leather, FashionUnited news

Furla rolls out US stores

Family-owned Italian leather goods firm Furla is redesigning and increasing its store presence in the US. It will add another 18 stores to its existing 22 stores by next year.

With a new advertising campaign starring Furla executives and employees, the company is adding new models to its selection of bags, hoping to appeal to younger shoppers.

Last month saw the first Furla store opening on New York's Madison Avenue, where the interior is light, transparent and fluid. Prices range from $50 (£28) for a fashion bracelet to $600 for a large leather bag.

“It's very much about flexibility, transparency and lightness,” managing director for Furla USA, Carol DiMaio-Lucas, told WWD about the store concept. “It's moveable, as opposed to static.” This concept was launched in Verona in Italy in fall 2005 and is being implemented in boutiques in Paris, Madrid, St. Petersburg and Shanghai.

“The strategic plan of Furla is to significantly increase turnover worldwide by leveraging the Made in Italy brand equity, a range of lifestyle products in the affordable luxury price range and a network of distribution in the most prestigious locations,” said DiMaio-Lucas.

Furla has 200 international company boutiques.

www.furla.com
6 March 2006

Itochu acquires Antichi Pelletieri

The Itochu Corporation has acquired a 3.3 equity stake in Antichi Pellettieri, the leather goods division of the Mariella Burani Fashion Group. Itochu purchased the stake for €10 million (£6.8 million).

The two partners already have long-standing relationship, which is now solidified by this transaction. It also provides the MBFG with an experienced business partner with extensive distribution capabilities in Japan and other Far Eastern countries.

The finalization of the deal is dependent on the acquisition of control of leather goods brand Coccinelle. In February of this ear, Antichi Pellettieri announced it had acquired 51 percent control in the brand. The deal is expected to be finalized in mid-April, pending approval from the Austrian and German antitrust authorities.

Over the past four years, Antichi Pellettieri realized an annual growth of 22 percent and earnings before tax and interest of 23 percent.

The division represented 31 percent of the consolidated group revenue last year. With the acquisition of Coccinelle, AP will generate 40 percent of group revenues.

MBFG currently has 241 stores world-wide, including two directly owned Braccialini stores in Hong Kong, seven franchises of the Braccialini, Baldini, Francesco Biasia brands in Shanghai, Hong Kong and Seoul, three Coccinelle stores in Singapore and Tokyo and 33 shop-in-shops.

Itochu Corporation is one of Japan's leading trading companies with a worldwide network of over 670 companies in 80 countries.

www.mariellaburani.com
1 March 2006

Bally breaks even

The Swiss leather and fashion brand Bally is in a celebratory mood, having finally recovered from run of several years in the red."We had some great news last year. We broke even," said Bally CEO, Marco Franchini, who was head hunted from the Gucci Group three years ago to turn around the struggling fashion house. Franchini is responsible for a different strategy at Bally. Instead of focusing on the turnover, he has set his sights on improving margins and he is now reaping the benefits. The label achieved a double-digit increase in operating margins last year, thereby returning to profitability.

"Our goal is to grow by between 15 and 20 per cent this year, and the results for the year so far show that we are going to achieve our projections,' Franchini told FWD. Last year Bally achieved sales of approximately € 300 million (GBP 203 million), so 15 per cent would mean a growth of € 45 million per year.

Franchini plans on expanding the company organically. "We already had an excellent network of stores, the key thing was updating their look and getting the right product in there," he said. As part of it's updating strategy the key flagship Bally stores are being refurbished using more wood, lighter colours and a brighter, lighter atmosphere.

Bally's new menswear collection was presented last week Monday in Milan. "This season we are emphasizing Acapulco," said accessories designer Johnny Coca. The label is concentrating more on its accessories business than on fashion, although the latter received exuberant reviews from FWD's Godfrey Deeny. Founded in 1851, the Lugano-based company was bought out by US private equity firm Texas Pacific Group in 1999.

www.bally.com
4 July 2005

BLC offers shoe testing

The UK firm BLC Leather Technology Centre is using its considerable experience of leather and restricted substance testing to develop a package of whole shoe and footwear component tests. The company has recently been awarded UKAS accreditation for this sector.

Furthermore, BLC has invested a large amount in its new footwear testing facility. It now provides the capability to measure the performance of footwear in order to ensure that it meets the general standards of quality and safety.