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Interview Ferragamo Parfums ceo Luciano Bertinelli Building growth Despite a tough start to the year, Ferragamo Parfums is optimistic about future growth based on expansion in key markets by Corinne Blanché n just 12 years, Ferragamo Parfums has seen its wholesale How are you dealing with the Russian situation and Isales grow more than tenfold to almost €80m. The fragrance the ferce competition among retailers there? division now accounts for 6.3% of parent company Ferragamo Russia is our fouth-biggest market and as a result of the crisis, Group’s €1.3bn sales. Further growth is on the cards, driven we saw a double-digit decrease in sales in the frst three by Ferragamo group’s IPO in 2011, which has seen increased months of the year. We forecast a better situation in the second investment in boosting awareness for the brand as a whole. half if the political context does not degenerate. Retailers, The fragrance division’s business has been built on rapid which are suffering from the diffcult fnancial situation, have expansion in major markets and the brand is now distributed also put Ferragamo and the entire beauty industry under in 90 countries. However, in the past few years there has been pressure. More retailers are looking to sell brands exclusively. a shift in focus in terms of countries and the company has We have made some exceptional changes on pricing for 2014 looked to better balance expansion between emerging as in a partnership it makes sense to give a hand when there and mature markets. is an emergency. A key priority is to grow more consistently in the US, which is Ferragamo Parfums’ number-one market. What have been the consequences of disruption Despite the diffcult situation in Europe, the brand in China? will begin distribution in France in January 2015 Our imports were blocked in the frst few months of the and will reinforce its position in Germany. year. Despite this problem, we are performing Expansion in China, where it has 132 well in China and our distribution is dedicated counters, is also a key excellent—we have 132 dedicated element of its strategy. However, fragrance counters. Brand awareness the approach to this market may is high because the Salvatore Ferragamo change to become more targeted and fashion house entered the country twenty put greater focus on proftability. years ago and now has over 70 branded Ferragamo Parfums ceo Luciano Bertinelli standalone stores. In 2013, according to shares his views on the brand’s strategy for Euromonitor, Ferragamo was ranked number expansion and on the challenges so far this year. fve in the fragrance category. The Signorina fragrance ranks number eight in women’s fragrances with a 2% market share. Ferragamo Parfums’ sales were down 2.2% in the frst We are continuing to invest in fashion and perfumes in China. quarter of 2014. What happened? There is no structural reason for this, but two external factors Ferragamo Parfums has been investing in television in that have resulted in the decline. One is Russia and the China over the past three years, will you maintain this Ukrainian crisis and the second disruption is linked to China, investment? where there was a change overnight in legislation for imports, We have done a great television investment targeting about which required new documentation. 150 million people. TV advertising results in an immediate 22 September-October 2014 - N°19 - BW Confidential