Ferragamo wants to protect its chain, OTB wants to buy it

Ferragamo wants to protect its chain, OTB wants to buy it

Ferragamo wants to protect its chain. Meanwhile, OTB wants to strengthen its one via acquisitions. The supply chain of large Italian fashion groups is an asset of paramount importance, also due to the crisis caused by the pandemic. Nobody wants to see it weakened, or worse, destroyed. And so many luxury brands have enacted concrete strategies to safeguard their chains. Here are the opinions of Michele Norsa, executive vice-president with Salvatore Ferragamo, and of Ubaldo Minelli, CEO of OTB. The two managers made statements during the “Capitale della Moda, Capitali per la Moda” meeting. Large brands compared ideas related to the protection and tutelage of the quality chain in Italy, during the event organized by Class Editori.

Ferragamo wants to protect its chain

“If we aren’t protecting our chain, we aren’t protecting the entire fashion system – said Mr. Norsa (in picture on the left). Ferragamo manufactured over 95% of its products in Italy, thanks to an extremely stable supply chain that has been operating for over 100 years. The brand has built excellence and created a way to manufacture innovatively in every phase, thanks to these suppliers. Protecting the chain means taking actions at a financial level, meaning to offer organizational support or new financing options. “The Italian chain is a guarantee for sustainability and innovation – continues the manager, explaining that Ferragamo’s performance – has had a very positive start in some geographic areas. In China, the brand has recorded double-digit growth and new investment opportunities (shopping malls). The United States have recovered quickly, thanks to the incoming capital and vaccination campaigns, while Europe is still very influenced by the lack of tourism”.

Minelli’s intentions

“We are currently evaluating a series of opportunities and, without a doubt, there are many within the downstream manufacturing chain, as well as inside the distribution one – said Ubaldi Minelli (in photo on the right) -. We are taking care of the production chain, which is one of the most important assets for our business model. If the chain isn’t healthy then we also have a problem”. Diesel makes 30% of its collections in Italy, while other brands of the group (Maison Margiela, Marni, Viktor & Rolf, Amiri) manufacture more than 90% in Italy. OTB supported the chain with the Cash Initiative (acronym for Credito Agevolato Suppliers’ Help), which started in 2013 from Staff International, the manufacturing arm of the OTB group, and further strengthened last year.

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