Italian luxury enters Shanghai. How can Italian high-end furniture break through the Chinese market?

Dexelance Group is one of the important groups in the high-end design field in Italy. It brings together multiple brands with unique positioning and forms strategic alliances through complementary businesses. In early June this year, the group established a new headquarters in Shanghai and created exclusive exhibition Spaces for its brands Gervasoni, Meridiani, Davide Groppi, Saba Italia and Turri. This is the third overseas base established by the group worldwide after New York and London.

To gain a foothold in the Chinese market and become an industry leader and an important player, it is necessary to actively integrate into the local area. Giorgio Gobbi, the managing director of Dexelance Group, emphasized in a recent exclusive interview with a reporter from 21st Century Business Herald that this is another milestone in the group's business journey and another strong evidence of its fulfillment of commitments. "We will expand the international territory of Dexelance and support our companies in entering new markets." And provide them with an expanding network of customers and partners.

Although the turnover of Dexelance in China accounted for only about 4% of the total turnover of the group in 2024, Giorgio Gobbi believes that the Chinese market has huge potential and is expected to achieve rapid growth in the future. He foresaw that there were many integration opportunities between "Made in Italy" and the Chinese market, and therefore hoped to make early plans.

The new headquarters in Shanghai: A strategic focus for deepening localization

21st Century: Why was Shanghai Chosen as the Location of the New headquarters?

Giorgio Gobbi: The answer is straightforward: To establish a foothold in the Chinese market and become a leader, one must deeply integrate into the local area. When the project was launched ten years ago, we foresaw that China would become a key market. At first, we set up an office in Suzhou, but we always planned to move to Shanghai, a place where architects and designers gather, when the brand and the institution matured. Based on the same logic, we have also established branches in New York and London.

21st Century: How to Balance Italian Design with the Tastes of Chinese Consumers?

Giorgio Gobbi: Good question! This is precisely the core reason why we have established subsidiaries and resident teams in China. Dexelance Group integrates high-end Italian design furniture and lighting brands with prominent commercial value, aiming to convey the Italian lifestyle to the world. Each brand carries a unique Italian ideal - encompassing style, fashion and lifestyle. However, this inevitably requires an additional task - which I call "cultural translation". Therefore, we have established a professional resident team here, whose responsibility is to precisely translate the working methods, distribution models and product features of the group into expressions that conform to the habits of the Chinese market. Balancing Italian design with Chinese taste is precisely the core of our daily practice.

21st Century: Do you have any plans to collaborate with local designers?

Giorgio Gobbi: Sure! We are never limited to Italian designers. In the high-end market, designers, architects are as important as end consumers. We must target the group of designers and architects in China. The original design intention of this three-story new headquarters is to create a space for receiving designers, allowing them to bring clients here. To some extent, this is a gathering place for inspiration.

21st Century: What is the proportion of China in the group's global revenue?

Giorgio Gobbi: Currently, it accounts for approximately 4%. Although it's not high, it has great potential in the future. It is only a matter of time before the Chinese market is bound to grow into the most important market for high-end design and lighting products. I believe that in the coming years, China's share will increase significantly.

The stable genes of the high-end market: 40 billion euros and long-termism

21st Century: Will current uncertainties such as shipping and market fluctuations impact business in China? Will there be an increase in the use of local warehouses or resources in the future?

Giorgio Gobbi: The influence exists, but is limited. Although the high-end market is disturbed by geopolitical uncertainties, it is relatively stable on the whole. The global market size of high-end furniture and lighting is approximately 40 billion euros, maintaining a compound annual growth rate of 4% to 5% over the past 20 years (with occasional fluctuations).

We mainly supply real estate or long-term projects. Short-term turbulence may affect terminal consumer confidence, but the long-term trend is stable. Therefore, we are not worried about the long-term prospects. Stockpiling a large amount of inventory in local or global warehouses is not a good strategy, because the core of the high-end market is customized services. The sofa I'm sitting on May have thousands of variations - the fabric, finish, size and comfort level can all be customized. All products are non-standard and need to be tailor-made according to the individualized demands of architects, designers or customers. They cannot be in stock.

21st century: With current consumption tending to be cautious, how will companies respond?

Giorgio Gobbi: This is a global trend and it also affects our industry. But what we sell are durable products, usually serving long-term projects with decision-making cycles of several months or even years. Although the hotel industry was hit hard during the epidemic, the construction of new hotels did not come to a halt because everyone foresighted the recovery of demand after the epidemic. The same is true for the residential business.

21st century: Besides luxury residences, will you pay attention to boutique hotels or commercial projects?

Giorgio Gobbi: Yes, all brands are doing it. Our goal is to bring the Italian lifestyle to the world. This experience is not limited to home; it can also be felt during a vacation through exquisite hotels or resorts. We have long been providing furniture and lighting solutions for high-end hotels, boutique hotels, restaurants and resorts around the world, and the Chinese market is also a key focus.

The challenge of counterfeits: Building a moat with "product + experience"

21st Century: Will the numerous low-priced furniture available online affect pricing or offline sales?

Giorgio Gobbi: The actual impact is not significant. Our products are usually large, heavy and expensive custom-made items. Take this sofa as an example. Customers can choose from hundreds of kinds of fabrics. E-commerce is not the best way to deliver such products - it requires professionals to conduct on-site inspections to ensure they can pass through elevators or doors and be properly placed. Therefore, each product relies on local service support, which can only be provided by physical retailers.

In the 21st century, there are numerous imitations in the market. How can we make consumers recognize the value of original designs?

Giorgio Gobbi: This is about "experiences beyond mere products". Here's a funny story to share: Recently, in the hotel room I stayed at in Shanghai, there was a coffee table that was almost a perfect replica of our brand Meridiani products. The only difference was that the size and the proportion of the table legs were out of balance, making it look unattractive, and the cost was much lower. This is the problem of counterfeits. But let me reiterate one point: What we sell is not only products, but also an idea, a living atmosphere and a lifestyle, all of which are composed of the experiences and services provided by global professional retailers. To some extent, I'm even glad to see the products being imitated (not only in China) - this indicates that we have designed good products. But the true value lies in the complex of "product + experience + service + other elements".

21st Century: How can Italian Aesthetics better Connect with Chinese consumers? Are there any plans to collaborate with traditional Chinese craftsmanship or contemporary art?

Giorgio Gobbi: There are no specific plans for now, but it's very likely in the future. What we promote through the brand is the concept of the Italian lifestyle. Meanwhile, China's native customs and once-neglected traditions are reviving. Once the Chinese design community finds a way to present profound cultural heritage in a modern way, cooperation opportunities will naturally emerge. At present, we obtain market feedback through our local team and professional distributors to understand how to adjust our products to adapt to the contemporary Chinese lifestyle.

21st Century: How to view the next major opportunity and risk of "Made in Italy" in China?

Giorgio Gobbi: Frankly speaking, there aren't many risks. As I said before, I have seen many opportunities for integration. Italian design has a profound tradition, while China has an even longer history. However, its "design game" was once interrupted. I have seen many attempts to revive the elements of China that have lasted for thousands of years with modern techniques. Once this trend matures, it will bring huge opportunities rather than risks. The key lies in finding the way of integration and creating a new way to present the aesthetics of life - it may no longer be a pure Italian ideal, but a more complex and charming mixture.