So its common knowledge that the best fashion brands are either French or Italian. One of the stars of Italian design and quality is brand Salvatore Feragammo.
The craftsman of the same name started designing and hand sewing shoes from age 9 in Naples. By 1923 he was popularly known as the shoemaker for the stars and had located to Hollywood. Salvatore died in 1960 at the age of 62.
By that time the brand was known globally and the foundations of a global luxury empire had been laid. His wife and six children more than capably took the business to another level. An article in the World Street Journal quotes the 2010 net profits of the company at 60.8 million Euors, compared to a net loss of 14.7 million Euros reported in 2009. Sales rose 26% to 781.6 million Euros from 619.6 million Euros a year earlier.
Recently I had the pleasure of meeting Fulvia Visconti Feragammo. She’s the daughter of the visionary designer and also a member of the company’ board. She said that India accounted for just 1% of the global sales figures for the company in a year when the Asia Pacific itself accounted for 51% of total global sales. So clearly India remains a miniscule market even though since its 2004 debut, four stores have been established here.
Now if you’re instantly assuming that China is a big contributor to those sales, you’re right! But Ms.Feragammo says comparing the two markets is unfair.“ It is difficult to compare the two markets. In India we entered 5 years ago whereas we entered China 25 years ago,” she says.
Fulvia Feragammo started the silk accessories range for Feragammo. And in fact in India, these products, like ties and scarves, have worked well as samples of the larger brand promise.
“These are impulsive buys. They are presents and just colourful, happy products. So they sometimes introduce you to the brand. People who don’t know you, they come see these products, buy them and then discover our core business… the shoes and the bags,” says Fulvia Feragammo.
Not just that. In India, she feels accessories are in big demand. “They’re the first things Indian ladies can buy. With beautiful Indian clothes, our beautiful accessories match very well.”
Isn’t that a telling statement on how an international luxury brand can approach our market? I mean for you and I, it’s easier to buy and wear a Jimmy Choo than fit into a Christian Dior gown which will require customisation to some extent and of course costs more than an accessory. Price apart, luxury apparel is used for very special occasions whereas a bag or shoe may be used more frequently.
In fact Fulvia Fergammo is sure that because the demand for good accessories is high here, India may be the 5th largest market for Feragammo by 2020.
While my conversation with Fulvia Feragammo was largely about the brand and its India business, I couldn’t help as a question many Indian designer may think of. Like them, Feragammo has never allowed outsider money in the business.
Ms.Feragammo had a smile on her face while answering this. “Our generation has grown up like this. We have believed a lot and worked very hard for our company. So far we were six of us brothers and sisters. We’ve got along very well because we head different areas of the business and there has been no overlap. We have kept it together preciously. Now we have many children and grandchildren so the future may be different.”
Let me explain why that smile is telling. Speculation is rife that the company is indeed going for an IPO later in Italy this year. In fact some stake in the Hong Kong arm of the business has already been sold to someone Ms.Feragammo feels is a friend. She shared with me that while getting investor money can stupendously help in rapid growth, sometimes it’s just wiser to believe in your own vision of your product and grow its business slowly but steadily. Because it is difficult to find someone who will love the product as much as you, as its creator, will.
As I finished my conversation with Ms. Feragammo, I couldn’t help but feel a little sad. Perhaps it’s something I sensed from her as well. Very soon, Salvatore Feragammo may not be a family business. In a funny way, it’s like letting your kid married. You know you’ll always love it unconditionally but there is no more guarantee if it will really need you anymore.
In both life and in business, moving on can be an emotional reality.
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