Salvatore Ferragamo S.p.A.
|Traded as||BIT: SFER|
|Founded||Florence, Italy (1928)|
|Key people||Ferruccio Ferragamo (President)
Michele Norsa (CEO and General Manager)
Massimiliano Giornettti (Creative Director)
|Products||Shoes, leather goods, clothing|
|Revenue||€1,152.9 million (2012)|
|Operating income||€194.3 million (2012)|
|Profit||€125.2 million (2012)|
Salvatore Ferragamo S.p.A. is an Italian luxury goods company, with headquarters in Florence, specializing in shoes, leather goods, and ready-to-wear for men and women. It is the parent company of the Ferragamo Group. The company also licences eyewear and watches.
With about 2,600 employees and a network of over 550 mono-brand stores, the Ferragamo Group runs operations in Italy and worldwide, which provide the brand with a broad footprint in Europe, America and Asia.
Salvatore Ferragamo emigrated from southern Italy to Boston and then California in 1914. He opened the Hollywood Boot Shop in 1923, and made shoes for movie stars such as Joan Crawford and Gloria Swanson, as well as for films such as Cecil B. DeMille's The Ten Commandments. He returned to Italy and set up a shoe shop in Florence in 1927. However, the modern shoemaking company regards 1928 as the date of its foundation and so celebrated its 80th anniversary in 2008. Salvatore filed for bankruptcy in 1933, during the Great Depression, but by 1938 he was in a position to buy the Palazzo Spini Feroni, one of the great palaces of Florence, which now houses the company's flagship store and a museum dedicated to Ferragamo's life and work.
The company flourished after World War II, expanding the workforce to 700 craftsmen producing 350 pairs of hand-made shoes a day. After Salvatore's death in 1960, his widow Wanda took over the running of the business and expanded its operations to include eyewear, perfume, belts, scarves, bags, watches, and a ready to wear clothing line.
The company is currently owned by the Ferragamo family, which in November 2006 included Salvatore's widow Wanda, five children, 23 grandchildren and other relatives. There is a rule that only 3 members of the family can work at the company, prompting fierce competition. To ease these tensions, in September 2006, the family announced a plan to float 48% of the company on the stock market, and since October 2006 Michele Norsa has served as managing and general director. However, as of January 2008, this plan may be on put on hold in the midst of the downturn in the financial market. If the listing on the stock market proceeds, the fund will be directed primarily towards building its positions in China. The company is holding its 80th birthday exhibition in Shanghai.
Throughout its history, the company has been known for innovative designs and use of materials. Such ingenuity goes back to Salvatore's time in California, when he studied anatomy to make shoes which were more comfortable. Notable innovations include the wedge heel, the shell-shaped sole, the ‘invisible’ sandal, metal heels and soles, the 18-carat gold sandal, the sock-shoe, sculpture heels, and the gloved arch shoe created for the Maharani of Cooch Behar in 1938. Metal-reinforced stiletto heels were made famous by Marilyn Monroe. The company is also known for the ‘Gancini’ decoration, the ‘Vara’ patent ballet pump, the Salvatore bag and the use of patchwork. It makes also eyewear and watches in partnership with Luxottica and Timex Group; in 2011 the first line of jewelry Ferragamo was made in collaboration with Gianni Bulgari. Recently, the company launched "My Ferragamo", which is a new addition to the brand, and is being seen by the company as a push for the younger genreration.
Salvatore worked with film stars and celebrities from his earliest days in Hollywood. Clients over the years included Audrey Hepburn, Sophia Loren and Greta Garbo, as well as Andy Warhol, Grace Mugabe and Diana, Princess of Wales. The company made Margaret Thatcher's famous handbags and for King Jigme Khesar Namgyal Wangchuck during the coronation on November 6, 2008 in Thimpu, Bhutan.
In addition to its historical flagship store at the Palazzo Spini Feroni in Florence, Ferragamo has two stores in Milan, two in Rome and 14 in prestigious locations in Naples, Genoa, Turin, Capri, Portofino and Venice.
In Europe, it has a total of 58 shops it directly controls, including a flagship in Paris's Avenue Montaigne and one in London's Old Bond Street. The shops are found in major cities in France, Germany, the UK and Spain, as well as in Brussels, Athens, Monte Carlo, Vienna, Prague and Amsterdam.
Salvatore Ferragamo markets products in North America from Canada to Hawaii, with 25 directly controlled points of sale. In the United States, Ferragamo has 15 boutiques in Arizona, California, Florida, Georgia, Hawaii, Illinois, Massachusetts, Michigan, Nevada, New Jersey, New York, Pennsylvania, Texas, Virginia, and Washington. Of particular note are the flagship stores at Fifth Avenue in New York and at Copley Place in Boston, as well as in Beverly Hills and Honolulu. The company opened its first Canadian store in July 2013, in Toronto. In addition to its free standing stores, there are many shop-in-shops and corners in the department stores in the U.S.
Salvatore Ferragamo recently extended direct control in Latin America by setting up Ferragamo Mexico, which directly handles 20 points of sale in the country including the first flagship store in Latin America. It also has a select distribution circuit in numerous countries, from Venezuela to Brazil, Argentina, Chile, Panama, Colombia and Peru. In Brazil, the Salvatore Ferragamo group has begun in a luxury department store, called Daslu. After that, direct control stores were opened in São Paulo (3 stores) and Rio de Janeiro (1 store).
Salvatore Ferragamo has had directly controlled operations in this key country since the early 70s and can now count on a distribution network of 64 directly controlled points of sale, through Japanese department stores such as Iwataya and Daimaru. It has two flagship stores, one in Ginza, Tokyo, and one in Osaka, opened in October 2004. 27 percent of its revenue in 2005, 575m euros, came from Japan.
Through its Hong Kong headquarters, Salvatore Ferragamo controls its distribution operations in the following 11 countries in Asia and Oceania: Hong Kong (flagship in Canton Road), Taiwan(flagship in Taipei101), China (flagship in Shanghai), India (flagship in DLF Emporio, New Delhi), Korea (flagship in Seoul), Singapore, Thailand (flagship in Paragon), Malaysia (duplex flagship at Pavilion Kuala Lumpur), Indonesia, Doha (The Pearl), Qatar, Australia and Philippines. In 2010 a massive expansion plan was set to expand the presence of Salvatore Ferragamo in the Philippines. The plan includes the renovation of all four stores in Manila and Cebu and the opening of Resorts World Manila Store and the opening of another two stores in 2012.
Officers and management
- Wanda Ferragamo Miletti: has led the group since 1960, when her husband and founder of the company, Salvatore, died. She is currently Honorary Chairman.
- Ferruccio Ferragamo: he is currently President of the Company.
- Michele Norsa: Managing and General Director of Salvatore Ferragamo Italia S.p.A.
- Giovanna Gentile Ferragamo: she is currently Vice President of Ferragamo Finanziaria S.p.A.
- Leonardo Ferragamo: since 2000, he has served as CEO of Palazzo Feroni Finanziaria S.p.A, the family’s holding company.
- Massimo Ferragamo: he is Chairman of Ferragamo USA, the Ferragamo company that has handled the brand’s distribution in North America since Fifties.
- Fulvia Visconti Ferragamo: has run the fashion label’s silk accessories division since the Seventies. She is Vice-President of Salvatore Ferragamo Italia S.p.A.
- Massimiliano Giornetti is the current creative director of the Salvatore Ferragamo brand. He worked his way up from working in menswear to overseeing both men's and women's fashion collections in 2010.
- Salvatore Ferragamo, the company's namesake and founder
Notes and references
- Chevalier, Michel; Gerald Mazzalovo (2012). "3". Luxury Brand Management (second ed.). Singapore: John Wiley & Sons. p. 53. ISBN 978-1-118-17176-9.
- Salvatore Ferragamo celebrates its 80th Anniversary in Shanghai (PDF), Salvatore Ferragamo Italia SpA, retrieved 2008-04-20
- Webb, Tim (2007), "Leonardo Ferragamo: Angels want to wear his red shoes", The Independent (London, published 2007-02-04), retrieved 2008-04-20
- Sherman, Lauren (2006), "When Fashion Goes Public", Forbes (2006-11-16), retrieved 2008-04-20
- Finch, Julia (2008), "Tommy Hilfiger halts flotation", The Guardian (London, published 2008-01-25), retrieved 2008-04-20
- Cartner-Morley, Jess (2008), "From Florence to Shanghai, Ferragamo eyes a makeover", written at Shanghai, The Guardian (London, published 2008-03-29), retrieved 2008-04-20
- Japan is the world's most concentrated source of revenue for luxury brands