Eight new Chinese cities for Ferragamo

Italian luxury brand Salvatore Ferragamo is to ramp up its China expansion with plans to enter eight new cities over the next three to five years.

The plans were triggered by the increasing number of new shoppers in China. Last year, urban households recorded a 14 per cent surge in disposable income to about 21,810 yuan (US$3450) as shown by National Bureau of Statistics.

Currently, Ferragamo has 58 stores in 33 cities across China. In July, the luxury brand is scheduled to open stores in Jinan and Wuhan in central China.

“Every year there will be millions of new people who will get access to luxury goods. This is really the potential for the luxury industry,” said CEO Michele Norsa.

While economists are foreseeing an economic weakening in China, Norsa said the company is confident in the growth opportunities they see in China. Global management consulting firm Bain & Company nominated Ferragamo as the top shoe choice of shoppers in Shanghai and Beijing in 2011.

The Florence-based luxury brand is optimistic that this year will bring excellent sales despite China’s economic weakening and Europe’s debt crisis.

In China, Ferragamo competes with Compagnie Financiere Richemont SA and LVMH Moet Hennessy Louis Vuitton SA.

GB

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