A lot has happened in the fashion industry since I last
spoke with Furla’s CEO Eraldo Poletto two years ago. The Chinese economic
slowdown and currency woes, to name just two burning issues of the moment. But
Poletto is his usual cheerful and ebullient self when we sit down at the TFWA
World Exhibition in October to discuss Furla’s stellar progress. The Italian lifestyle brand ended 2014 with a turnover of
€262m and, since the beginning of the year, the company has opened 39 stores. Impressively,
Furla closed the first half of 2015 with turnover up 30% compared with last
year, with Japan as the brand’s biggest market.
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| Furla CEO Eraldo Poletto |
New York flagship "one step ahead"
In October, a Japanese flagship began trading in Ginza,
Tokyo, following a September opening at Marina Bay Sands in Singapore. The
latest major flagship has just opened its doors on Fifth Avenue, New York (51st
Street), a store that Poletto describes as “one step ahead” for Furla, boasting
a prominent façade on the busy shopping thoroughfare. And in November 2015,
Furla is opening at two more key locations: Hong Kong’s Mira Mall and Rome’s
Piazza di Spagna.
Furla now boasts some 192 travel retail locations, with 200
forecast by the end of the year. Poletto is clear about how he wants the stores
to look. “The stores must be personalised to create a proper customer
experience, so we will close a few locations between now and mid-2016, as it’s
important to have the proper space and adjacencies.”
The Korean duty free market – a sales phenomenon for some luxury
bag brands such as MCM – is managed directly by Furla. The company’s business
at Seoul Incheon airport Is “doing very well and it will get better”, he says.
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| Furla Metropolis crossbody bag |
Moving to "premium luxury"
Poletto does not seem overly concerned about the currency
situation but acknowledges that the foreign-exchange headwinds create
uncertainty. He is forging ahead with his strategy of “borrowing from the
luxury industry what is beautiful, and the creativity in design and quality”
and then offering “a great product at a great price” in stores that boast
excellent customer service. He notes that Furla is moving from “premium” to
“premium luxury” and the strategy is paying off. The company has made big
investments in marketing and communications. From Spring/Summer 2015 onwards,
star photographer Mario Testino is shooting the brand’s ad campaigns.
Poletto describes Furla as a “made-in-Italy, joyful,
contemporary Italian lifestyle brand” that is eclectic in its use of colours.
He cites the Metropolis as a very successful bag. This crossbody model is “a
lot of fun and is very well made by a great team”.
Turning to the competition, Poletto admits that rivalry has
become stiffer in the premium, affordable luxury end of the market thanks to
Michael Kors, Coach, Tory Burch, Kate Spade and others. “I love competition.
What’s different is our level of product; it’s made in Italy and is a step up
from the other brands,” he enthuses. “We are the only made-in-Italy premium brand
in accessories.”
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| Furla Artesia bag |
VIP-level customer service
Despite the Chinese slowdown, which is hitting some luxury brands
hard, Furla continues to generate double-digit growth within Greater China, but
Poletto has noticed that fewer mainland Chinese are visiting Hong Kong and
instead are travelling to Japan and Europe. However, he adds: “Our business in
Hong Kong is important and is going very well.”
As Furla heads for €300m in annual turnover, the strategy
now is to step up the customer conversion rate, including the number of units
sold per head, with VIP-level customer service at the heart of its operations.
Eraldo Poletto is a very happy man indeed.
