MILAN – Peter Dundas wasn’t the only debutant at the Roberto Cavalli show here Saturday. For the first time since the acquisition of the brand, chairman Francesco Trapani and chief executive officer Renato Semerari attended the show and shed some light on their strategies for the label.
Semerari identified two phases in the development of the business. “First, we will give more solidity to the collections and modernize the product, giving it more consistency. We have to become stronger in daywear and offer a total look, developing shoes, bags and men’s wear,” he said. The brand’s men’s collection will return to the runway in January after a one-season hiatus. The other priority is to expand geographically, especially in Asia. “Our presence in China is marginal.” The company has one store there. “China may be more difficult than in the past, but we can’t disregard it, we must be there,” said Semerari. He was previously president of Coty Group, and prior to that, was ceo of Guerlain and president and ceo of Sephora Europe. Coty is Cavalli’s fragrance licensee.
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International expansion will take place both through retail and wholesale distribution. The company will also strengthen those regions where it is already present, such as the U.S. – “perhaps the most important market” for Cavalli, noted Trapani. Russia has always been very relevant for the brand, and while Semerari conceded “it is a market in difficulty,” he said he was “an optimist by nature. Russia has always had its ups and downs many times before.”
Semerari said “the fundamentals of the brand are very strong and there is no need to reposition it. We respect the image of the label, which is still very strong, this idea of a free, sensual, bohemian, self- confident woman.” However, “we must open our windows to modernity, return to our history but make it more contemporary,” he added. Dundas, he remarked, “adores the brand, its sensuality and joyful attitude, he viscerally feels connected to it, but knows he needs to restart with a new vision. He and I are very much in sync.”
The namesake founder of the brand did not attend the show, as was expected, and Semerari characterized this decision as being “in good taste. I believe he wants for Peter to be at the forefront and under the spotlight. Peter is the future and he does not want to overshadow him.” The executive said the arrival of Dundas at the company, where he had previously worked for three years until 2005, was spearheaded by Cavalli himself. “He chose Peter, he proposed him during the negotiations. In fact, Peter arrived at the end of March, when the deal was not even closed yet. Roberto is Peter’s first sponsor.” Semerari said Cavalli, who retains a 10 percent stake in the company, remains as an “important” shareholder and a consultant. “He is the founder and soul of the brand, he helps forge the direction and there is a dialogue with him,” the eco said. Trapani also praised Dundas as “a talented designer, the most suitable” for the task. “It’s not forced,” he said of the pairing. “The challenge is to break away from the past while looking at tomorrow, balancing the two.”
The priority now is to refocus the signature line, which will then influence and lead the other brands, such as Just Cavalli and Cavalli Class, licensed to Staff International and Swinger International, respectively.
Cavalli’s parent Clessidra, which has also been investing in storied jewelry brand Buccellati and preppy Italian label Harmont & Blaine, is “living a dynamic moment,” said Trapani, who is also executive vice chairman of the fund. Trumpeting its unique experience, Trapani said Clessidra has “cultivated the Italian market for years and Italian entrepreneurs are now opening up to the idea of investments coming from private equity funds. They feel the competition and they know they need more means and an organized and sophisticated structure. We are not a classic private equity fund; we have the resources but also the operative and industrial expertise.”
Clessidra engages not only in financing its investments but also in mapping out and carrying forward strategic objectives. “It plays an important role in Italy, and we are looking at the pipeline. We are having many conversations and there are interesting opportunities,” he revealed. A former Bulgari ceo, Trapani was most recently chairman of LVMH Moët Hennessy Louis Vuitton’s watch and jewelry division and, as a member of the group’s board, he said, he is a “spectator” of the luxury industry and continues to believe in the relevance of the sector. “Luxury is extremely interesting,” he said.
Addressing China, he noted that, despite the uncertainties in global markets, “China is an enormous market and it’s grown very much. Its difficulties are linked to maturity. It’s more difficult to grow but it will continue to grow over the next years, and remain a point of reference for many sectors, including luxury and fashion. The Chinese buy little in their own country but more outside.” He also said that all of Asia is relevant, singling out Japan, in particular.
Trapani, who has been building the team to lead Cavalli, revealed Barbara Cortesi has joined the company as its new merchandising director. Cortesi previously worked at Gucci, Bottega Veneta, Dolce & Gabbana and Prada.
Cavalli sold 90 percent of his namesake company to Clessidra at the end of April in a deal that market sources estimated to be pegged at between 380 million euros and 400 million euros, or $423.5 million and $445.8 million at current exchange. In 2014, the Cavalli group posted revenues of 209.4 million euros, or $278.5 million, up 4.2 percent compared with the previous year.