Chinese firms find sweet spot in overseas brand acquisitions

Chinese companies are acquiring foreign brands so that they can introduce the brand and its products to domestic shoppers, according to retail experts.

The appraisal came after Chinese conglomerate Fosun sealed two offshore investment deals in two weeks: adding Austrian luxury textile maker Wolford AG and French luxury couture house Jeanne Lanvin SAS to its portfolio.

"Because of Chinese consumers, a group like Fosun can buy a foreign luxury brand at a price most others cannot, because they can then bring them to China and capture a lot of additional value," said Jeffrey Towson, professor of investment at Peking University.