Ignoring the signs of another global financial crisis and talk of China slowing down its rapid growth, Italian luxury house Salvatore Ferragamo is planning on entering as many as eight new Chinese cities over the next three to five years.
China has been declared as the ‘it’ place and the world’s fastest-growing major economy.
Salvatore Ferragamo currently have 58 stores in 33 cities in China, with CEO Michele Norsa telling Bloomberg that they are betting on an increasing number of middle-class consumers to help boost its business.
“Every year there will be millions of new people who will get access to luxury goods,” Norsa said. “This is really the potential for the luxury industry.”
Demand for luxury goods in China has surged along with growth in the world’s second-biggest economy. The National Bureau of Statistics reports that the average disposable income of urban households increased 14 per cent to about $US3,450 in 2011.
“We’re confidence about what we see in China,” Norsa added.
The new stores are scheduled to open in July in Central China’s Wuhan and in Jinanin the east.
With a debt ridden Europe, Norsa laments that the manufacturing and heritage value of “Made inItaly” will become even stronger.
“The impact of this crisis is not really touching the luxury industry.”
Image credit: m.123people.com
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