(Sharecast News) – Gucci owner Kering said on Thursday that it was buying a minority stake China’s ICCF, the owner of luxury fashion brand Icicle Fashion Group.
Founded in Shanghai in 1997, Icicle is known for “a design aesthetic rooted in Eastern philosophy, bringing together natural materials, refined craftsmanship and a quiet, contemporary sensibility”.
It specialises in women’s and men’s ready-to-wear and accessories and operates more than 200 stores, including flagship locations in Beijing, Shanghai and Paris.
No financial details were disclosed, but Kering said the strategic partnership brings together ICCF’s “deep understanding” of the Chinese luxury ecosystem and cultural landscape with its own “long-standing expertise in craftsmanship, operations and brand development” in Europe.
It said the investment will support the next phase of development of ICCF’s flagship brand Icicle, including the continued international expansion of the brand, as well as the enrichment of its product offering across new categories.
Kering said the strategic partnership is driven by House of Wonders, a newly-launched initiative designed to selectively support emerging luxury houses with “strong cultural relevance” across markets, categories and geographies.
“Through House of Wonders, Kering aims to build long-term value through a disciplined, partnership-driven approach, engaging with brands defined by a distinctive vision, deep authenticity and global resonance potential,” it said.
Kering shares tumbled on Wednesday after it reported weaker first-quarter results, as continued declines at Gucci overshadowed early signs of progress in its turnaround, with geopolitical disruption in the Middle East adding further pressure.