Chinese companies are making acquisitions and spreading out. In 2016, textile producer Shandong Ruyi bought majority stake in SMCP, the French group that owns affordable luxury brands Sandro, Maje and Claudie Pierlot. Shandong has also acquired British trench coat maker Aquascutum and a minority stake in St. John by Fosun.

Chinese fashion and apparel company Shenzhen Ellassay Fashion acquired French brand Iro in March. It has also acquired a majority stake in New York-based Chinese-American designer Vivienne Tam’s brand. The company plans to open the first Vivienne Tam store in mainland China later this year, with more to come in 2018.

Vivienne Tam’s sales are currently concentrated in Japan, where she has over 14 shops, and Hong Kong, as well as the Philippines, Thailand and Singapore. She retains sole ownership of her company outside of China.

Shenzhen Ellassay Fashion also owns the Chinese mid-market brand Ellassay as well as the rights to German women’s wear brand Laurèl and the rights to American apparel brand Ed Hardy. In fiscal 2016, revenue for the group grew 36 per cent while net income grew 24 per cent. These acquisitions surely reflect China is transforming itself from an export-dependent economy to a consumption-driven one.