Arrogance Comes at a Cost for European Brands in China, Veteran Investor Warns
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European companies risk misreading China if they crack the market with arrogance rather than adaptability, warned Tommaso Paoli, CEO of Italian investment firm NUO, saying that the country’s retail ecosystem moves faster and is closer to consumers than Europe’s in many respects.
During a recent interview with Caixin, Paoli highlighted China’s strategic importance for international brands, saying that his firm views the world’s second-largest economy not only as a key export destination but also as a testing ground for retail strategies that can be replicated in Europe.
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- Tommaso Paoli, CEO of NUO, stresses adaptability over arrogance for European firms entering China’s fast-moving, consumer-centric retail market.
- NUO’s investment in Marvis saw the brand open its first Shanghai store in 2025, using its business model as a template for Europe.
- NUO manages nearly €1 billion, with portfolio firms averaging 20% EBITDA growth, and seeks unique brands for cost-conscious Chinese consumers.
- NUO
- NUO is an Italian investment firm founded in 2016, with a focus on consumer-sector investments. Led by CEO Tommaso Paoli, the firm manages a portfolio valued at nearly 1 billion euros. NUO views China as a strategically important market, not just for exports but as a testing ground for retail strategies. They emphasize adaptability and learning from local players in the Chinese market.
- Marvis
- Marvis is an Italian premium toothpaste brand. Its first self-operated physical store opened in Shanghai in September 2025, a launch deemed "very successful" by Tommaso Paoli, CEO of investment firm NUO. The Shanghai store's business model will serve as a blueprint for future European outlets.
- Venchi
- Venchi is an Italian chocolate maker that has received investment from NUO, an Italian investment firm. NUO focuses on consumer-sector investments and manages a portfolio valued at close to 1 billion euros. NUO views China as a strategic market for international brands, including those in its portfolio.
- Subdued
- Subdued is a women's fashion label that has received investment from NUO, an Italian investment firm. NUO focuses on consumer-sector investments and manages a portfolio valued at close to 1 billion euros.
- Montura
- Montura is an outdoor apparel company that NUO, an Italian investment firm, has backed. NUO focuses on consumer-sector investments and manages a portfolio valued at nearly 1 billion euros.
- 2016：
- NUO was founded.
- September 2025：
- Marvis opened its first-ever self-operated physical store in Shanghai.
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