The Openings in Shanghai, Miami, and Milan are Set to Move Forward Despite Global Luxury Market Slowdown
Famed footwear and accessories brand Manolo Blahnik has shared plans to open new stores in Shanghai, Miami, and Milan, despite reporting a decrease in sales and profits for fiscal 2023 owing to a decrease in luxury goods demand.
The London-based brand witnessed a 10-perecnt downfall in sales, which equated to 106.5 million euros. Before tax profits also experienced a 30 percent drop, decreasing to 15.4 euros in the year ending on Dec. 31, 2023.
The private company stated that despite the stumbling demand for luxury goods, their performance matched their expectations. It also reported a “strong” operating profit equivalent to 15 percent of its revenue. Over the given period, it has made considerable investments in supply chain and infrastructure.
In the upcoming days, these results will be released on Companies House, the register for businesses based in the U.K.
Manolo Blahnik has predicted a “return of customer confidence in 2025,” which aligns with its plans to expand into new markets across North America, Europe, and China.
CEO Kristina Blahnik stated,
As expected, in 2023 our performance re-balanced off the back of an extraordinary year of sales and consumer demand in 2022, and in light of the challenging macro-economic and geopolitical environment. Against this backdrop, we are pleased to still be reporting a positive performance in our second-best year ever, in line with our business plan.”
She continues to anticipate a “continued readjustment to pre-COVID demand” during 2024, and revealed that the company has utilized this transition period for restructuring.
Manolo Blahnik has been making crucial improvements to its business-to-business models as well as its direct-to-consumer models. It is looking to concentrate more on its retail and own channels, in addition to strengthening its wholesale network.
Various behind-the-scenes work is expected to orchestrate a strong position for the business once consumer confidence restores. It is expected to be a significant year for the brand, with plans to start operations in China, starting with a store in Shanghai. Recently, the brand established a Wholly Foreign Owned Enterprise (WFOE) in China, securing rights to use its brand name after legal battles of more than two decades.
In 2022, following a 22-year long legal feud, the Supreme People’s Court of China instructed the invalidation of an illegal Manolo Blahnik trademark registered by a native businessman in 2000. The company is also in the process of setting up operations in Hong Kong, in collaboration with Bluebell Group for the opening of multiple stores in the region.
The first boutique was launched in Hong Kong’s Lee Gardens shopping center on March 22 with plans for a second one in the Pacific Place shopping center in the last quarter of 2024. There is a third store in the pipeline, but the location is yet to be confirmed. Manolo Blahnik and Bluebell Group already have partnerships in other Asian markets such as Malaysia, Taiwan, Japan, and Singapore.
Even though Asia is the current focus, the company has a vision to expand into other markets too. It has plans to launch flagships in Miami Design District and Milan in early 2025, where it doesn’t yet have a direct retail presence.
Last September, Manolo Blahnik moved its global headquarters from Marylebone to a historical Georgian building in London’s Mayfair, incorporating more than 14,500 gross square feet for office, showroom, and meeting spaces.
The company has also enhanced its ecommerce portal and improved its conversion metrics. It has further enriched its digital archives with a new, virtual space, called “The Manolo Blahnik Archives, The Craft,” designed to spotlight the process from design to construction, giving unparalleled insights into the art of shoemaking.