Ferragamo改革之路：业绩未如人意，何处是突破口？

Ferragamo, the Italian luxury brand under the leadership of creative director Maximilian Davis, continues to face challenges in its performance. Recently, Ferragamo announced its performance for the first half of the 2023 fiscal year. In the six months ending on June 30, the brand's sales fell by 7.2% to 600 million euros, and operating profit plummeted by 65.4% to 47 million euros compared to the same period last year.

It is worth noting that the first batch of products designed by Maximilian Davis, who took office as creative director in March last year, were officially launched at the end of February this year. In other words, the current performance data is the first report card handed in by Maximilian Davis.

Since the appointment of the new creative director, Ferragamo has embarked on a bold reform, focusing on the rejuvenation and modernization of the brand's style.

Firstly, Ferragamo invited renowned British graphic designer Peter Saville to redesign the brand's logo. The simple and elegant serif font not only conforms to modern aesthetics but also retains the brand's inherent elegance. The new logo immediately conveyed a message: Ferragamo does not want to be seen as a product of the old world and will present a new style image.

Indeed, Maximilian Davis' debut collection for Ferragamo in the Spring/Summer 2023 season completely changed the public's perception of the brand as outdated. Inspired by Hollywood culture and the captivating color palette of artist Rachel Harrison's 'Sunset Series,' Maximilian Davis presented a modern and minimalist collection. The collection featured clean and sharp lines, interspersed with the casual elegance of Italian style, as well as elements of gender neutrality and functional style, revitalizing Ferragamo with a new vitality.

More importantly, unlike some other industry creative directors (such as Hedi Slimane at Celine), Maximilian Davis did not completely disregard the brand's history when he took office. Instead, he drew inspiration from Ferragamo's archive, incorporating classic elements such as red rhinestone high heels, giving them a modern reinterpretation. This not only demonstrated his respect for the brand's assets but also prevented a rupture in the overall design language of the brand.

The subsequent Fall/Winter 2023 collection, which continued the minimalist approach, aimed to further strengthen the brand's aesthetic territory and reshape consumers' perception of Ferragamo. Each step was taken cautiously.

It is worth emphasizing that Maximilian Davis' debut collection attracted widespread attention from the industry and the public, once again focusing the spotlight on Ferragamo, a luxury brand that had been neglected and has a nearly century-long history. Many industry insiders believe that Maximilian Davis has a profound design foundation, and his work aligns with the current trend of 'classic aesthetics,' which may lead Ferragamo towards a clearer and brighter future.

Secondly, Ferragamo's determination and efforts in marketing and communication also demonstrate its commitment to reform. According to Ferragamo's 2022 annual report, although the performance increased by 10.2% year-on-year, the profit declined by 10.8% due to the brand's heavy investment in marketing and communication.

The most obvious example is the use of bright red as the brand's new visual identity, from the runway to product design. This operatic color gradually permeates all aspects of Ferragamo, revealing its ambitious goal to become an overnight success. Similar to Valentino's pink and Bottega Veneta's green, Ferragamo is clearly attempting to enhance brand exposure through color marketing. The 'red storm' also appeared in store decorations and new season advertising campaigns, deepening the brand's overall visual system.

It is worth mentioning that in the past year, Ferragamo has significantly increased its presence on Chinese magazine covers, including Vogue China, Fashion Bazaar, Femina, and Nylon. This highlights the brand's emphasis on the Chinese market. Although Ferragamo's performance in the first half of the 2023 fiscal year declined, the report shows positive performance in the Chinese market.

So why is Ferragamo's performance still not satisfactory despite a series of targeted reforms?

Firstly, in terms of ready-to-wear business, although Ferragamo has set a minimalist tone through two seasons of fashion shows, with outstanding tailoring and lines, the problem lies in the fact that clothing can be debranded (going logo-less) but should not lack iconic symbols. In other words, Ferragamo's clothing has not achieved recognizable symbolism that can provide wearers with a sense of identity, making it difficult to increase sales.

Note that symbolism does not necessarily require a prominent logo. For example, after Raf Simons took over Prada, he reinterpreted the triangle from a new perspective, skillfully incorporating it into knits and jacquard fabrics. Prada's performance has been soaring in recent years. Similarly, Bottega Veneta currently does not have a logo, but it has pushed leather craftsmanship to the extreme and transformed it into various clothing items, providing consumers with a low-key luxury atmosphere.

Apart from the lack of symbolic clothing, Ferragamo faces strong competition in the minimalist field. Brands like Prada, Bottega Veneta, Jil Sander, and The Row have accumulated a significant number of loyal followers. It is not easy to convince them to buy Ferragamo's clothing, despite its heritage in shoe craftsmanship.

Furthermore, as a brand with a strong background in shoemaking, Ferragamo's core competitiveness lies in its footwear business. Therefore, creative director Maximilian Davis incorporated the brand's iconic Gancini pattern into the design of the heels, launching the ELINA series of women's high-heeled sandals and men's sports shoes. However, these products do not seem to have the potential to become bestsellers. It is crucial for Ferragamo to strengthen its development of the footwear business to achieve performance conversion.

In fact, Ferragamo's most prominent effort since the reform has been in the handbag business, which is considered a cash cow in the luxury industry. From the two seasons of fashion shows, numerous new handbag designs have been introduced. They draw inspiration from the brand's archives, combining classic elements with contemporary aesthetics. The sharp and sleek lines, meticulous practicality, and adherence to the current trend of 'old money style' make them appealing. But in today's luxury goods environment, aesthetic appeal alone is not enough to drive handbag sales. Perhaps Ferragamo needs to address two key issues:

Firstly, Ferragamo's handbags, while aesthetically pleasing, lack buzz and have already 'lost' in the race for exposure. For example, Daniel Lee's Burberry debut, although met with mixed reviews, saw him introduce the 'hand warmer' bag, which grabbed headlines. During his tenure at Bottega Veneta, he also showcased his exceptional handbag design skills with the pillow bag and cloud bag.

Secondly, despite Ferragamo enlisting celebrities like Yang Zi and Nazha to promote its new handbag collection, it has not succeeded in creating an It Bag. The brand's choice of celebrity endorsers and marketing strategy seems to be lacking. A successful example can be seen in the collaboration between Celine and Lisa. In the first few seasons after Hedi Slimane took over Celine, sales were sluggish. However, a deep collaboration with Lisa led to a surge in searches for the Celine Triomphe handbag after she was seen using it, boosting sales of both men's and women's wear. Last year, Celine's annual sales surpassed €2 billion.

Overall, luxury goods as a business are inherently challenging and take time to establish. Ferragamo is in the midst of a reform, and consumers need time to rediscover and accept its new identity. The performance in the first half of the 2023 fiscal year is not a definitive measure of the overall effectiveness of the reform. Perhaps a steady approach will yield different results.

However, Maximilian Davis must be aware of and vigilant about the fact that in the luxury goods world, consistently being praised but failing to translate that into sales will ultimately lead to decline. The target Ferragamo has set for him - to double sales to €2.3 billion by 2026 - is both a pressure and a motivation.