Italian handbag maker Furla is hoping to more than double its sales in the next five years. The company plans to do that by opening new stores and making inroads into the affordable luxury market. Furla is considering taking on debt or listing its stock in order to raise revenue to open new stores.
Furla’s sales were 228 million euros ($296 million) in 2013. Three quarters of its sales were outside Italy, which had the highest percentage of sales. Europe accounted for 30 percent of Furla’s sales in 2013; the Asia-Pacific region, 14 percent; and the United States, 9 percent. Furla’s Chief Executive Eraldo Poletto wants to increase the company’s sales to 500 million euros within the next five years.
Store openings between 2010 and 2013 helped Furla increase its sales by 45 percent during that period. The company currently has 367 single-brand shops and plans to increase that number by 40 by mid-2015. Most of the new stores will be in Europe and the Asia-Pacific region. The company will continue to renovate stores in Russia and expand its presence in Japan and the United States.
Demand for top-end goods has been declining. Furla wants to expand into the growing affordable luxury market throughout the world before other companies do.
Furla has been competing with American brands, such as Michael Kors, Coach, and Tory Burch, as well as France’s Longchamp. The company has also had to compete with top luxury companies for retail space.
Furla is known for its clean, linear, and minimalist handbag designs. The company has expanded its product lines to include shoes and a men’s collection aimed at Asian customers. It is also considering selling watches and beauty products.
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