MILAN — OTB is planning an expansion of its luxury brands in the Middle East and has inked a joint venture agreement with Chalhoub Group, leveraging the established infrastructure and expertise of the biggest luxury retail partner in the region.
In particular, OTB plans to further develop the penetration and visibility of Jil Sander, Maison Margiela and Marni in the Middle East through new store openings, enhancing own e-commerce sites and local marketing activities. Two existing stores for Maison Margiela were set up with Chalhoub in Dubai and Kuwait City but preceded the joint venture.
Under the latest agreement, 15 new stores are expected to open over the next five years in key markets such as the United Arab Emirates, Qatar, Saudi Arabia and Kuwait, in addition to the presence of the brands in key department and concept stores across the region.
OTB also controls the Diesel and Viktor & Rolf brands, as well as the Staff International and Brave Kid production arms, and holds a stake in the Amiri brand.
Chalhoub Group has a portfolio of 10 owned brands and is a partner to more than 450 international labels.
Renzo Rosso, founder and chairman of the OTB Group, touted the “long and extensive expertise” of Chalhoub in the Middle East. “This is a strategic agreement for us and comes at an incredibly positive time for our brands, which have high visibility thanks to the work done in the last few years, specifically to enhance the creativity and quality of their product.”
Renzo Rosso
Martin Schoeller/Courtesy of OTB
Rosso said that “with this partnership, we want to introduce the beauty of our brands to the Middle East and spread it throughout the region, one of the world’s most interesting markets today. I am delighted about this partnership with Chalhoub Group as we share the same values and vision.”
“We are proud to continue our partnership with OTB Group and I am confident that this strategic agreement marks the beginning of an accelerated journey together driven by a shared passion for luxury,” said Chalhoub group president Patrick Chalhoub. “By working closely with the OTB team, we aim to expand and grow their unique portfolio of iconic brands Jil Sander, Maison Margiela and Marni within all the GCC [Gulf Cooperation Council] countries. Our focus will be on delivering the highest-quality offerings, exceptional services and personalized experiences to our customers across various touchpoints.”
Patrick Chalhoub
In the 12 months ended Dec. 31, OTB reported turnover of 1.9 billion euros, up 7.2 percent compared with 1.74 billion euros in 2022. Net sales amounted to 1.8 billion euros, climbing 9.1 percent compared with 1.63 billion euros in 2022.
Jil Sander, Maison Margiela and Marni make up OTB’s luxury segment, which reported 17.6 percent growth at constant exchange rates and which helped drive total sales, but the group does not disclose revenues by brand.
