the Chinese consumer market to global brands?
Chinese nationals account for approximately one-third of global purchases, making China’s consumer demand highly crucial for global brands, especially those in the luxury and high-end sectors.
What are OTB Group’s future plans regarding a public listing?
Rosso, the founder and chairman of OTB Group, has postponed plans for a public listing and stated that there is no rush. It could happen in one year or two years, depending on when he feels the time is right.
