China’s Fosun has acquired a majority stake in Austria’s Wolford. Fosun invests in the global fashion and consumer goods industry. Wolford, based in Austria, makes tights, bodysuits, and innerwear. The capital increase guaranteed by Fosun will sustainably strengthen the equity base of Wolford, enabling the brand to expand its online business and redesign its market presence.

As China continues to drive the global luxury market, Wolford can leverage Fosun’s resources to grow and strengthen its high luxury positioning while maintaining its exceptional high quality of production in Europe.

Wolford has 16 subsidiaries and markets its products in approximately 60 countries through over 270 own and partner-operated retail stores, 3,000 trading partners, and online. It reported a loss before interest and tax of 7.4 million dollars for the six months through October, an improvement of 21 per cent on the previous year’s first half.

Chinese firms are buying famous brands in the hope of upgrading their image. Buying famous foreign brands is seen as helping them build up their own brands, and proper management and deployment of sales channels may help them gain more popularity with domestic consumers. Chinese e-commerce players are also moving quickly into western markets.