Renzo Rosso is ready to continue shopping on the fashion market. In other words, it wants to strengthen OTB, which he defines as an “alternative luxury group”. But his thoughts go beyond that. One of the most important challenges we face is that of transforming Jil Sander in a profitable brand. How? By flipping the trend of the last 20 years. First objective: triple, if not quadruple revenue.
Jil Sander’s path
Jil Sander was controlled by Prada from 1999 to 2006. Then it went to London-based fund Change Capital Partners and, in 2008 (for 167 million euro), to Onward Holdings. In March of this year it joined OTB for the same 167 million euro purchase. “It was a brand I had been following for many years”, said Renzo Rosso during the Business of Luxury Summit organized by the Financial Times. The problem is that Jil Sander has, for the past 20 years or so, often been (if not always) in red.
That’s how I will triple revenue
The entrepreneur from the Veneto region already has a cure. First of all, revenue needs to “triple, or quadruple”. This means widening the retail chain, currently made of 44 stores, specifically with a focus on China and the United States. Then, “developing areas of the collection that, in the past, weren’t explored”. Mr. Rosso points out that he “doesn’t plan on changing the creative team. What we need to change, or rather strengthen, is management”.
Not the first time
In other words, OTB could replicate the activity done with Maison Margiela, on Jil Sander. The former brand widened its product offer by adding footwear, handbags, belts and perfume. This vision is in line with Renzo Rosso’s philosophy, points out Mario Ortelli. He believes that OTB can’t create marketing and distribution synergies as LVMH and Kering do, but as reports the Financial Times, “while many groups are guided by brand management and distribution activities, Mr. Rosso is more focused on product and creative process”.