Salvatore Ferragamo changes the game in Asia
In this article (5)
Italian fashion label Salvatore Ferragamo has taken over four JVs created in partnership with Trinity (Fung Group), which distributes the brand in South Korea and Southeast Asia.
Ferragamo says it has bought the companies’ 20 per cent share, still owned by Trinity through Trinity Luxury Brands Holdings and Ferrinch. The value of the transaction has not been disclosed.
Impacting Ferragamo Korea, Ferragamo (Malaysia), Ferragamo (Singapore) and Ferragamo (Thailand), the takeover follows an agreement signed in 2012. This included a purchasing option allowing for Salvatore Ferragamo to take full control of the JV companies.
At the time, Ferragamo had already increased its stake in the four companies to 80 per cent.
In the past few years, the Asia-Pacific region has become Salvatore Ferragamo’s main market, accounting for 35.5 per cent of its global revenue. At the end of September, the label’s sales in the region amounted to €360 million (US$375 million), equivalent to a 0.3 per cent decrease compared to the first nine months of the previous fiscal year.
The label has 70 monobrand stores in the region.
Questions & Answers
Q.Which specific companies within the Ferragamo group are affected by this change in ownership?
Which specific companies within the Ferragamo group are affected by this change in ownership?
The takeover impacts Ferragamo Korea, Ferragamo (Malaysia), Ferragamo (Singapore), and Ferragamo (Thailand). These are the four joint venture companies where Salvatore Ferragamo has now taken full control.
Q.When was the original agreement signed that allowed Ferragamo to take full control of these joint ventures?
When was the original agreement signed that allowed Ferragamo to take full control of these joint ventures?
The takeover follows an agreement signed in 2012. This earlier agreement included a purchasing option that specifically allowed Salvatore Ferragamo to eventually take full control of the JV companies.
Q.How significant is the Asia-Pacific market to Salvatore Ferragamo's overall business?
How significant is the Asia-Pacific market to Salvatore Ferragamo's overall business?
The Asia-Pacific region is Salvatore Ferragamo’s main market, contributing 35.5 per cent of its global revenue. Sales there reached €360 million by the end of September.
Q.What was the recent sales performance in the Asia-Pacific region for Salvatore Ferragamo?
What was the recent sales performance in the Asia-Pacific region for Salvatore Ferragamo?
Sales in the Asia-Pacific region amounted to €360 million by the end of September. This represented a 0.3 per cent decrease compared to the first nine months of the previous fiscal year.
Reader pulse
Ferragamo taking full control in Asia: Smart move or too risky?
16,195 votes so far