MILAN -Upscale furniture-maker Roche Bobois is fortifying its position in the Chinese market in order to better tap into the growth potential of the world’s second largest economy.
On Friday, the Roche Bobois group said it will acquire a 51 percent interest in Shanghai Rock Castle Furniture, its lucrative franchisee in China. The local franchisee currently directly operates two Roche Bobois stores in Shanghai and one in Beijing, and manages 25 franchised stores located in various mid-sized cities.
Roche Bobois also signed an agreement that allows the group to gradually increase its stake to eventually hold 100 percent of Shanghai Rock Castle Furniture in the medium term. Via its franchisee, Roche Bobois has had a presence in China for the past 20 years.
The transaction is a key step in the international expansion of the Roche Bobois brand, aims to accelerate its growth in the Asian market, and follows the signature of a letter of intent announced in April of this year.
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In 2023, Roche Bobois’ net profit was 31.3 million euros, the same as in 2022.
The group said that the total sales generated by the stores directly and indirectly operated by Shanghai Rock Castle Furniture amounted to 23 million euros in 2023, including 8 million euros for the three directly-operated stores . The EBITDA margin achieved by Shanghai Rock Castle exceeded that of its top-performing United States and Canada regions, which stood at 27.1 percent in 2023.
From the date of the signing the group will consolidate the revenue from the three new directly-operated stores in Beijing and Shanghai, as well as the income generated from the franchise and trading activities.
Roche Bobois Group expects a full-year additional contribution of around 19 million euros to consolidated revenue. The accretive impact on revenue and margins will be more visible from full-year 2025 earnings, the firm said.
During Milan Design Week this year, Roche Bobois unveiled its collaboration with Chinese artist, designer and entrepreneur Jiang Qiong Er for a collection of furniture called the Bamboo Mood collection.
In addition to her work as an artist, Qiong Er is perhaps more widely known in the fashion world for creating Chinese luxury house Shang Xia, which she cofounded in 2009 with Hermès.
Roche Bobois is a French family business that was founded by François Roche in Paris in 1960. The group is present in 54 countries and has a network of 340 directly operated stores and franchises. It has two brands: Roche Bobois, which caters to high-end customers, and Cuir Center, positioned in the mid-range market segment.
