Salvatore Ferragamo SWOT and PESTLE Analysis

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.

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Weakness

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Opportunity

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Threat

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Political

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Economic

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Social

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Technological

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Legal

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Environmental

1. Promotion of responsible energy consumption: Ferragamo promotes initiatives to control energy consumption and improve efficiency. In 2019, the company formulated the HSE & Energy guidelines for disseminating awareness about energy efficiency and environmental protection throughout the company. In the company’s Italian operations, 100% of the energy used comes from renewable sources. At the company’s Osmannaro site, the buildings have a Building Management System that helps in control and monitoring of mechanical and electric systems with a possible annual reduction of 34 tons of CO2. The installation of more photovoltaic fields at the Osmannaro site in 2019 led to increase of 1,307 kWp in the overall installed power. The electricity self-generated by the company was 1,673 GJ, which is 6% of the total consumption.

2. Sustainable mobility solutions for company employees: An important part of Ferragamo’s sustainability vision is the search for sustainable mobility solutions. In Italy, the company appointed a mobility manager for optimizing employee travel and promotion of solutions that minimize environmental impact. In 2019, the company’s collaboration with JoJob carpooling service helped in saving money and reduces CO2 commuting emissions. In 2019, during the European Sustainable Mobility Week, the company supported initiatives like bike to work during which 400 participants were shown the easiest and safest route to reach the Osmannaro site by bike. The same year the company started a shuttle service between the Osmannaro site and T2 Tramway stop following an employee survey to promote sustainable mobility.