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Salvatore Ferragamo SWOT & PESTLE Analysis

ID : 52770753| Sep 2020| 15 pages

COMPANY PROFILE -Salvatore Ferragamo

Business Sector :Fashion

Operating Geography :Italy, Europe, Americas and Asia

About Salvatore Ferragamo :

Salvatore Ferragamo SPA was founded in 1927 in Italy. It is the parent company of the Ferragamo Group, which is a major player in the luxury goods industry. It focuses on creating, manufacturing and selling footwear, silk products, clothing, and leather goods for men and women. The Group is also involved in developing and distribution of perfumes through a subsidiary Ferragamo Parfums, under the brands Salvatore Ferragamo and Emanuel Ungaro. The company has its presence in Italy as well as over 90 countries of Europe, Americas and Asia. The products are distributed through various channels: network of directly operated Salvatore Ferragamo mono-brand retail stores, mono-brand third party operated stores, as well as high-level multi-brand department stores and specialty stores. There are 650 stores and 4,200 employees globally as of January 2020.

Salvatore Ferragamo Revenue :


1,377.3 million Euros - FY ending December 31, 2019 (YoY growth 2.3%)
1,346.8 million Euros - FY ending December 31, 2018 (YoY growth negative 3.3%)
1,393.5 million Euros - FY ending December 31, 2017

Competitive Analysis of Salvatore Ferragamo

SWOT
PESTLE
The SWOT analysis of Salvatore Ferragamo is presented below:
Strengths
Weaknesses
1. Brand heritage synonymous with craftmanship, glamour, creativity, elegance and innovation
2. High focus on quality control across the entire product range
3. Worldwide brand awareness and diversified distribution network
4. Strong human resources system and employee engagement
5. Successful customer centricity strategy
1. High dependence on key external parties in production
2. Failure to tackle worker exploitation in supply chain
Opportunities
Threats
1. High potential for online sales in luxury segment
2. Growing luxury goods market in India
3. Increasing consolidation in the industry through acquisitions
4. Collaborations increasingly becoming mainstream in the luxury industry
1. Loss of key resources and expertise
2. Risks related to third party trade channels
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Salvatore Ferragamo

 

Strength

1. Brand heritage synonymous with craftsmanship, glamour, creativity, elegance and innovation: The company’s founder Salvatore Ferragamo is a legend in the luxury footwear industry. The company has an 80-year history of making high quality, classic luxury products known for their ‘Made in Italy’ excellence. The products are a result of continuous innovation, high level of customization, and usage of rare and high-quality materials having unusual details. The company has a huge archive of designs and models as inspiration for new collections. Leading personalities in cinema, entertainment and theatre use Ferragamo products. Over the years the company has become a major player in the luxury industry.

2. High focus on quality control across the entire product range: Salvatore Ferragamo has a ‘Made in Italy’ production process involving many expert and carefully selected manufacturers that have been working with the company for many years. Particular attention is given to quality control throughout the process, from the raw materials to the end product. The company has been successful in introducing new product categories, especially those with high growth and profit potential, while at the same time maintaining the identity and integrity of the brand for a long time. The company provides licenses only to a limited number of highly qualified manufacturers. The company has RTW products prepared using sophisticated materials for enhancing the leather and footwear product ranges.

The remaining section of “Strength” is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threat

This section is available only in the 'Complete Report' on purchase.

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References used in Salvatore Ferragamo SWOT & PESTLE Analysis Report

1. Salvatore Ferragamo Annual report 2019 -https://group.ferragamo.com/wps/wcm/connect/2f2d90f1-eb91-4720-b1da-8a20e98f440d/Annual+Report+as+at+31+December+2019.pdf?MOD=AJPERES&CACHEID=2f2d90f1-eb91-4720-b1da-8a20e98f440d

2. Salvatore Ferragamo Sustainability report 2019 - https://csr.ferragamo.com/smuseo/images/Custom/pdf-sfogliabile/2019-Sustainability-Report/docs/2019-Sustainability-Report-Salvatore-Ferragamo.pdf?reload=1585644706553

3. The Future of Online Luxury Retail - https://luxe.digital/business/digital-luxury-reports/future-online-luxury-retail/

4. Pandemic pushes Ferragamo into new territory - https://www.voguebusiness.com/fashion/pandemic-pushes-ferragamo-into-new-territory

The detailed complete set of references are available on request in the 'Complete report' on purchase.

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SWOT & PESTLE.com (2021). Salvatore Ferragamo SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/salvatore-ferragamo/ [Accessed 25 Sep, 2021].

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Salvatore Ferragamo SWOT and PESTLE analysis has been conducted by Nipunn V and reviewed by senior analysts from Barakaat Consulting.

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