Italian luxury goods retailer Salvatore Ferragamo has been expanding its business globally and Asia has been good to Ferragamo, accounting for 51% of sales in 2010.
In recent years, China, in particular, has been a key driver to sales growth. The Florence-based company has 50 stores in 32 mainland cities in China. The company plans to open seven to nine stores in lower-tier cities this year.
As part of this expansion plan, Ferragamo recently launched two stores — in Kunming, a booming luxury market in southwest China, and in Guiyang, capital of Guizhou Province and a tier-3 city.
The Kunming store is located in the Ginko Department Store Shinguang Shop, one of the city’s shopping icons. The 256 square meter store offers several Ferragamo product lines.
The Guiyang store, which occupies 151 square meter of retail space, is located in the city’s only shopping mall.
Ferragamo entered China with its first store in 1994. Now, China may become its number one market — by 2012 if not by the end of this year, according to Paul Cadman, Ferragamo’s regional chief executive for Asia-Pacific.
Michele Norsa, chief executive officer of Ferragamo said, “China has become even wider in terms of potential than the United States, in terms of coverage, in terms of cities.”
“It’s the only market where you have a level of growth of infrastructure, real-estate investment, shopping malls, hotels that is fundamental to the development of luxury markets,” he said.
Norsa believes that of the four leading BRIC emerging economies — Brazil, Russia, India, and China — China is the most advanced and one with more international tastes.
photo credit: ferragamo