At 22:30 on 15 December, Beijing time, Lanvin Group, a global luxury fashion group under Fosun, was listed on the New York Stock Exchange with the stock code “LANV”. On the morning of 15 December, Club Med under Fosun Tourism Group opened Club Med Kiroro Peak in Hokkaido, Japan, which is the fifth resort newly opened by Club Med this year.
Market analysts believe that Fosun is actively making strategic focus in the face of the constant changes in the macro environment. On 15 December, Fosun held the Fosun’s 30th Anniversary ONE FOSUN Family Members’ Carnival. At the internal event, Guo Guangchang, Chairman of Fosun International, shared several memorable moments in the 30 years since Fosun was founded in 1992 and revealed the future development direction of Fosun: Fosun will reinforce its positioning as a “family-oriented consumer group,” focus on its core business strategically around the consumption needs of global families, and strengthen the two core growth engines of globalization and innovation.
In Guo Guangchang’s speech on 15 December, he shared the moment of the successful acquisition of Club Med in 2015. “The acquisition of Club Med is an important milestone in Fosun’s globalization history, and Club Med is our first brand with global significance.” He said, “I believe that the significance of Club Med and Fosun Tourism Group is far beyond resorts, it represents a new way of life for families.”
Fosun has been operating in the industry profoundly for nearly eight years; Club Med has made remarkable progress in the global market, especially in China and the Asia-Pacific region, with customers from 35 countries and regions. It has also successfully created hot-selling products in China such as Club Med Joyview. In the first three quarters of 2022, against the recurring epidemics, the business volume of Club Med reached RMB9.135 billion, representing a year-on-year increase of more than 145.7%, while in the peak winter travel season from Christmas this year to February 2023, the bookings of overseas resorts have increased significantly compared with the same period last year, and many resort rooms were sold out during the Chinese New Year. Moreover, with the adjusted epidemic prevention and control measures in mainland China, Club Med’s nine resorts in China have also seen a significant increase in bookings and inquiries.
Club Med is just one of the many global projects that Fosun has successfully operated. As of now, Fosun has established profound business presence in more than 30 countries and regions around the world and has more than 100,000 employees worldwide. Guo Guangchang said, “As a private enterprise founded in Shanghai and developed in China, I am proud to say we have one of the best globalization capabilities. Now that the world is facing many challenges, Fosun’s globalization capabilities are even more valuable.” Guo Guangchang also emphasized the importance of innovation in his speech. Based on previous interim reports and annual reports disclosed by Fosun International, it is evident that Fosun attaches great importance to innovation. In 2021, Fosun invested RMB8.9 billion in technology and innovation. In the first half of 2022, despite the pressure on overall performance, Fosun still invested RMB4.6 billion in technology and innovation, representing a year-on-year increase of 21%.
The technological innovation capabilities that Fosun accumulated the years have also continued to bear fruit. For example, in the health segment, in the first half of this year, new and sub-new products such as Han Li Kang, Han Qu You, and Han Si Zhuang contributed more than 25% of Fosun Pharma’s revenue. Since July this year, Azvudine, China’s first oral medication for COVID-19 jointly developed by Fosun Pharma and Genuine Biotech, has been widely used in the prevention and control of the epidemic in various places. Recently, Fosun Pharma approached a number of online medical platforms for cooperation to improve the accessibility of Azvudine through multiple channels, so as to further meet the needs of home treatment of patients infected with COVID-19.
The COVID-19 mRNA vaccine, COMIRNATY® jointly developed by Fosun and BioNTech, a German biotechnology company, has also made continuous progress. The COMIRNATY® bivalent vaccine which can protect against the Omicron variant has been administered in Hong Kong SAR and Macao SAR on 1 December. Recently, Macao SAR has rolled out the self-funded COVID-19 vaccination service of COMIRNATY® for domestic tourists.
Guo Guangchang said, “BioNTech, a Germany biotechnology company, chose to cooperate with Fosun to develop the COVID-19 mRNA vaccine because they recognize Fosun Pharma’s research and development capabilities and globalization strategy. Globalization and innovation are very important to Fosun, and they are also the core growth engines that we will continue to adhere to.”
In recent years, Fosun continued to reinforce it’s positioning as a “global innovation-driven consumer group” and strengthen its foothold in health, happiness, wealth and other business segments. Guo Guangchang said in his speech that, “we hope to create a better world and create happier lives for families worldwide. We also hope more people can live till the age of 121 with health, happiness and wealth.”
With the strategic focus on the household consumption industry, the profound industry operations became particularly important. In recent years, under the intensive cultivation of Fosun, international brands such as Club Med, Lanvin, and Wolford, as well as time-honored brands including Laomiao, and Songhelou have all radiated new vitality.
Taking Lanvin, one of the oldest luxury brands in France as an example, in the first half of 2022, Lanvin delivered 117% year-on-year global sales growth, and Lanvin Group, its operating parent company, recorded a revenue of EUR202 million, representing a year-on-year increase of 73%. Lanvin Group has also become one of the fastest growing companies in the global luxury goods industry. After listing on the New York Stock Exchange, Lanvin Group will usher a new round of development.
Looking ahead, Guo Guangchang said, “More opportunities are waiting for us. We must refine our products to the best, provide the best service, and offer the best user experience. We hope to create a better world.”