Furla and Longchamp-quiet success story

Furla and Longchamp-quiet success story




In the past 12 months, as the global luxury market has developed strongly and made up for some of the glory lost in the past few years, many are made up of sensational companies that have made a remarkable recovery or launched New strategy. However, although this Cinderella story has been affecting public narratives, there are still many companies that do not have to wait until 2017 to issue double-digit returns. In fact, they experienced a very good downturn.

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They are just not very sexy brands, so people don't pay attention.






European and privately owned middle-market brands (such as Furla and Longchamp) have long operated under fashion radar. Now, these fast-growing parts companies are under increasing scrutiny because competitors are watching their expansion efforts and trying to figure out the secret of their success-and view it as a possible acquisition.






However, the grandson of Longchamp CEO and founder Jean Cassegrain said: "We will never sell our brand. Our independence allows us to make Longchamp the company we are today." In 2016, sales were 553 million euros (642.5 million US dollars).






Longchamp is mainly known as Le Pliage, which is a nylon tote bag in various colors. The large size of the brand's online store is $145. (Retail analysts estimate that 11 bags of luggage are sold every minute.)






The brand was founded in 1948 by Cassegrain's grandfather (also known as Jean) in Paris and is one of the few luxury brands owned and operated by the family. Cassegrain’s father, Philippe, served as chairman, and his mother, Michelle, led the brand’s European stores until her death in December. His sister Sophie Delafontaine is the artistic director, and his brother Olivier is the general manager of retail in the United States. He has been supervising the construction of the 4,000 square foot store on Fifth Avenue. The store is scheduled to open in spring.






The company has more than 300 stores worldwide and opened a flagship store in Tokyo last month (Japan is the brand's third largest market).






Cassegrain said: "As a family-owned company, we can really think about long-term and make large investments when needed, without having to report every profit or loss or keep sending good news to the stock market." "This is a luxury. In the trading environment, there is no one worth giving up."






A report released by Bain & Co. last month showed that the global luxury goods market has entered a recovery mode after several years of stagnation, mainly driven by shoppers born after 1980. However, department store brands continue to decline, buckling stores, digital competitors, and e-commerce platforms' growing dominance under poor pressure. High-end luxury brands perform much better-Gucci is a good example-although companies that focus on low-end prices seem determined to promote growth through acquisitions.






Competition between North American competitors Tapestry (not known as the Coach of its main leather company until last month) and Michael Kors (both brands are eager to transform themselves into a leading multi-brand power) is no better than this Better packaging. The global luxury goods sector (and appease anxious investors) has a broad label portfolio to meet a wide range of bank balance needs.






One can only imagine what they think of Furlanetto, an Italian accessory brand controlled by the Furlanetto family. It celebrated its 90th anniversary this year, and like Longchamp, it continued to expand silently, and its speed has consistently envyed many competitors, doubling its turnover in the past three years.






After record revenues and profits in 2016, the company announced that sales in the first half of 2017 surged 23.5% to 238 million euros, thanks to the opening of stores and strong travel retail sales. (In the same period, Asia's revenue increased by 63%.) Like Longchamp, Furla is committed to developing a distribution network, operating its own stores in appropriate places, and avoiding discounts and the attractiveness of discounts.






"Obviously, with the help of an owner who is fully supported by everyone, we are very strategic in terms of expansion, but this growth is indeed in the attractiveness of our products," Alberto, who was appointed CEO · Camerongo said he will be the general manager of Furla six years later.






Recently, the brand is known for handbags (for example, Metropolis handbags are priced at $448 in the Furla online store), and the brand has added shoes, scarves and watches to its collection. Camerongo said: "We think the new product is doing well, is to enhance shoppers' awareness of our brand, rather than weaken it."






Unlike Coach and Michael Kors, who did not invest too much energy in the importance of manufacturing provenance, the "Made in Italy" label is still at the core of Furla's philosophy, helping to enhance its aura of exclusivity.






Camerongo said: "I think the power of heritage may be underestimated." "Especially in new markets, the fact that we are proud of the Italians continues to remain hugely attractive."






Mr. Cassegrain of Longchamp agreed. He said that the vast majority of goods are produced in the company's factories in the Loire Valley in France, which is of great significance to foreign customers. (He mentioned that sales in China increased by 50% last year).






He smiled and said: "We are proud of our roots and origins, but we are not as indifferent and indifferent as other competitors." "We prove that European brands can also provide something warm and happy but practical. Chic and Casual cross-generation and cross-use packages are identities that anyone can use, even in some cases it looks a bit outdated."






Although the brand has recently been involved in high-priced leather products and garments, Mr. Cassegrain emphasized that his core spirit-mainly based on manufacturing costs rather than market expectations-will not change in the short term.






Mr. Camerlengo of Furla said: "No matter where you run your business, no matter who you are after, luxury rooms are still very tribal.






He said: "But in an increasingly complex world, people want to be more specific and personalized in the messages sent when using your products." "This is to show that you have the right attitude. We believe that we Of our family values ​​put us firmly on the right path."