Humphrey Bogart’s Italian fedora maker seeks to get ahead in China

{"text":[[{"start":7.65,"text":"The Italian hat maker that produced Humphrey Bogart’s fedora in Casablanca is pushing into mainland China as the 169-year-old company holds out hope of growth in the struggling luxury market."}],[{"start":19.15,"text":"Milan-based Borsalino, Italy’s oldest luxury hat maker, plans to open an outlet in one of Shanghai’s biggest high-end shopping centres this summer after it started a pop-up store this month. It aims to open four more shops in China by the end of the year, compared with 20 it currently operates globally."}],[{"start":37.15,"text":"“We feel now is the right moment to approach the market,” said chief executive Mauro Baglietto, stressing China was “a very important market” that “needs an approach that is more disciplined than in the past”."}],[{"start":49.65,"text":"The company saw potential for up to 40 stores in greater China, but “we don’t want to have an aggressive plan”, he said."}],[{"start":null,"text":"

"}],[{"start":57.1,"text":"China’s luxury market has struggled for years as an economic slowdown weighs on consumer confidence and curtails the lavish spending that characterised the country’s boom years."}],[{"start":67.4,"text":"Brands such as Kering-owned Gucci have been hit hard by falling sales in the mainland. Alexis Bonhomme, founder and chief executive of luxury consultancy Trinity Asia, estimated sales declined 10-15 per cent across the industry last year, based on data from shopping centres. If a country manager reported a 10 per cent drop in sales, they were “safe”, he said."}],[{"start":90.80000000000001,"text":"There have been some recent signs of recovery, especially at bigger brands such as Louis Vuitton, which opened a ship-shaped shop in Shanghai last year. Its owner LVMH said the store had helped to drive a 7 per cent increase in the group’s China revenues in the third quarter of 2025."}],[{"start":108.20000000000002,"text":"For Borsalino, which turns out 300,000 hats a year and still makes its signature Panamas by hand, China is part of a wider revamp after a 2017 bankruptcy and subsequent takeover by Swiss private equity group Haeres Equita for €18mn. It is also expanding into leather bags."}],[{"start":null,"text":""}],[{"start":126.95000000000002,"text":"Bonhomme said China’s luxury market had started 2026 on a “better footing” than in late 2025, but it was becoming “increasingly polarised” with top labels recovering and mid-tier names struggling."}],[{"start":139.35000000000002,"text":"Brands associated with an “old money” or heritage aesthetic were outperforming, he added. “Chinese consumers are moving away from overt logos and increasingly prioritising quality of materials.”"}],[{"start":152.40000000000003,"text":"Alec Hou, founder of Essence Group, Borsalino’s mainland distributor, said while China’s luxury market experienced a “radical explosion” from 2008 to 2022, the present moment was not one for “building a large, universal market”."}],[{"start":168.05000000000004,"text":"“If you can identify a specific group of consumers, then that already represents a significant market in China,” he said."}],[{"start":174.90000000000003,"text":"“It’s always a matter of supply and demand,” he added. “If too many stores open, then consumption will definitely be insufficient.”"}],[{"start":182.30000000000004,"text":"Additional reporting by Silvia Sciorilli Borrelli in Milan"}],[{"start":192.95000000000005,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1776579827_9581.mp3"}