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The interior of Furla’s flagship boutique at the Milan Duomo |
Furla plans to open over 100 boutiques over the next four years in more than 40 cities in Greater China, the Italian family-owned fashion company has announced.
Furla said it had teamed up with the Fung Group through Fung Capital Asia, the private strategic investment arm of the families of Victor and William Fung, to tap the growing demand of Chinese consumers for products with a strong heritage.
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A bag from Furla’s Spring/Summer 13 collection |
As part of Furla’s strategy to expand in Greater China, the company launched its first new concept store in Hong Kong in August 2012 and negotiated the early takeover of distribution rights from previous local partners.
From 1 February 2013, Furla will manage distribution in Hong Kong, Macau and China through its joint venture with the Fung Group, in which Furla holds a majority equity stake. The company said it had recorded “exponential” growth in Asia, with 76% of its 2012 turnover coming from international markets.
Furla President Giovanna Furlanetto said: “We wanted to boost our development in Greater China following the successful launch last year of our new retail concept in Hong Kong and the strong response from Chinese consumers to our current network of 20 directly owned stores.”
She added: “In Fung Group, we have found a partner whose pedigree is similar to ours. We are both family-owned companies with a proud heritage – 106 years for the Fung Group and 86 years for Furla – with similar values and a vision to bring the highest quality products to the discerning Chinese consumer.”
Fung Group Chairman Dr Victor Fung said: “We have great respect for the Furla business culture and we look forward to developing the Furla brand together with our retail businesses.”
Fung Capital Asia Managing Director Jose Cheng added: “China’s expanding premium fashion market represents tremendous potential for Furla with its emphasis on quality and contemporary design underlined by timeless elegance and authentic Italian craftsmanship.”
The joint venture is not with Li & Fung Limited and is also unrelated to any of the other Fung Group’s listed companies, Furla noted in a press release.
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The exterior of Furla’s flagship boutique at the Milan Duomo |
Rapid growth in 2012 turnover
Furla has forecast +18% growth in turnover to €212 million for 2012 compared to the previous year.
Travel retail has witnessed a +93% surge in turnover from the previous year, the brand said in a press release.
Total turnover has jumped by +35% in the last two years, buoyed by the brand’s expansion in Asia Pacific and the development of travel retail and e-commerce, which have all been “instrumental” in this rapid growth, the company said.
Furla noted that 2011 was also an “excellent” year for the brand. The figures also indicate a positive trend in profit with a +28% upswing in the company’s profit margin. In 2012 EBITDA reached 15% (equal to €32 million), compared to 14% the previous year.
Turnover generated overseas saw a notable increase from 2011, accounting for 76% of total sales, proof that the core of the business is increasingly shifting towards international markets, according to the firm. The Italian market, with a 24% share of sales, also continues to fare well, Furla noted.
“The expansion in the Asia Pacific markets and the development of travel retail and e-commerce were decisive factors in meeting these significant targets,” said Furla.
In Asia Pacific, Furla said it had developed a dynamic market penetration strategy. “A good example of its policy of expansion is its entry into Thailand thanks to the agreement with the prestigious Thai partner, Central Marketing Group (CMG), the distribution division of the multinational Central Group. Marking the start of the agreement was the opening of the first Furla flagship store in Bangkok. Further proof of Furla’s growing presence in the Asia Pacific region was the inauguration of the first mono-brand store in Mumbai, India.”
Travel retail – a key area of development
Another key area of development is travel retail, which has witnessed a +93% increase in turnover from the previous year. Today Furla distributes its special unisex business travel collection in 35 countries, with a total of 120 stores in major airports worldwide.
E-commerce, which has seen a +158% jump in sales, and the widespread distribution of the brand internationally have both played a key role in the brand’s rapid growth. Today, Furla is present in 71 countries with five subsidiaries in France, Hong Kong, Japan and the US. 80% of distribution is retail, with 320 mono-brand stores (156 Furla boutiques and 164 authorised retailers), and 20% wholesale through 1,290 selected multi-brand and department stores.
The company, which is still wholly owned by the Furlanetto family after more than 80 years, said it was sharing its new successes with all its employees. “All the people from around the world who have helped contribute to the growth of the company through their work received a bonus in 2012 for the 2011 profit of €1.5 million,” it said.
Furla employs 925 people worldwide, spread across 71 countries – some 95% of whom are women. Furla said it had “firmly established itself as a woman’s company, not only because its products are expressly designed for and targeted at women, but also for its investment in them on a professional level”.
About Furla
An Italian, family-owned company founded by Aldo Furlanetto in 1927 in Bologna, Furla exports to 71 countries, with 320 single-brand boutiques, 1,290 points of sale in department stores and specialist stores, five subsidiaries in the US, France, Japan, Hong Kong and Korea, as well as distributing online through its own e-boutique.
About Fung Group
Fung Holdings (1937) Limited, a privately-held business headquartered in Hong Kong, is the major shareholder of the Fung group of companies, whose core businesses are engaged in trading, logistics, distribution and retailing. The Fung Group employs over 41,000 people across 40 economies worldwide, with a total revenue of over US$21.14 billion in 2011.
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