Worldview | What’s Next for China’s Record-Breaking Luxury Mall?

🇨🇳 China’s record-breaking luxury mall Deji Plaza bets on new formats. The Nanjing retailer, which in 2024 surpassed SKP Beijing to become China’s top-selling luxury mall, is set to open more affordable, off-price and youth-focused formats in Jiangsu province rather than rolling out pure-play luxury properties nationwide. The company will reportedly open Deji Moment, offering hundreds of specialty brands making their debut in Nanjing and targeting younger consumers from a new location in the city’s Hexi district. Another development in the pipeline is Xianlin Deji Outlets near the city’s universities, which will combine discount shopping with art and cultural experiences. The strategy reflects a cautious approach in a Chinese luxury market that is still recovering from a prolonged downturn. Deji, which has been developing a property in Xuzhou in the north of Jiangsu, is also eyeing Yangzhou, another city in the province about 50 minutes by train from Nanjing. The group’s high-end flagship in Nanjing’s Xinjiekou district, which is home to brands from Hermès to Prada, boasts an art museum, food hall and cavernous restrooms with themes such as calligraphy and cyberpunk that have gone viral. [Jing Daily, Reuters]

🇧🇷 Brazilian fashion group Azzas 2154’s stock plunges 60% since merger. The Belo Horizonte-based group that formed in 2024 from a merger between Arezzo and Grupo Soma has been hit hard by a management exodus and an acrimonious legal dispute between its two leaders, Alexandre Birman and Roberto Jatahy, over how to run the business. The two sides are now reportedly considering splitting their B3-listed company back in two. The sprawling group encompasses major local apparel brands such as Farm Rio, Carol Bassi, Animale, Reserva and Hering as well as footwear brands Arezzo, Schutz, Alexandre Birman, Anacapri and Brizza across a range of price points. However, sales at many brands are stagnant, with Farm Rio emerging as the company’s “powerhouse,” according to Itau BBA analyst Rodrigo Gastim. Citigroup Inc. analyst João Pedro Soares believes that “the most likely outcome is the Farm brand being capitalised or spun off, given its stronger growth prospects relative to the group.” [Bloomberg, BoF]

🇰🇷 South Korea’s Misto Holdings reports 19% profit surge in Q1. The Seoul-based footwear and sporting goods major has recorded operating profit of 193.7 billion won ($129.22 million), on consolidated revenue of 1.3 trillion won during the period. “Moving forward, we will continue to solidify our sustainable growth foundation through expansion in China, enhancement of our brand portfolio, and profitability-focused management,” said Ho Yeon (Aaron) Lee, CFO of Misto Holdings. The group, formerly known as Fila Holdings, owns a portfolio of businesses including Fila, golf goods and performance wear brands Acushnet, Titleist and FootJoy and streetwear labels Alife and Holy Number 7. [Fibre2Fashion]

🌎 Latin American fashion retailers prepare to return to Venezuela. Following the Jan. 3 US military operation that led to the capture of president Nicolas Maduro, the Venezuelan retail sector was disrupted before stability returned with the installation of acting president Delcy Rodríguez. In the immediate aftermath of the upheaval, Panama-based Grupo David and Caracas-based Grupo Dumit indicated they were pressing forward with expansion plans for the international brands they partner with. Now, Colombian fashion brands such as Vélez are reportedly eyeing major Venezuelan cities like Caracas, Valencia, and Maracaibo. Together with Bancóldex, Colombia ministry of commerce, industry and tourism has announced a new financial package to strengthen Colombian exports to the Venezuelan market, including a $100 million credit line focused on foreign trade operations, working capital and business modernisation. [Fashion Network]

🇯🇵 Japanese push back against a campaign promoting shorts at the office. While some have embraced the government’s ‘Cool Biz’ campaign urging people to wear casual clothes, including shorts, rather than suits in the office this summer, others are unhappy about the intervention in workplace dress codes. Some employees remain unconvinced that wearing shorts in the workplace is sufficiently professional or modest. Launched in 2005 to reduce air conditioning use during Japan’s often-sweltering summers, the campaign has been revived and expanded in response to energy shortages following disruption to shipping through the Strait of Hormuz caused by the war in the Middle East. [Japan Times]

🇮🇳 Indian retail giant Aditya Birla Fashion’s losses widen in Q4. Mumbai-based Aditya Birla Fashion and Retail Ltd. (ABFRL) has posted consolidated net losses of 163.81 crore rupees ($17.2 million) for the fourth quarter of 2026 ended March, compared to 23.55 crore rupees in net profit in the same period a year earlier. Revenue from operations grew 15 percent to 1,990.13 crore rupees ($208.9 million) during the period. Owned by mining-to-textiles conglomerate Aditya Birla Group, ABFRL has a diverse portfolio of fashion investments including the brands Pantaloons, Sabyasachi, Tarun Tahiliani and Shantnu & Nikhil as well as multi-brand retailers The Collective and Galeries Lafayette India. [Economic Times]

🇨🇳 Chinese apparel exporters ramp up trade routes to Russia. Russian importers that once relied on intermediaries, cross-border e-commerce operators or transit through neighbouring countries are being pushed by Chinese suppliers toward direct sourcing. The moves follow China’s efforts to secure additional market share in Russia by building more direct and formalised apparel supply routes through factory clusters, faster rail-linked replenishment, improved logistics networks and products developed specifically for the Russian market. China has become a major supplier to Russia since Russia became isolated from Western supply chains after its full-scale invasion of Ukraine. [Fibre2Fashion]

🇮🇳 Indian film star Anushka Sharma acquires a stake in Agilitas Sports. The Bollywood actress and producer has joined her husband, cricketer Virat Kohli, as an investor in the activewear brand founded by former Puma India executives. Terms of the deal were not disclosed, but local media characterised Sharma’s stake as “minor”. Sharma will co-develop the brand’s yoga line under the Kohli-founded One8 label, which was acquired last year by Agilitas as part of a wider deal that saw Kolhi acquire a minority stake in the company for about 40 crore rupees ($4.2 million) as co-investor and business partner.

🇬🇭 Microfibre pollution levels soar near Ghana’s second-hand fashion market. According to a report led by The Or Foundation which was published in the journal Environmental Advances, air-bound microfibre pollution levels in the Ghanaian capital Accra are up to 20 times higher while water-bound levels are up to 45 times higher than in other major cities around the world. The city’s Kantamanto Market is one of the world’s largest second-hand fashion and textile hubs, through which around 15 million garments pass each week. [FashionNetwork]

🇮🇳 Indian actress Kriti Sanon invests in local jewellery brand Giva. The Bollywood star has acquired an undisclosed stake in the digital-first jewellery brand founded in 2019 by Ishendra Agarwal, Nikita Prasad and Aditya Labroo. She will also build on her work as a campaign model to become a brand ambassador. The silver jewellery specialist, which operates over 300 stores across India and Sri Lanka, raised 530 crore rupees ($61.5 million at the time) last year in a Series C round led by Creaegis, with participation from Premji Invest, Epiq Capital and Edelweiss Discovery Fund. [Economic Times]

🇨🇳 China-founded Shein accused of copying 20 designs from Canadian brand.After the Winnipeg-based Indigenous Nations Apparel Company (INAC) alerted the ultra-fast fashion giant to the alleged knockoffs being offered by third-party sellers on the Shein marketplace, the listings were mostly removed. Michelle Cameron, owner and founder of INAC, said, “I was really shocked and then it turned to anger and disgust…It’s even our staff members that they’re using [in] their photos. The one picture has my daughter in it. It’s absurd." Shein said in an emailed statement to CBC that it “immediately removed the listings from our platform and launched an investigation.” [CBC]

🇦🇺 Australian luxury e-tailer Cettire halts trading to reveal Tmall deal. The partnership with the Chinese platform follows a challenging year for the Australian firm, which recently swung into the red. The Melbourne-based, ASX-listed company founded by Dean Mintz in 2017 reportedly uses drop-shipping to sell labels like Prada, Burberry and Gucci at discounts via third-party and direct suppliers to global consumers. “The partnership with [Alibaba-owned] Tmall Global represents an important step in broadening our pathways to market in China, which remains the world’s largest luxury market,” said Mintz, who launched Cettire’s own e-commerce platform in China in 2024. [Inside Retail]

🇦🇪 Primark opens its third store in the UAE during the Middle East conflict. Following its debut at Dubai Mall in March and another location in April at the City Centre Mirdif, the Dublin-based budget retailer has opened in the Mall of the Emirates. “We are now looking forward to building on this strong foundation as the brand continues to grow across the Middle East,” said John Hadden, CEO of Alshaya Group, the Kuwaiti retail giant that is the Middle East partner for Primark, which opened in Kuwait City last year. “We can’t wait to open in Bahrain and Qatar later this year,” said Alshaya Group director of international expansion at Primark. [Zawya]

🇹🇭 Thailand Fashion Week attracts designers from around Asia. The biannual event saw designers from across the region join local brands such as Suwanee by Sam to present their latest collections on the Bangkok runways. Among those showing were Indonesian label Alethea Sposa by Evelyn Witono Putri, Filipino brand Don Cristobal and South Korean label Flerin. [Bangkok Post]