Valentino Goes Voom: Brand to Double Sales, Open 35 Stores by 2013
By Alessandra Ilari MILAN ? There may be a global economic slowdown, but Valentino is stepping up the pace of its expansion.
Stefano Sassi, chairman and chief executive of the fashion brand and Valentino Fashion Group’s ceo, remains bullish about the mid- to long-term growth of the brand, where he hopes to double sales over the next five years. He also sees plenty of potential for accessories, more stores and the penetration of new markets.
Sassi discussed future plans for Valentino during a meeting here in the wake of two major events at the storied fashion house last year: the takeover by private equity fund Permira in July and the announcement of Valentino’s retirement.
“These two circumstances accelerated the brand’s development and the idea of broadening the collections that was initially strategized under the Marzotto ownership,” said Sassi, adding he and the Permira management are on the same wavelength as how to grow Valentino.
The company’s current creative setup partly retraces Gucci’s initial post-Tom Ford format, with Alessandra Facchinetti in charge of all women’s ready-to-wear lines and couture; duo Maria Grazia Chiuri and Pier Paolo Piccioli spearheading the accessories division, and Ferruccio Pozzoni, the men’s wear designer since January.
The main points on Sassi’s agenda are:
l To double Valentino’s 2007 consolidated sales of 261 million euros, or $381.4 million, over the next five years by posting annual sales increases of 15 percent.
l To nearly triple accessories sales ? which currently total 50 million euros, or $73 million, over the same period.
l To ramp up the number of directly owned stores to over a 100 from 65 and develop a new store concept, which will be used for key flagship stores beginning at the end of the year. Expanding the retail network is a global, 30 million euro, or $44 million, undertaking, with future openings planned across Europe, the U.S. and Asia.
l To further strengthen the relationship with existing licensees to capitalize on the Valentino name and make sure watches, eyewear, bridalwear and fragrances mirror the brand’s quality.
l To attract a younger, trendier consumer while not losing the brand’s current clientele.
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