Roche Bobois, renowned for its high-end home furnishings and embodiment of French Art de Vivre, has announced the signing of a letter of intent to acquire a majority interest in its franchised Roche Bobois store in China. This move follows successful franchise acquisitions in the United States (2020 and 2022) and France (2023), as Roche Bobois seeks to bolster its directly operated presence in this promising market where it has been active since 2004.
After two decades of operating as a franchiser in China, Roche Bobois has initiated discussions to acquire a 51% stake in Shanghai Rock Castle Furniture, the entity behind the Roche Bobois franchise in China. This entity currently oversees 3 stores (1 in Beijing and 2 in Shanghai) and manages 23 franchised outlets spread across various mid-sized cities.
Photo: Roche Bobois.
In 2023, China accounted for total retail sales of €23m, including €8m generated by the three directly operated stores in Beijing and Shanghai. With its luxury positioning epitomising the French Art de Vivre, Roche Bobois enjoys particularly high profitability in China. Consequently, Shanghai Rock Castle Furniture boasts an EBITDA margin surpassing that of the US/Canada region, already the Group's top EBITDA contributor with a margin of 27.1% in 2023.
Expected to be finalised in July 2024, this capital-intensive transaction is anticipated to bolster the sales of three new directly operated stores in the Group's financial statements, alongside a complementary franchise/trading activity.
Expanding horizons through partnership
Roche Bobois also announced its new collaboration with Chinese artist and designer, Jiang Qiong Er. As 2024 marks the Franco-Chinese year of cultural tourism, this collaboration underscores Roche Bobois' commitment to prestigious partnerships.
Inspired by Chinese art and culture, Jiang Qiong Er's extensive and original collection encompasses a unique range of seating furniture, console and coffee tables, ceramics, rugs, and screens. Roche Bobois is set to unveil this collection during Milan Design Week 2024, scheduled from 16 to 21 April, 2024, in Milan, Italy.
Jiang Qiong Er, renowned for infusing China's cultural heritage into contemporary designs, has earned global recognition for her artistic contributions. Her works adorn prominent museums worldwide, including the British and Victoria & Albert Museums in London, as well as Paris' Musée national des arts Asiatiques-Guimet and Musée des Arts Décoratifs.
Roche Bobois is honoured to have two exclusive furniture pieces featured in Jiang Qiong Er's upcoming exhibition, "Gardiens du Temps" ("Guardians of Time"), scheduled to open on 27 April at Paris' Musée Guimet. This exhibition promises to offer visitors a captivating journey through Chinese culture and mythology.
More information:
Roche Bobois SA
www.finance-roche-bobois.com