Game on Ferragamo

New in India, Ferragamo makes a quiet beginning by playing on its brand heritage.

You couldn't be further from the truth if you, along with so many others, were under the impression that the house of Salvatore Ferragamo was predominantly a male brand.

To the contrary, it started off with founder Salvatore Ferragamo, an Italian immigrant, playing shoemaker to Hollywood's leading ladies in the 1920s.

So reminds daughter and vice-president, Salvatore Ferragamo Italia SpA "" Fulvia Visconti Ferragamo at the recent launch of their flagship store in Mumbai.

She offers an explanation for the confusion, "Maybe its because, traditionally, Indian men travelled a lot more on business to Europe than Indian women, and what they typically brought back were Ferragamo ties and men's shoes. Accessories are actually only 9 per cent of our total business."

It was only after the founder's death in 1960, that the brand reallocated its resources to an expanded product stable, and from making 350 handmade shoes a day, Ferragamo became a complete fashion house, starting with the production of leather goods, and then in the 1970s, compelled by Visconti-Ferragamo, silk accessories and bijoux, and only much later "" clothes.

Today handbags are inarguably the new shoes, and leather bags' contribution to company revenues at 29 per cent is inching closer and closer to the revenue contribution of shoes, at 38 per cent.

The Fiera collection (bags starting at some Rs 45,000), inspired by the sights and colours of the Savannah, occupies pride of place in the store, spilling over onto the shop floor as over-sized cut-outs of brightly coloured wild animals.

"The group is focussing on younger, more creative designs," says Domitilla Lanzacco, head of international PR. The other convergence of interest is towards the company's wholly owned perfume business Parfums SpA, started in 2001, which is currently at 5 per cent of total revenue.

The Salvatore Ferragamo Group, incidentally a wholly owned family business, closed the year 2005 with total sales of Euro 575 million, up 12 per cent on 2004. Salvatore Ferragamo products are sold world-wide through over 450 points of sale, of which 221 are directly operated.

Rishab Soni, managing director, SSIPL Luxury fashion, that won exclusive distributor rights to the brand in India says there will be two additional stores opening in Delhi and south Mumbai by the end of this year.

"We could've done with more prominent placement," says Salvatore Ferragamo, grandson of the founder, gesticulating to the slightly modest location flanked by two luxury leather goods stores.

The near-full luxury shopping area at the Grand Hyatt, Mumbai, has little choice for late(r) entrants. And it's certainly no Fifth Avenue.

But that's what luxury brands have to contend with for the promise of what everybody agrees is an exciting new market. Like Lanzacco says, "China already has 30 Ferragamo points of sale. India has some catching up to do."

Are we luxury loyalists yet?

Good question. And opinions differ. For Rishab Soni, managing director, SSIPL Luxury Fashion, India distributor for Ferragamo, brand awareness for foreign luxury brands is very strong, but brand loyalty will take a couple of years to develop, once consumers get a chance to sample the offerings of each brand.

Salvatore Ferragamo, grandson to founder "" Salvatore Ferragamo: "Our observation is that Indians are very brand loyal when they're holidaying abroad, they go to their favourite stores year after year. The idea is to now allow them to finally be able to do the same at home, in India."

Charu Sachdev, CEO, TSG Marketing, India distributor for Moschino: "Initially we had a lot of customers who were already buying Moschino internationally with existing brand loyaly. But if we want the market to grow, we need to focus on new customers buying into the brand. We're working on educating people through our campaigns, to help them understand the brand identity, the lifestyle it represents,and then come in and sample it. All the brands should be focussing on getting people to make that first step into the store. You'll be surprised at how many people who can afford luxury brands are intimidated to step in."

Tikka Shatrujit Singh, Brand Advisor, Louis Vuitton India: "We have all categories of customers, past users, new users and new converts. Younger customers tend to experiment with a range of brands. Loyalty will depend on the brand fits into each individual's scheme of style."

And, "Once we have the right size of retail space available, which will possible be Delhi by the end of the year, LVMH in India will reflect the entire range of products, including clothes. Then our loyal customers can indulge in the ultimate style statement "" a whole ensemble from one brand."