Marc Jacobs Adds I.T Group as Greater China Expansion Partner

By Rebecca Stone

LVMH Moët Hennessy Louis Vuitton completed a roughly $925 million sale of Marc Jacobs to WHP Global and G-III Apparel Group on Sept. 1. The new owners have partnered with I.T Group to expand the brand across Greater China.

The announced expansion covers new stand-alone boutiques, shop-in-shop locations, digital commerce and wholesale distribution, building on Marc Jacobs’ existing retail footprint. The announcement did not disclose opening targets, capital commitments, product volumes, revenue forecasts or a market-by-market rollout schedule.

What does I.T Group add?

The announcement describes I.T Group as a leading omnichannel fashion retailer founded in Hong Kong in 1988. It operates more than 280 points of sale and a growing e-commerce platform across Greater China. Its retail concepts include I.T, i.t and EXI.T, while its digital platform features more than 400 designer, contemporary and streetwear labels.

The announcement cites a brand-development record spanning A Bathing Ape, Acne Studios, Carhartt WIP, Commercial des Garçons, Off-White, Palm Angels and Study. I.T Group positions its platform for long-term growth across mainland China, Hong Kong, Macao and Taiwan.

Sham Car Wai, founder and chairman of I.T Group, said: “With our omnichannel platform, deep local market knowledge and nearly four decades of experience building international fashion brands in the region, we see significant potential to accelerate the brand’s growth through retail expansion and digital commerce, bringing Marc Jacobs to more consumers across Greater China.”

He also called Marc Jacobs’ creative identity distinctive and its appeal in Greater China strong. That is a brand claim, not a disclosed consumer metric.

How is the ownership split changing execution?

Under the completed transaction, WHP and G-III each own 50 percent of Marc Jacobs. G-III also bought the brand’s operating business, focused in the United States and Europe, which includes more than 100 stores. WHP leads the joint venture that holds the brand, while G-III supports that venture and runs wholesale, retail and e-commerce.

Morris Goldfarb, G-III chairman and chief executive officer, said: “We see a strong future for Marc Jacobs and are focused on building the business for the long terms. Our approaches to look at each market individually and put the right capabilities in place to drive the business.”

He also said I.T Group’s track record in “Great China” supports the partners’ confidence in what they can accomplish together.

Why did Marc Jacobs change its leadership?

The China announcement followed a leadership reset disclosed the previous week. Emily George became global president on Nov. 1. Eric Marechalle, Marc Jacobs’ chief executive officer for nine years, was due to exit at the end of that month. Marc Jacobs remains creative director and continues to lead the brand’s vision as the business adapts to its new ownership structure.

Yehuda Shmidman, WHP Global founder, chairman and chief executive officer, said the company had refocused on executing Marc Jacobs’ global growth strategy. He called the brand’s creative identity distinctive, its global recognition strong and the I.T partnership an important milestone with significant expansion opportunities. He described the agreement as the start of a longer expansion effort.

What should sourcing and channel teams watch?

The transaction puts retail scale and local market knowledge behind a recently reorganized management team. For sourcing and channel teams, the missing variables are concrete: boutique opening dates, shop-in-shop partners, inventory commitments, wholesale allocations, digital launch timing and sales conversion. The next proof point will be whether I.T’s four-market platform can translate the announced expansion into sustained store, online and wholesale results.