May growth in changing China cheers Salvatore Ferragamo
After a first quarter that it described as “the most horrible we have ever seen”, high-end footwear and accessories brand Salvatore Ferragamo has said its sales in China for the month of May have doubled.
In recent comments to Italian newspaper La Repubblica, chief executive, Ferruccio Ferragamo, said the company will never compromise on its commitment to Italian craftsmanship and the appeal of ‘Made in Italy’, but he said an important change may come as a result of the covid-19 pandemic.
He pointed out that many high-end Chinese consumers previously shopped for luxury products while travelling in Italy, France and other parts of the world. With travel restrictions making tourism and business trips difficult now, Mr Ferragamo said sales in the shops that his and other brands have set up in major Chinese cities will take on extra importance. And he confirmed that the physical shops his company runs will continue to be the core of the business.
At the same time, effective platforms for selling online, in China and in all markets, will be crucial. He said Salvatore Ferragamo had been slow to develop its ecommerce presence but, within 48 hours of realising how serious an effect on the business covid-19 would have, it embraced “the digital challenge” at last.
He argued that this lateness, in the end, had yielded some advantages, such as enabling the company to try out what he called “more innovative ways” of running an ecommerce division.
