A Ferretti Yacht. [File photo]
Chinese investors have set their eyes on deluxe foreign brands as domestic appetite for luxury consumptions continues to grow.
China's state-controlled Shandong Heavy Industry Group announced in January that it would invest 178 million euros (US$233 million) and extend credit worth 196 million euros (US$256 million) for a 75 percent stake in Italian yacht-maker Ferretti Group. The deal marks the latest of a series of purchases of luxury brands by Chinese companies.
Other deals include Trinity Ltd.'s purchase of menswear company Cerruti Holding SpA for US$69 million in 2010 and Ningbo Huaxiang Electronic Co.'s acquisition of luxury-interior assets from Jaguar Land Rover for US$23 million in 2010. Two Chinese automakers also attempted to buy Sweden's Saab Automobile AB last year, yet failed because Saab's former parent company General Motors Co. said it wouldn't sell technology license to potential competitors.
Despite of the successful purchases, Chinese investors of luxury brands face challenges with preserving the brands' mystique and reputation onwards.
Contact the writer of this story at: email@example.com.