Gianfranco Ferre Seeks Growth With Product Diversity

Massimo Macchi, the newly appointed chief executive officer of Ferre is focussing on accessories to bring more profitability to the company. In 2004, Ferre reported sales of 143 million euros, up 22 percent compared with 2003, and Macchi expects a 10 percent yearly growth over the next five years.

According to WWD, Italy is one of Ferre's main markets, accounting for 35 percent of sales. The rest of Europe, including Eastern Europe and Russia, accounts for 34 percent of sales, with Russia increasingly emerging as a strong market. Macchi said the company is working on rebalancing its geographic markets, pushing business in the U.S., which today accounts for 9 percent of revenues, and Asia, which accounts for 15 percent of sales. Macchi views the accessories division as a means to further penetrate the American market.

The signature line is available at eight brand stores, 45 franchised stores and 700 points of sale around the world, down from 1,000 a few years ago - a consequence of a more selective distribution. GF Ferre is available at 10 franchised boutiques and 600 multibrand stores. For his part, Macchi clearly maps out his next steps: "My immediate goals are to correctly position our labels, aggressively expand the accessories division and strengthen our communication."

Next up is the development of a handbag to become the classic bag that will identify the brand in the leather goods arena. Ferre is working with Sergiolin, a renowned leather goods company here, and the new bag should be ready by the end of the year. "Many monothematic brands expanded into other categories, such as Gucci, for example," said Macchi. "Our core business is clothing, and we need to diversify the other way around, but I believe it's simpler and more natural to go from clothing to accessories."

He added that he wants accessories that can stand on their own and are more approachable. "We want to offer larger collections: shoes, for example, with heels in different heights, not only runway stiletto shoes. They'll still be high-end, but less couture-like."

While courting a younger clientele with its GF Ferre line, the company also is pushing for exclusivity. For fall, it introduced a special-order service that allows customers to choose designs from a selection of Ferre's evening gowns in different variations. Also, by the end of the year, the company will offer a custom-made service for men at its brand stores. "Custom-made is in Mr. Ferre's nature," said Macchi.

Industry sources speculated earlier this year that the designer was mulling the idea of launching his own couture line. Macchi said this project was not in the works right now, but did not rule it out for the future. "If and when an element becomes important for a company, things can change - we must always be flexible," he said.