Fendi CEO Burke eyes India for high-end luxury market

06 Dec '05

3 min read

Burke says that stores must have fresh merchandise, and our job was to take on the values and history of our brand and mix the Baroque with the modern, exercise the contrasts of the past and future in keeping with Fendi's symbol of Janus, the two-headed Roman god, whose one face looks back and the other forward. The new luxury store, he will retail from in India.

The product diversification has seen results: Italian shoemaker Ernesto Esposito's range has seen a 80% increase in demand, handbags, which have moved away from the hallmark leather have also seen a 60% increase while Karl Largerfeld's most-awaited furs (Fendi's double F once was thought to mean 'fabulous furs!') have seen a 250% increase in demand from Europe, US and Korea.

Burke says that women are free to wear fur again!, who adds that the range has done well after they got their “political correctness in”, with Korea being a surprisingly big market.

But the future for luxury houses is Asia, and Burke agrees that 60% of the business comes from outside Europe. Fendi's Dubai shop, which opened a year ago is among the brand's top 20 stores world-wide in sales, and top 5 in profitability. Burke feels India is better positioned for the high-end luxury market than China.

He says that China is more mass market and low cost. With its proximity to mature markets, India is less reliant on cost; it is accessories which will work in India rather than ready-to-wear.

The Economics Times

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