The CICPE is the only national level expo in China focusing on consumer goods and the largest consumer expo in the Asia-Pacific region. As a global innovation-driven consumer group, Fosun once again participates in the expo. Thanks to the globalization and technology innovation capabilities that Fosun has accumulated over years, as well as leveraging its twin-driver of profound industry operations and industrial investment, Fosun’s various business segments have realized endogenous growth and continued to gain favors from global buyers and consumers.
Fosun’s Global Presence Fosters the Strong Recovery of Fashion, Culture and Tourism Businessex
At this year’s CICPE, the iconic “mother and daughter logo” of Lanvin, the oldest operating French couture house, has been caught in the limelight of the fashion exhibition area.
Lanvin is the flagship brand of Lanvin Group, a global fashion and luxury group under Fosun. Despite the severe impact of the pandemic on the global economy in 2021, Lanvin still achieved outstanding results. Its total global sales increased by 108% year-on-year, while e-commerce sales increased by 415% year-on-year.
Benefitting from the empowerment of Fosun’s ecosystem, Lanvin Group has steadily pushed forward global development in recent years and has successfully implemented its innovative strategy. According to Lanvin Group’s 2021 results announced on 12 July 2022it has achieved record growth in 2021, with a pro forma revenue of EUR339 million in 2021, up 52% compared to its revenue in 2020.
In addition to Lanvin, Lanvin Group’s brands include Austrian skinwear specialist Wolford, Italian luxury shoemaker Sergio Rossi, iconic American womenswear brand St. John Knits, and high-end Italian menswear maker Caruso. On 25 July, the five major fashion and luxury brands were showcased at the CICPE, demonstrating Fosun’s global achievements in high-end fashion.
Consumer-related services and travel and outdoor are the key sections in the expo. Fosun brought together global FOLIDAY brands under Fosun Tourism Group, including Atlantis Sanya, Club Med, Thomas CookFOLIDAY Town, from resorts and hotels, tourist destinations, children’s playing and learning, urban skiing, cultural performances, and tourism retail, presenting a variety of global tourism products, and through online and offline activities reigniting the enthusiasm of domestic and overseas consumers for tourism consumption.
On 18 July, Fosun Tourism announced results forecast for the first half of 2022, reaping continuous returns from its steady global deployment established during the pandemic.
According to the results forecast, for the first half of 2022, Fosun Tourism’s business volume is expected to increase by approximately 198.0% year-on-year, Club Med continued to take a lead in the recovery of the global resort industry, with its business volume soaring by approximately 336.0% compared to the first half of 2021, representing a recovery to 90.2% of the same period of 2019; the capacity of the resorts increased by approximately 122.4% as compared to that of the first half of 2021, accounting for approximately 87.4% of that of the same period of 2019.
Domestically, in the face of the continued impact of the pandemic, the business volume of Atlantis Sanya in the first half of 2022 is expected to record approximately RMB487 million. For the first two months of 2022, it recorded a growth in business volume of approximately 44.3% period-on-period and an EBITDA margin of approximately 57.8%. In addition, resorts like Club Med Changbaishan and Thousand Island Club Med Joyview have opened this year. Thousand Island Club Med Joyview, which commenced trial operation on 15 June, achieved a gross merchandise transaction (GMV) of RMB10 million within four hours after the pre-sale began on 11 May, and its GMV exceeded RMB40 million in 15 days after sales started.
In addition, Thomas Cook, a century-old travel agency brand under Fosun Tourism, has actively seized opportunities created by the recovery of the global tourism industry and has achieved significant progress. In the first quarter of 2022, the UK business volume of Thomas Cook achieved a year-on-year growth of more than eight-fold. On 18 July, Thomas Cook held its 181st anniversary celebration in Sanya. At the celebration, Thomas Cook signed a strategic cooperation agreement with six high-end hotel groups, Poly, Wanda, Suning Hotel, Delonix, Hoshino Resorts, and Minor, providing Thomas Cook users with more than 320 hotel resources covering 18 provinces and cities across the country.
“In the post-pandemic era, people’s desire to travel has never changed, and it has only become stronger.” Qian Jiannong, Chairman and CEO of Fosun Tourism, said that since the beginning of this year, overseas pandemic prevention and control have been normalized, and the international tourism market is recovering rapidly. Various overseas businesses of Fosun Tourism recorded strong growth compared to the same period of last year. In terms of the domestic market, the summer travel peak season began in July, and the occupancy rate of various resorts continued to rise.
Innovative Mindset Has Deeply Integrated into Various Business Segments
Product launch is the highlight of this year’s CICPE. At the CICPE official product launch on 27 July, seven brands under Fosun unveiled their new products, spanning the watch industry, beauty industry, jewelry industry, fashion industry, cultural and creative industry and others, interpreting Fosun’s happy lifestyle from multiple perspectives. Among them, YOGAN, the first skin care brand self-developed and incubated by Yuyuan Inc., the flagship platform of Fosun’s Happiness segment, has attracted considerable attention from the industry.
YOGAN was founded by Fosun Cosmetics Innovation Center, which was established by Yuyuan Inc. in January 2021. From raw material experiment to technical patent application, formula research and development efficacy demonstration, Fosun Cosmetics Innovation Center has built a new brand in one and a half years. Its patented ingredient, Yohealix-4R ™, has been proven at the cellular level to have excellent soothing and repairing properties for sensitive skin.
Yuyuan Inc. has 18 time-honored brands in Chinainheriting many valuable resources from the history of Shanghai. These brands innovate continuously, leading China-Chic consumption with oriental aesthetics. In recent years, thanks to the empowerment of Fosun’s ecosystem, Laomiao, Yayi, Jinhui Liquor, Tuopai Shede, Shanghai Watch, Seagull Watch and other time-honored Chinese brands have undergone brand revitalization and are loved by a new generation of consumers. These brands have shown their unique charm to global consumers at the two CICPE and have built up strength to expand into global markets.
According to the data, in the first quarter of this year, Yuyuan Inc. continued to expand the business channels of its jewelry & fashion segment and continued to improve its product competitiveness. The sales volume of the Guyun Gold series products reached a new high, with a year-on-year increase of over 100%. In the first quarter of 2022, Yuyuan jewelry & fashion chain business opened 140 net stores, which brings the total number to 4,121 stores, consolidating its leading position in store expansion in the industry.
In fact, the innovative mindset has been deeply integrated into Fosun’s various business segments. In 2021, the Group’s total investment in technology and innovation reached RMB8.9 billion. Its long-term investment in technology and innovation has also continued to reap rewards.
On 13 June, Henlius, the biopharmaceutical platform of Fosun Pharma, announced that it has entered into a license and supply agreement with Organon LLC (“Organon”). According to the agreement, the multinational pharmaceutical company, Organon will acquire exclusive global commercialization of Henlius’ independently developed HLX11 (anti-HER2 domain II humanized monoclonal antibody injection), a biosimilar of pertuzumab, and HLX14 (recombinant anti-RANKL human monoclonal antibody injection ), a biosimilar of Denosumab globally except for Chinacovering major markets such as the United Statesthe European Union, Japan, as well as a number of emerging markets. Henlius will receive potential revenue of US $ 541 million from the transaction, including a US $ 73 million upfront fee on the transaction.
On 27 June, Fosun Pharma and Hainan Boao Lecheng International Medical Tourism Pilot Zone entered into an agreement in Hainan, where the CICPE is taking place. The two parties will translate scientific researches of innovative drugs and medical devices, diagnostic technologies and products into applications and conduct pilot trials based on Lecheng’s real-world data, introduce overseas drugs and medical devices for urgent clinical use, establish regional cooperation with medical institutions , and strengthen the training of academic talents.
Hainan Mining, another company under Fosun that is deeply engaged in the mining industry in Hainan, has also continuously achieved innovative breakthroughs with its globalization strategy. In addition to Australiaits subsidiary, Roc Oil, has also been expanding with new projects in China and Malaysia in recent years. Moreover, Hainan Mining has recently made new moves in Hainan. On 1 July, it was announced that the 20,000-ton battery-grade lithium hydroxide project invested by Hainan Mining will be built in Yangpu Economic Development Zone in Danzhou. The construction of this project implies that Hainan Mining is taking a key step in the field of new energy.
As Fosun’s comprehensive platform for science, industry and trade in HainanFosun Trade has been actively engaged in the import and export of medical products and obtained the qualification of a pilot platform for parallel import of automobiles in Hainan Province after it established in the Haikou Comprehensive Bonded Zone in July 2020. In the past two years, Fosun Trade has established a foothold in Hainan and is creating business opportunities globally. To date, it has more than 4,200 customers and partners, covering six continents. Combining the advantages of Hainan Free Trade Port policy and Fosun’s global ecosystem network, Fosun will continue to promote the collaborative development with Hainan Free Trade Port.
Xu Xiaoliang, Co-CEO of Fosun International, said that after 30 years of development, Fosun has grown into one of the few domestic enterprises that is equipped with global operations, investment capabilities, and accumulated profound technology and innovation capabilities. “In the future, we will continue to explore the growth potential through the twin-driver of profound industry operations and industrial investment.”
Founded in 1992, Fosun is a global innovation-driven consumer group dedicated to providing high-quality products and services for families around the world in Health, Happiness, Wealth, and Intelligent Manufacturing segments. In 2007, Fosun International Limited was listed on the main board of the Hong Kong Stock Exchange (stock code: 00656.HK). In 2021, Fosun International’s total revenue was RMB161.3 billion and total assets amounted to RMB806.4 billion. Fosun International ranks No. 589 on the 2022 Forbes Global 2000 List, with a MSCI ESG rating of AA.