Florentia Village to expand in China market

Florentia Village, a luxury outlet operator based in Italy, is enhancing its footprint in China through strategic partnerships, digital transformation and physical expansion, according to Jacopo De Vena, managing director of Florentia Village and RDM Asia.

The company recently signed a three-year collaboration agreement with Sichuan Fine Arts Institute in Chongqing, underscoring its commitment to integrating art and culture into its outlets.

"We aim to create an incubator that promotes art, music, design and architecture, showcasing Italian and Chinese influences," said De Vena while participating in the third Chongqing International Light Art Festival earlier this month.

As a core luxury retailer, Florentia Village is increasingly embracing Chinese brands, which are gaining in significance alongside international luxury labels.

Following partnerships with leading companies like Anta Group, these outlets maintain a 60-40 or 70-30 ratio between international and domestic brands.

De Vena said that the company's overall performance has remained robust despite a slowdown in the retail sector.

"Luxury brands continued to grow in 2024, and sports and affordable luxury are emerging as new trends," he said.

Brands such as Arc'teryx, Descente, lululemon and Li-Ning, are becoming pivotal players in the brand mix.

To capture the sportswear boom, Florentia Village organizes annual events such as "Sports Week", combining activities with promotions tailored to sports brands, he said.

Florentia Village is also expanding its physical presence. The company recently completed the third phase of its outlet in Chengdu, Sichuan province, and is set to expand in locations including Chongqing, Shanghai, Wuhan of Hubei province and Beijing.

Construction to expand its facilities in Chongqing will commence after the Spring Festival holiday, he added.

In total, the company operates seven outlets across China.

The country's digitized retail environment is reshaping Florentia Village's business model.

"Digitalization is the present and future," said De Vena, noting the launch of the company's "All in One" WeChat mini-program three years ago.

The platform links offline stores with online sales, allowing customers to book services and shop directly through WeChat. The company also leverages livestreaming on WeChat and Douyin while developing a customer data platform to enhance marketing automation.