Salvatore Ferragamo Takes Full Control Of Its 4 Asian Distribution Companies
December 18, 2018
Salvatore Ferragamo is working to strengthen its presence in Asia. The Italian luxury label has acquired a 100% stake in four joint-enterprise companies created in partnership with Trinity Ltd (of the Li & Fung group) that handle Ferragamo distribution in South Korea and South-East Asia, where the style label at the moment operates 70 monobrand stores.
The Florence, Italy label has said in a press release it has purchased the companies20% share still owned by Trinity, by way of Trinity Luxurious Manufacturers Holdings Ltd and Ferrinch (L) Ltd. The value of the transaction was not disclosed.
The deal impacts Ferragamo Korea Ltd, Ferragamo (Malaysia) Sdn. Bhd., Ferragamo (Singapore) Pte Ltd and Ferragamo (Thailand) Ltd, and is part of an agreement signed in 2012, which includes a purchasing choice permitting Salvatore Ferragamo to take full control of the joint-enterprise corporations.
On the time, Ferragamo had already elevated its stake in the four firms, which amounted to 80%. The economic slow-down in Asia has undoubtedly urged Hong Kong retail giant Li & Fung to promote the remaining stock.
In the previous few years, the Asia-Pacific region has turn into Salvatore Ferragamo’s most important market, accounting for 35.5% of its global revenue. As of thirtieth September 2016, the label’s gross sales in the area amounted to 60 million, equal to a 0.Three% lower compared to the first nine months of the previous fiscal 12 months.