Ferragamo Holds Investor Day Conference In Italy

According to the World Clothing, Shoes and Hats Network, Italy luxury goods Group Salvatore Ferragamo (hereinafter referred to as Ferragamo) in Palazzo, Italy last Friday The head office of Spini Feroni held an investor day conference. Eraldo Poletto, CEO of the Group, and Ferragamo, member of the Ferragamo family, and Ferruccio, Chairman Ferragamo attended together, and clearly denied the rumors that the group was seeking to sell.

"We haven't even considered selling." Ferruccio Ferragamo said, and again emphasized his confidence in introducing external management strategies: "We should have done so in 2006. Having a manager independent of the family is a very healthy model." At present, Ferragamo The family has a large number of members, including 23 grandchildren and 40 great grandchildren.

Other company members attending the investor day meeting include three brothers and sisters of the chairman: Leonardo Ferragamo, Fulvia Ferragamo and GiovannaFerragamo ; Their mother Wanda Ferragamo and three third generation family members James who participated in the management of the company Ferragamo, Angelica Ferragamo and Diego Ferragamo.

"Our current situation is very stable." Ferruccio Ferragamo said: "We have a good organizational structure and sufficient market share, but we are not satisfied. There are still many potential opportunities to explore, and we can improve the performance of our stores."

　 Rapid target growth

In the past few years, Ferragamo Group has been very cautious in expanding the global market, so the new CEO Poletto take brand Compare it to a "sleeping beauty". He said that the medium-term goal in the next three to four years is to strengthen sales, improve product portfolio, increase gross profit margin and EBITDA (profit before interest, tax, depreciation and amortization), and achieve rapid growth, which is expected to reach "twice the overall growth rate of the market".

　　Poletto It also attaches great importance to the Group's 4000 employees in 65 countries around the world. He said: "We must motivate our employees to truly bring into play the strengths of the brand. We have not done well in this area in the past."

In addition, as part of its marketing strategy, Ferragamo Group will disclose a new official website construction plan in the middle of 2017. Last December, Ferragamo It has just opened a new online store in China and plans to launch a multi-channel strategy globally this year. Poletto Said that the brand needs to: "be more concise, but more powerful in conveying information to consumers, and maintain the essence of the brand."

　　Ferragamo At present, the Group plans to slow down the pace of opening stores. It is estimated that the number of new stores will be about 15 to 20 every year. Poletto said that this is to invest more resources in the renovation of existing "strong sales" stores. Group Chief Financial Officer Ernesto Greco said that since the IPO, the company has invested more than 140 million euros in store renovation. In the next three to four years, the expected capital expenditure will be 85 million euros.

　　 Optimize commodity mix

In addition, in March this year, Massimiliano Giornetti, the creative director of the group, announced his resignation, and his 2017 autumn series displayed at Milan Fashion Week in February also became his Ferragamo's curtain call performance.

In October this year, the CEO decided to divide the creative department into three categories: men's clothing, women's clothing and accessories. Paul Andrew, who won the award of "The Most Potential Accessory Designer of Swarovski Fund", is currently responsible for Ferragamo women's shoes series, the first women's shoes designer in the brand history, Fulvio Rigoni served as the creative director of women's clothing, while Guillaume was the creative director of men's clothing Meilland.

With regard to this decision, Poletto Said: "The brand itself points out the creative direction. We rely on the professional ability of each designer in their own field to carry out design work. Shoes are the most potential commodity category in leather products. Andrew The performance in this respect is very excellent, while maintaining the consistent style of the brand, it has added modern elements. "

"I hope to improve our product mix and release process from a commercial perspective." Poletto said: "We don't want to continue to be restricted by the season, but continue to create surprises in our stores and simplify our product series." He mentioned that he hopes the company can reduce the SKU of spring series products by 36% and reduce it by 30% in the next season. "We should create demand instead of following the trend of the market," he said

　　Poletto He said that the company has no plan to increase the price at present. He stressed that "price is very important for consumers' experience. Sometimes there will be problems in the pricing of luxury brands, and we must scientifically establish pricing strategies." He said: “Ferragamo It is very good at the entry price, and can perform better in the pricing of high-end goods. "

Ferragamo Group released the financial data of the fourth quarter last week, but they did not disclose more relevant data at this investor's day meeting. In FY2016, Ferragamo The Group's total sales were 1.44 billion euros, up 1% year on year.

　　 However, Poletto mentioned the proportion of some sales channels and commodity types in the total sales. The specific data are as follows:

The sales of women's goods account for more than 60% of the total sales

The sales of footwear accounted for 42%, the highest among all commodities, followed by leather products (37%)

Retail channel sales accounted for 65% of the total sales

The Asia Pacific region is the largest market, accounting for 36% of sales, and the United States ranks second, accounting for 24%

Poletto said, Ferragamo The Group must be "very flexible", constantly evolving and constantly adjusting its strategy: "Now is a new era, and only companies that emphasize the quality of goods can stand out." He stressed that the strategy of commodity types and combinations will be the key development object of the Group in the future.

Ernesto Greco also pointed out that Patent Box, a tax reduction plan for Italian patent holders It will greatly promote the profitability of the company. It is estimated that from 2015 to 2020, it will bring 100 million euros of additional profits to the company. In 2016, the tax rate was 31%, and from 2018, it will be reduced to 24%. In addition, the Group has also invested in a new distribution center in Osmannoro near Florence, which is expected to be put into use in August 2018.

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