April 7, 2013

Versace seeks overseas expansion

Italian fashion company Versace is mulling to allow external investors to boost the company's expansion in foreign markets.

By admin-demo

Italian fashion company Versace is mulling to allow external investors to boost the company’s expansion in foreign markets.

The family-owned business is seeking investment options to expand its brand in Asian markets such as China.

On the basis of 2012 earnings, the company is valued at €690m, while it is expected to grow to €1bn by 2014, reported Reuters.

In an interview with the news agency, Versace chief executive Gian Giacomo Ferraris remarked that the family is debating over the funding for future growth.

"We are asking ourselves how fast we could go if instead of a Mercedes we owned a Ferrari," he added.

"We are aware that it could be a road but not immediately."

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Allegra Versace holds 50% stake in the company, while chief designer Donatella Versace and her brother Santo Versace own 20% and 30%, respectively.

In 2012, the company appointed Goldman Sachs and Banca IMI as advisers after it posted profits in 2011 following three consecutive years of losses.

Taking to The Wall Street Journal, Ferraris remarked: "It’s just a matter of deciding whether to grow faster — by injecting external resources — or a little slower by ourselves."

Ferraris also asserted that the advisers are likely to present the best possible options for the company’s growth in next few months.

Meanwhile, the company is seeking potential markets to extend its brand presence. The US accounted 13% of the total global revenues of the company grabbing retailer’s attention.

"This is all about our new lines and accessories, which are becoming more and more popular there. Donatella Versace has been looking at it closely and made it more appealing for American taste and for young people," noted Ferraris.

The company is also planning to unveil 10 outlets in China over the year, besides scheduling the launch of three stores in Brazil by May 2013.

Versace is also keen on exploring markets such as South Korea and Turkey.