Updated 10:35 a.m. ET April 19
Thanks to a minority investment from Kering, Chinese fashion brand Icicle plans to build out its nascent leather goods, accessories and eyewear categories, and ramp up international expansion.
“We really believe that we can support them in that journey, and that we can also learn a lot from them,” said Joel Hazan, chief strategy and development officer at Kering. “They’ve been able to create a value proposition in China that’s proving more successful than many of what the Western brands have been doing in the recent years, so we’re happy to learn from them.”
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Luca de Meo, chief executive officer of Kering, announced the deal at the luxury group’s Capital Markets Day in Florence, noting that transaction falls under House of Wonders, a new Kering entity investing in emerging brands in adjacent categories and various geographies.
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Financial terms were not disclosed.
But in an exclusive interview with WWD, Hazan lauded Icicle for its “exceptional craftsmanship and exceptional local relevance. They somehow cracked the code of selling to the Chinese consumer. Their performance in China is exceptional.”
Founded in 1997 in Shanghai by Ye Shouzeng and his wife Shawna Tao, Icicle specializes in women’s and men’s ready-to-wear and operates more than 200 stores in China, including flagship locations in Beijing and Shanghai.
In 2018, Ye and Tao Shouzeng acquired Carven to create ICCF Group, the entity into which House of Wonders invested.
Hazan clarified that ICCF holds only a 10 percent stake in Carven, and that Paris-based fashion house is not implicated in House of Wonders’ development plan.
Indeed, “one of the things that House of Wonders is going to try to prove is that there is an opportunity for luxury brands emerging from non-historical, non-legacy luxury markets to take a space,” he said. “There’s a world of brands out there that are not from Paris and Milan.”
In 2013, Kering acquired a majority stake in jeweler Qeelin, its first acquisition in China.
Louise Xu, executive president of ICCF Group and Icicle, said 90 percent of its business stems from rtw and it spies a “very huge potential” for bags, shoes and accessories.
Icicle has operated a boutique in Paris since 2019, and it is considering London and Milan for future locations, she said in an interview over Teams.
Part of Icicle’s secret sauce is its vertical supply chain, allowing 90 percent of its products to be produced in its own facilities.
In addition, its “creation center” operates between Paris and Shanghai “creating a dialog between Oriental aesthetics and European fashion sensibilities,” according to Xu, who flagged consistent double-digit growth the past few years.
She also trumpeted Icicle’s insights into the shifting behavior of Chinese consumers, pointing to the success of its new ICCF Garden Store in Shanghai, which includes stand-alone stores for Icicle men’s, Icicle women’s and Carven, plus a fine-dining restaurant and café to complete the lifestyle-driven project.
Hazan said House of Wonders plans to invest mainly in companies with revenues between 10 million and 100 million euros.
“We’re not providing just capital. We are providing the scale effects that a luxury group has, adapted to smaller ones: We can help with real estate, we can help with marketing,” he said.
On the other side, “we will probably never make an investment in a company where we don’t think we have something to learn… We want to make really all those investment and partnership reciprocal.”
The executive is also leading some of Kering’s other diversification initiatives under House of Wonders, including in wellness and longevity, which de Meo described as falling under the umbrella of “Next Luxury.”
“Through House of Wonders, Kering aims to build long-term value through a disciplined, partnership-driven approach, engaging with brands defined by a distinctive vision, deep authenticity and global resonance potential,” the company said.
De Meo characterized the Icicle partnership as part of broader efforts in China.
“At Kering, and particularly for Gucci, our priority is to rebuild strong, lasting resonance with Chinese audiences through dedicated narratives, local talent and fully integrated activations tailored to this market,” he told WWD. “China will remain central to the future of luxury, and we are investing accordingly: with responsibility, ambition and a long-term perspective.”
In addition, through initiatives such as Kering CRAFT, a creative residency partnership with Shanghai Fashion Week, “we are building long-term cultural bridges: supporting the next generation of Chinese creatives while deepening our understanding of a market that will remain central to the future of luxury,” de Meo said.
“When I met Ye Shouzeng and Shawna Tao in Shanghai, I was deeply impressed by the strength and singularity of Icicle. Our strategic partnership reflects a shared commitment to excellence,” he added.