Having invested heavily in Asia its largest regional market over the previous a number of years, and centered more and more on mainland China growth, this week Italian luxurious fashion group Salvatore Ferragamo introduced plans to extend its stake in China joint ventures for distribution from 50 to 75 p.c over the course of 2013. This, as the AP factors out, follows current agreements with the Hong Kong-primarily based brand administration and distribution company Imaginex Holdings in addition to Imaginex Overseas.
Ferragamo has expanded aggressively since entering the mainland China market in 1995, opening round 60 areas in more than 30 cities throughout the Mainland. The model currently operates around 100 factors of sale in the Larger China region alone, and launched an official online store this past October. Despite a tougher retail surroundings in mainland China in the third and fourth quarters of 2012 owing to extra overseas spending by vacationer-shoppers in search of excellent deals Chief Executive Michele Norsa has stated that he expects a rebound in the months ahead.
Whereas over-enlargement has been an issue for some world high-finish manufacturers in China, significantly those with decrease brand-identify resonance amongst inland Chinese language consumers, Ferragamo has built up fairly a reputation for itself even amongst male consumers in third- and fourth-tier cities. This, along with the brand’s sturdy nationwide sales presence (both physical and on-line), social media activities, and vast product mix bodes effectively for the year ahead, even if shoppers in Beijing or Shanghai significantly minimize again.