RDM Group, the owner of Florentia Village brand, plans to open another five luxury designer outlets in China within the next three years for the Italian company to tap the growing purchasing power of Chinese consumers.
The company, which unveiled its second China outlet in Shanghai yesterday, will open stores in Guangzhou, Chengdu, Wuhan, Chongqing and Qingdao by 2017, according to RDM senior executives.
“Total investment for the seven projects, including the first one opened in 2011 in Wuqing, Tianjin, will be around US$1 billion,” said Maurizio Lupi, managing director of Florentia Village and RDM Asia.
“We hope to reap an annual turnover of between 15 billion and 20 billion yuan (US$2.4 billion and US$3.2 billion) from our China outlets after 2017 when all of them are operating.”
Its 1.5 billion yuan Florentia Village — Shanghai Luxury Designer Outlet, located between Pudong International Airport and Shanghai Disneyland, comprises two phases covering a total of 90,000 square meters.
The first batch of 75 stores opened yesterday at the outlet, which will eventually house around 200 Italian, European, American and Chinese luxury and premium fashion brands such as Armani, Bally, Ferragamo, Givenchy and Tod’s. Discounts of up to 70 percent will be offered throughout the year, the company said. By 2017, RDM expects 60 percent of its global turnover to come from the China market where demand for luxury and premium goods remains robust.
RDM, which now has seven outlets in Italy and China, aims to expand the number to 15 globally by 2017.