Giovanna Furlanetto is the president of Furla, one of the major players in the world leather goods market, toting an annual turnover of more than €200 million. In the 1970s, along with her brothers Carlo and Paolo, she took over from her father Aldo who founded the company in 1927. Together they began to produce a Furla brand collection, pursuing a focused expansion plan for the firm’s distribution network, that today counts 328 single-brand boutiques in 91 countries and a distribution network of 1290 official sales outlets. Combining creativity with a far-sighted entrepreneurial spirit, Furlanetto has pushed the company towards the future through constant innovation, the choice of strategic markets and the conception of new products and materials, often the result of her numerous travels that have brought her into contact with constantly diverse and stimulating markets.
The business of leather apart, her love for contemporary art led her to found the Premio Furla award in collaboration with the Fondazione Querini Stampalia in Venice. The prize, the only one of its kind in Italy, is dedicated to supporting contemporary Italian artists. Furla’s work in the field of contemporary art led the company to create the Fondazione Furla in 2008, an institution that guarantees and gives continuity to pre-existing projects, granting them further development and international reinforcement. In an e-mailed interview, Giovanna Furlanetto shares with Richa Bansal her brand’s mission in India.
How has the growth been since the brand started? What do you attribute this growth to? What is the turnover now and what was it when you started?
The company was founded by my father Aldo in 1927, initially distributing fashionable products for women. In 1955 the first Furla store was opened in Bologna. The seventies is the decade when I entered the business with my brothers and began the strategy of international expansion which took us to the USA in the Eighties and Japan in the Nineties. Since the year of its foundation, Furla has grown impressively and I am proud to have celebrated our 85th anniversary a couple of years ago.
The growth came when we marked the company’s crucial shift towards the design and production of exclusive leather items. This was in the Seventies. That was a great intuition if you consider that today our leather creations account for 83 per cent of the total worldwide distribution. It’s been a continuous challenge, targeting 99 per cent of women in the world, from different cultures and nationalities– a mission that has been further propelled by the ‘lifestyle’ concept infused onto our display of accessories and small leather goods, which, synergistically to the handbag collection, meet the modern consumer’s desire for special matching items The balance between the commercial aspect and the creative flair has always played a major role in this regard, currently reconfirmed by our positioning as premium lifestyle brand. I assume that the play between the “dream” of Italian style and the approachable price range is a key factor for the brand’s success.
When was the Indian operation started and how has the progress been?
The joint venture began operation in September 2012. Now there are three Furla stores – one each in Mumbai, Kolkata and Delhi respectively.
Did Furla do any survey before entering the Indian market?
We have always entered the new markets with a low-profile approach. This means that we try to understand the local habits and tastes in depth. Every area is distinctive. You don’t behave in India the same way you do in China or the US. We enter on tiptoes, we try to comprehend and figure the situation out and then we develop our business coherently with the local, specific culture. Fo this reason we built a series of solid, best-in-class partnerships and joint ventures in the countries with the highest potential of growth.
Who are the Indian partners of Furla and how were they selected?
Our business partner in India is Genesis Luxury Group (JV). The development plan in the country is primarily based on the selection of real estate locations in cities where luxury malls are already blooming, such as New Delhi, Kolkata, Mumbai and Calcutta.
What is the percentage of sales of the brand – India and globally?
India is one of the most important new market in the APAC region as it is at its development stage. In 2013, total APAC sales accounted for 14 per cent of global Furla business and it has huge potential of growth.
Which are the best markets for Furla and why?
Currently, EMEA and Japan are our biggest markets but we are rapidly growing in the Asia-Pacific area, thanks to the important agreements with important local partners: LI-Lu in Russia, Central Marketing Group in Thailand, Transfashion in Indonesia and Fung Group in China, along with Genesis Luxury Group in India.
What are the innovations that the brand has done since it started?
Innovations were made both in terms of products and in-house organization. Furla today is present in 100 countries, with five branches in France, Hong Kong, Japan, Korea and the United States. To achieve such impressive results over the years, we have had to embrace an evolving attitude, which on one hand resides in the continuous drive for stylistic research and experimentation while on the other hand refers to building an extremely focused, skilled and global-oriented management comprising expert collaborators and professionals from across countries.
What are the design directions and aesthetics for Furla? How many collections are made in a year?
We keep our designs essential, timeless, functional, contemporary, versatile and sophisticated. Furla’s identity and stylistic codes have always been centred on the balance between Italian artisan know-how and the brands’ intrinsic drive for constant research and experimentation. This dualism entails the refined, yet all-purpose aesthetics that characterise all handbag and accessories collections, where the concepts of functionality and versatility required by modern living are firmly bound to an everlasting sense of beauty and elegance.
Moreover, timeless simplicity and a contemporary soul are exquisitely exalted by blending art, culture and minimalism into an eye-catching symmetry that perfectly portrays Furla’s spirit of innovation.We come up with four seasonal collections plus the Giovanna Furlanetto and the Business Travel lines. We are also developing the project ‘Exclusive Collection For’, characterised by the creation of special products tailored on the needs of the specific markets. This was first launched for Saks Fifth Avenue in November 2011.
What are the different materials used for the bags and where are they sourced from? How many pieces per collections?
We employ the finest leathers and exotic printed textures, including real snake and crocodile skins in the ‘Exclusive Collection For’. Besides, we also use furs and straw, technical fabrics like nylon and innovative materials like PVC, as seen in our iconic Candy Bag. Our providers are all Italians.
Which stores do better – company-owned or franchised? Is there a particular design for the stores?
Both perform very well. We released our new store concept in Asia, with the openings in Hong Kong, Beijing, Dubai and Macau. It’s currently hitting Europe, starting with the inauguration of the restyled shops in Milan, London and Paris in 2013. The concept is based on the interpretation of Italian style in a very contemporary way, blending creative spirit, sophisticated design and timeless elegance.
Specifically, the new image draws inspiration from the architectural details of the restored 18th century Villa in Bologna, housing the company’s headquarters. Notable features are the architraves of the doors and the boiserie-frames of the walls, combined with modern elements like the brass finishing and opalescent glass. Furthermore, symbolic of Furla’s long-lasting connection with the world of art, there are abstract and sculptural graphical details inspired by the work of Donald Judd, perfectly integrated with the components inherited from traditional architecture.
How has Furla faced the competition around the globe and local brands in India?
Every area holds its rules and challenges, and our mission is to build a story of long lasting success. We face the competition by expressing our solid and incomparable expertise in selecting the finest materials, executing faultless assembly processes and applying the most valuable and meticulous manufacturing techniques. Particularly, superiority and distinction in the leather goods’ segment are reflected by the ability to convey complex chromatic performances on different textures and surfaces, which can only be achieved through skilful tanning and dyeing procedures.
Where do you see the brand five years from now in India?
Together with our partner we intend to increase our market share in the premium brands sector in the market of India.
Where is the manufacturing done?
Furla manufactures its merchandise in Italy.
How do you see the Indian handbag market vis a vis the global markets since you started and where do you see it going in future?
Today, Indian consumers are accepting and adopting international customs and trends at a much faster pace than anticipated. The country is adapting to global changes and consumers are well-informed and increasingly demanding about the latest trends, especially in the luxury products segment. This has also been generated by the growing importance of digital media. The Internet, Facebook, Twitter and the mobile communication are revolutionising the ways people interact and communicate with each other. And this is one of the strongest means to reach out to the savviest Indian consumer. In this optic, we must respond by increasing awareness through innovative, more cutting-edge and contemporary strategies, with retail moving out of classic spaces into “hybrid” dimensions, with a mix of luxury and non-luxury stores, and with a very customised service.
Are handbags only sold in India or shoes also? What is the sales wise breakup between bags and shoes worldwide and which is the core product? Any plans to manufacture in India if so where?
The Furla stores in India sell handbags, shoes, small leather goods and accessories. We have no plans to manufacture outside of Italy.
Any price modifications done for the Indian market?
The pricing strategy of India follows that of the European market. Local import tax applies, just like any other market in the world.
How does Furla deal with piracy which is rampant throughout the world?
There’s only one way to avoid fakes or counterfeiting, and it’s making more and more unique products. Ours is a country with richness and an expertise that, besides its artistic and cultural heritage, lies on the time-honoured traditions of ‘Made in Italy’, both in terms of creativity and quality. Italian beauty, ideas and distinctiveness are values that cannot be replicated elsewhere. Our know-how is exclusive and inimitable.
You can copy our fabrics, shapes and patterns, but you’ll never be able to interpret them in the same way we do. Are there any other products besides ladies handbags that Furla makes?
Alongside our signature handbag collection, we have developed an entire display of accessories and small leather goods that meet the modern consumer’s desire for special matching items. Today the brand has gained worldwide recognition for its original and diversified lifestyle product mix, comprising shoes, belts, textiles, wallets and key rings that further embody Furla’s fundamentals: elegance, distinctiveness and functionality.
Is Furla sold online? What are the sales like on line and are they available worldwide?
Furla’s online boutique has been widely implemented and today operates in Europe, USA, Japan and soon in China. We closed 2013 at +47 per cent compared to 2012 with a double-digit growth compared to 2010.
Does Furla have a customer loyalty club programme?
We have an e-commerce Privilege programme, divided into Gold and Platinum members. When Gold members reach €500 worth of purchases during the year, they receive a 5 per cent discount on subsequent purchases for the rest of the year and for the entire following year. The same holds for Platinum members, when they reach €1,000 of purchases in the year. Moreover, during the month of their birthday, Gold and Platinum Privilege customers receive an additional 5 per cent discount.
