Barcelona-headquartered Desigual has secured a high-visibility foothold in Shanghai’s Taikoo Hui mall by opening its ninth physical store in China. This opening underscores a significant shift in the brand’s Asian trajectory, following a remarkable fiscal year where Chinese sales increased by 113 per cent. By leveraging a strategic 2022 JV with local partner E-Shine, the fashion house is successfully navigating a retail landscape that increasingly demands a blend of digital dominance and tactile, high-concept physical presence.

Localized product uration and the ‘New Desigual’ identity

The Shanghai flagship serves as a testing ground for a hyper-localized inventory strategy, where nearly 20 per cent of the collection is specifically tailored to Chinese fit and aesthetic preferences. This ‘global-local’ approach is vital for maintaining a premium positioning in a market where 65 per cent of Gen Z consumers now prioritize unique, non-conforming styles over traditional mass-market luxury. Inspired by Mediterranean organicism, the store’s architectural design aligns with the ‘New Desigual’ rebranding, which aims to elevate the brand from a legacy patchwork label to a contemporary creative house.

Aggressive roadmap towards regional revenue diversification

With a target turnover of €40 million by 2027, the E-Shine partnership is currently executing a roadmap to establish 60 standalone stores across mainland China. This expansion is essential as Desigual seeks to reduce its historical dependence on European markets, aiming for a 60 per cent non-European revenue share within the next two fiscal years. Physical retail in Tier-1 cities remains our most potent tool for storytelling, even as digital platforms like Tmall drive the majority of our volume, noted a regional trade consultant. Despite challenges such as rising commercial rents and intense competition from local designer labels, Desigual’s triple-digit growth suggests a resilient appetite for its ‘atypical’ aesthetic in the broader Asian fashion corridor.

Spanish fashion house Desigual produces vibrant, art-inspired apparel for nearly 90 countries. Focused on a 2025–2028 Asian expansion plan, the brand is scaling its physical presence in China and Japan alongside a robust digital transformation. Following a 113 per cent sales increase in China, the firm anticipates a 60 per cent non-European turnover by 2027.