Retail in Asia

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Cucinelli clocks double-digit growth on ‘quiet luxury’ trend in China, Ferragamo fails to impress

Italy’s Ferragamo and Cucinelli announced their respective trading updates for the first nine months of 2023, with Ferragamo posting double-digit declines in Asia and Japan, contrasting to Cucinelli’s sale surge of 50 percent in Asia, thanks to China.

SEE ALSO: Cucinelli Asia revenues ramp up 56% on ‘great result’ in China

Luxury brand Cucinelli revenues for the nine months ending September 30 amounted to EUR 818.4 million (USD 867.87 million), up 28.8 percent, with double-digit sales growth in area geographic areas, compared to the first nine months of 2022.

In Asia, Cucinelli clocked EUR 218.57 million, up 49.7 percent on 2022, to become the Umbria, Italy-based firm’s second-largest market behind the Americas.

The growth in all Asian markets was “very significant,” with China now accounting for about half of the total business in the region, according to the firm.

“We are convinced that the Chinese customer increasingly appreciates the purely ‘silent’ taste of our collections, rewarding their exclusiveness and positioning at the very top end of the market, with a particular focus on clothing,” said Cucinelli in a press release.

“Hong Kong’s results were very interesting, with a strong component of foreign visitors coming mainly from China and other Asian regions. Positive outcomes were attained in Japan and South Korea, primarily due to domestic demand and the contribution of tourism. Finally, the growth in Middle East benefited from purchases made by both local and foreign clients, whose interests and activities are based in the Gulf countries,”

Contrastingly, fellow Italian luxury brand Ferragamo reported total sales of EUR 844 million for the first nine months of 2023, down 9.2 percent in constant exchange rates, compared to the prior-year period.

Asia Pacific, the Florence-based firm’s largest market, registered a 16.4 percent decrease in net sales to EUR 263.92 million, while the Japanese market fell 11.6 percent to EUR 64.36 million.

“The overall sales performance reflects, at this stage, the ongoing focus on quality of sales and rationalisation of distribution networks, as well as the evolution of the offer and the acceleration of the transition to the new creative course, the full potential of which, will become evident in 2024,” said Marco Gobbetti, chief executive officer and general manager, Ferragamo.

“The optimisation of the product portfolio and the enhanced marketing activities are continuing to strengthen the brand and to create engagement with existing and new audiences.”