Furla teams up with Li & Fung to take over China

The Italian premium leather goods and fashion accessories

retailer Furla has announced the agreement with Hong Kong-based Fung Holdings Ltd to distribute its products in China, Hong Kong and Macau with immediate effect, aiming to open over 100 boutiques in the next four years.

Despite Furla said it would hold a major stake in the venture, none of the parties provided financial data.

The Italian company has stressed how critical to the achievement of these important goals, the expansion in the markets of Asia Pacific and the development of the travel retail and e-commerce. The Italian brand is aimed to set a strong footprint in the Asia Pacific region, with its policy of expansion strongly supported by an agreement with Thai Central Marketing Group (CMG), a division of the multinational distribution Central Group, to enter Thailand. The fashion house has also announced the opening of its first flagship store in Bangkok, while first mono-brand store in Mumbai is also in their pipeline.

Furla has just reported strong growth in 2012 with a turnover of 212 million euros or 18 percent increase compared to 2011. The data also showed a positive trend in profitability, as the operating profit of the company hiked by 28 percent. In 2012, EBITDA reached 32 million euros (+15 percent). It’s noteworthy that the performance of foreign sales has increased considerably compared to 2011, reaching weigh 76 percent of total sales, and thus confirming that Furla’s growing business scope has shifted towards international markets. However, Italy, with a 24 percent stake, continues to maintain a strong performance.

Fung Holdings (1937) Ltd, a privately held business entity controlled by the Fung family, is the parent of global supply chain manager Li & Fung Ltd.