China is fast becoming the world’s retail capital. Even second and third tier cities are getting their own design hubs which are akin to Europe’s chicest streets in terms of big name presence and shopper willing and ready to drop thousands on the latest must have items.
eighbouring countries, riding this wave of Eastern prosperity, are also experiencing their own luxury booms. As a result, designers who once made the bulk of their income from western markets are increasingly looking to this region of Asia. Luxury footwear, fashion, and leather accessories brand Salvatore Ferragamo is the latest to make the leap, and has recently brought up shares in joint ventures in Korea, South East Asia and Greater China.
According to Ferragomo’s Michele Norsa, chief executive officer of the publicly listed company, “It is part of our strategy to be more directly present in these areas, which are main markets to develop and invest in.”
Norsa also commented on the positive performance of the brand in the last quarter or 2012 as “positive,” even in the wake of the leadership transition which saw many consumers reign in their spending.
As a result of the new investment, Ferragomo’s stake in the “strategic” Chinese marketplace has risen from fifty to seventy five percent. Last year, Asia accounted for a third of the brand’s total sales, and many expect this figure to increase in the future.
