Ferragamo focuses on Middle East

Italian luxury accessories maker Salvatore Ferragamo is turning its attention to the Middle Eastern market for expansion, after the European markets proved a disappointment to the Florence-based brand. Last month the company said it would invest at least €18 million (£12.4 million) in the opening of directly-owned shops this year.

Ferragamo plans to work together with its exclusive distributor in the Middle East Emirati accessories to build a presence in that market. “We have been pushing growth in this region for three years,� said Ferragamo chief executive Ferruccio Ferragamo. “We see potential for double-digit sales growth. In 2005, growth in the Middle East was 25 percent and it will be even better in 2006.� The company expects turnover for 2005 to increase 13 percent to €581 million.