The key points
- The company aims to grow in the US, the Middle East and China
- The integration between sales channels is expected to be complete by the end of 2023
- Perfume and eyewear licenses are being studied
The goals are ambitious: doubling 2021 turnover in five years; increase in the share of digital sales, which, in the same period of time, should reach 20-30% of revenues. And, above all, the transformation of a historic Italian maison into a global lifestyle brand that looks to an audience under 4o. Etro, founded in Milan in 1968, began this process at the end of 2021 after the L Catterton fund, in July of the same year, took over 60% of the company for a figure that was never formalized, but which the international press estimated at approximately 500 million euros. 40% remained with the Etro family.
Change of pace
At the helm, Fabrizio Cardinali, a manager with a long experience in the world of luxury, who took up the position of CEO in October 2021. “We are working to give the maison a new breath compared to what it has had in the last 10-15 years, a period in which he sailed at a different speed than other luxury brands – explains the CEO – both in terms of internationality and the public, which continues to be increasingly demanding ». Currently the company is recovering pre-Covid levels – “2021 revenues rose by 25% over 2020 and in the first six months of 2022 we recorded a + 18%”, confirms Cardinali – and a change of pace is underway on more sources, starting with style: in June the creative direction of the brand was entrusted to Marco De Vincenzo. The designer from Messina, who grew up professionally in the Fendi maison, takes care of the creativity of the brand at 360 degrees: from the women’s collections, which today account for 65% of revenues, and for men, in strong growth, to accessories and the home line (produced and distributed by Jumbo group). There are also two important licenses under discussion: perfumes and eyewear.
New creative director
The first collection designed by De Vincenzo, who has already developed the men’s and women’s pre-collections SS 23, will be presented at Milan fashion week on 23 September: “An important debut – says Cardinali – during which we will also launch a product created with the upcycling technique that will be on sale immediately ».
Digital and retail
The see now buy now undoubtedly winks at digital consumers, a basin to which the company looks with great interest and which it has recently “teased” with its participation in the Metaverse fashion week on Decentraland: “The digital channel, in past years , it was approached but not developed. It is managed internally and will continue to be: we will accelerate to increase the share of online purchases and to reach the end of 2023 with a full omnichannel integration of the sales network ”, says the CEO. To seal the intertwining of the virtual and physical sales network will be the launch of a new look for both the site and the stores, expected in both cases in 2023.
Focus on China, the USA and the Middle East
Retail expansion on an international scale is one of the objectives of the new course: “To date, exports absorb about 80% of turnover, with Japan and Europe among the main foreign markets – says the CEO -. Among our objectives, however, there is the strengthening of the presence in Asia and in particular in China. There, at the moment, we have only seven directly operated stores: we will open more and sign an agreement with a local partner. Then the focus is on «USA and the Middle East, where we are about to sign a joint venture».