Italian fashion house Versace is counting on increased sales from the Middle East to join the billion dollar club within the next five years.
Versace plans to increase its sales in the Middle East by 50 percent, while doubling its overall global revenues. By achieving higher sales, the fashion giant hopes to become a billion dollar company within the next five years. As a sign of the region’s growing importance to their global growth strategy, the company has signed an exclusive global licensing agreement with its Dubai partner to expand its jewellery range around the globe. Versace is celebrating the 20th anniversary of its fine jewellery offerings.
Speaking to Arabian Business, Gian Giacomo Ferraris, the CEO of Versace, said; “I think Versace deserves to double its turnover. So for the next five years our target will be to become a one billion dollar company. Not only with our mature markets… Versace is a worldwide, historically-recognized brand, and we will exploit this opportunity.”
Last year, the iconic brand recorded revenues of USD 528.4 million, thanks to strong performance in Europe and the Far East.
Accounting for about 10 percent of the total turnover, the Middle East became the third most important region for the brand. The company expects the Middle East to contribute about 15 percent to the overall sales, equal to the U.S. percentage of sales.
Middle East is key to ambitions
The luxury goods market annual sales, now exceed AED 30 billion (USD 8.2 billion) and the market continues to witness impressive growth in Middle East. According to a new study, the luxury goods market recorded a growth of 10 to 15 percent from 2011 to 2012 and has steadily climbed the charts to become the 10th largest consumer market in the world.