Ferragamo to raise prices in Europe
Salvatore Ferragamo CEO Michele Norsa has recently confirmed his company would level out the price differences of products between Europe and Asia, as well as for places like Dubai and in India where imports are heavily taxed.
“The price gap between the European and Chinese, Japanese and Korean and markets is sometimes very large, discouraging consumption in some of our most promising markets,” he said. “We’re going to increase our prices in certain European cities. But what I hope is that governments reduce taxes, or at least that they don’t exceed 15 or 20%. When it exceeds that limit, it really becomes problematic,” said the CEO in an interview with Bloomberg.
Asia-Pacific accounts for over 36% of Salvatore Ferragamo’s profits, and over the last two years, sales in China rose by 20%. “We opened our largest Chinese shop in Chengdu a few months ago and we are going to open still more,” said Norsa, who saw sales in Chinese grow by 20% over the past two years.