Borbonese returns to profits, investing in new markets and product lines

Borbonese’s CEO Giuseppe Di Nuccio isn’t a fan of the phrase “accessible luxury”. But, for the lack of a better term, he explains that this segment is where the historical brand is positioned. «One of the most useful things that a manager can do is visit their stores or otherwise find out about their clients’ behaviors from their employees — explains Di Nuccio –. My greatest satisfaction came from finding out that people often enter, look around, and ask about a price—and they’re pleasantly surprised by the response. The perceived quality of our products is very high, and this causes them to expect a very high price.»

Di Nuccio joined Borbonese in 2012 in order to relaunch the historic brand, which began in Turin in 1910. Due to several difficult years, the company had lost turnover and market shares, and accumulated losses. In his many years at Prada, the CEO created a turnaround by emphasizing the brand’s heritage and working on a book that divulges Borbonese’s essence. The result of this was the Inspirations photo book, edited by Ginevra Elkann, which was presented at Milan’s Fashion Week in September 2015. «There are some brands that capitalize on certain decades. Borbonese has nearly 110 years of history: this should be memorialized by telling this history in new ways,» Di Nuccio explains.

From storytelling to numbers: «In 2016 we got returned to net profits and our Ebitda was €4 million, with €31.5 million in turnover. For 2017 we predict €40 million in revenue, a €6 million Ebitda, and €2 million in net profits. In 2018, we should reach €50 million: the critical threshold for competing on a global level,» he adds.

Their quality-to-price ratio is due to the company’s artisanal and stylistic know-how. Their prototypes and some of their production is made in Bologna. In 2016, they opened a monobrand store in Milan just a stone’s throw away from the fashion district, where they also displayed their Borbonese Global Living home line (which has been licensed to Zanaboni since 2014).

«We’re very happy with this segment, which is perhaps the most important one for presenting Borbonese as a lifestyle brand—not just a fashion or purse brand», states Di Nuccio.

The Mambrini family, Borbonese’s owners, share this medium-to-long term point of view, as well as their plans for turning the company around. The licenses have been on Giuseppe Di Nuccio’s to-do list ever since he joined the company, but it’s taken time to find the right partner for their eyeglasses line. «We were looking for the right-sized company for Borbonese, one which had ‘Made in Italy’ quality in their hearts», Di Nuccio concludes. «We made a deal with the Marche-based Jet Set, who also produce lines for Laura Biagiotti and Byblos. The first sunglasses and eyeglasses lines will be presented at SILMO in Paris, and then at MIDO in Milan, in 2018.»

E-commerce has proven quite strategic, as it could account for 15% of the company’s sales by the end of 2017.Read more at:red carpet dresses | mermaid prom dresses


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