The numbers are not those of the textile-fashion-accessory (Tma), which is worth over 100 billion, but the global leadership of Italian wood-furniture is even more evident and there is no comparison, much less a rivalry, as in the Tma , with France or with other countries. It’s not just a question of the global notoriety of the brands in the sector – this also happens for fashion -, but of a mix of factors: manufacturing tradition, artisan know-how and osmosis with the world of designers and architects, as well explained by Marco Sammicheli, director of the Triennale Museum in Milan, which will celebrate its 100th birthday in 2023 (see Il Sole 24 Ore of 2 April). Design Holding is at the same time the result of this successful mix between manufacturing and creativity and a driving force for further growth, all over the world, of Italian wood-furniture. Since November 2021, the company, which is based in Milan and is controlled by Investindustrial and Carlyle, has been led by Daniel Lalonde, a manager of French origins with extensive experience in the United States, in particular within Ralph Lauren and Lvmh, the largest luxury group in the world.
Profitability was also positive: Ebitda equal to 24.4% of revenues
Design Holding is today the most important reality in the sector and it is because it has built a portfolio of brands that includes Flos, B&B Italia, Louis Poulsen, Maxalto, Arclinea, Azucena, Fendi Casa, Menu, by Lassen and Lumens and which in 2022 has closed the best exercise in its history. «Revenues grew by 25.8% to 867.8 million and strengthen our leadership in the high-end furniture segment», explains Lalonde. Who uses the English term high-end design, in a certain sense untranslatable, because in the Anglo-Saxon sense it includes furniture, furnishing accessories but also lighting, a segment well represented in Design Holding primarily by Flos, which in 2022 launched numerous innovations, also for the outdoors, a sector in very strong growth after the pandemic. Design Holding has grown over the years by expanding its portfolio, but Lalonde points out that the growth in 2022 is double-digit (+15.7%) even net of the acquisition, which took place in 2022, of the Designers Company, the Danish group that led as a dowry the Menu and by Lassen brands. «We are also very satisfied with profitability: EBITDA was 211.8 million, equal to 24.4% of revenues (a very high percentage, difficult to see even in fashion, ndr), the ebit of 164.3 million, equal to 18.9% of revenues. We also generated cash of 153.3 million and in this case the incidence on the EBIT, equal to 81%, should be underlined». Don’t necessarily think that 2023 will see new acquisitions thanks to the data just mentioned: «Never say never, but we think that all our brands have great growth potential in the markets where we are already present, 130 in all, and in others that they are to be explored – underlines Daniel Lalonde -. There are many interesting companies and brands, in Italy and beyond, but we have never made acquisitions to proceed with a turn around, but to allow for faster and more structured growth. In 2023, our attention will above all be on distribution, seamlessly between the three channels, which are direct stores, e-commerce and wholesale». Lalonde is not satisfied with using the word omnichannel, which is used all too frequently; he says that he likes to invite all the people who work in the company “to be agnostic on various channels”, that is, without preferences or prejudices.
From physical design hubs to social media: osmosis drives consumption
«We are experiencing years of great change in distribution: the explosion of e-commerce during Covid was followed by the rebound in physical retail in recent months – specifies the CEO of Design Holding -. I think a new balance will be found, in our world and in that of fashion, with rethinking physical spaces and increasingly simpler online purchases. Digital will also be used in stores, after all, which is why we have called the opening spaces in the United States “design hubs”: customers will find the products of the various brands, but also consultancy from architects and designers and, for example in New York, a coffee”. Lalonde seems to enjoy experimenting with osmosis not only between distribution channels, but also between his work experiences: «Customers of high-end products, whether bags, watches or sofas, have common characteristics and it is even more interesting to observe the new generations of customers, trying to understand if and how priorities have changed». According to the manager, the quality and creativity of the products remain at the basis of the purchasing choices, but two equally important factors have been added, the authenticity of a story and sustainability. «We use Instagram and TikTok above all for this, to tell the tradition, the secrets, the curiosities of our brands – concludes Lalonde -. There are no shortcuts to build a credible DNA, just as there are none to become more sustainable. Some of the Design Holding brands have been publishing sustainability reports long before I arrived or it was mandatory to do so: it is a unique opportunity, an alliance between companies and customers that will only get stronger in the coming years».