Ferragamo, famous brand of italian shoes, confirmed the rise in prices for its products in Europe in a desire to align its prices on all the different markets within which it evolves.
A new policy on prices for Ferragamo
Michele Norsa, current CEO of the italian brand, announced that their prices would be increasing on the European market. This estimated raise of 2% is the consequence of many internal discussions concerning current prices on the European and the Asian markets. Indeed, Norsa explains that the price difference between Europe and China is too high.
“China will be the best market for luxury brands in the coming years and will also be our main market in Asia,” Norsa continued.
Accordingly, Ferragamo will raise its prices in a number of major European cities whilst hoping that taxes will not be exeedingly high. The hope remains that governments will reduce taxes or at least that they will not go above 15 or 20%. Otherwise, this could become a serious problem for the Italian luxury brand.
Ferragamo, focus on the Chinese market
The Asian market currently represents more than 36% of the brand’s sales. Hence, it has become crucial to cultivate this market. Although sales in China of Ferragamo luxury goods have increased by 20% during the past 24 months, retail sales have slowed down.
Indeed, Chinese tourists prefer buying their Ferragamo goods in Europe or in the US where prices are lower as opposed to China, where local taxes inflate prices. Accordingly, evening out prices in the European and Chinese market has become a necessity.
Ferragamo, amongst Italy’s best known brands, launched a few months ago opened a new Maison de Mode in the Chengdu province and is planning on opening other points of sale.
Due to their success, the brand has also recently launched a new fragrance for women.