Rendez-Vous

PAOLO MARAI

CEO, VERSACE

PAOLO MARAI We are facing tough moments and the financial environment is very uncertain and unclear. In this moment, there is a lot of hope and optimism. We are all ready for the worse but sooner or later, there will be a rebound. We have to prepare for the future. Well prepared companies in good shape will be able to move fast into top gear during the rebound. We are very conscious of our situation but we are not as affected as some of our peers might be. Our approach is to be prepared of the future. We are in the process of investing to strengthen our brand, marketing and distribution. We had a good inventory position in December 2008 and we have seen phenomenal growth during the last 4 years. Also, not all markets are equally affected by the downturn. Some are still holding up. We are positioned in the luxury segment and customers in this segment are still holding up. We have several milestones to celebrate during these tough times. And we are confident of attracting customer attention. We also have a wide array of product portfolio. We have a strong Group backing to support us. We are concentrating more on the opportunities even during the downturn.

In 2008, our strong markets were the US, Europe and Asia. We are focusing on the Middle East markets. Europe is used to facing difficult moments. We are looking at newer markets such as China, India, Russia, Central Europe, Brazil and South America. We target the end consumer as much as the trade and retailer. We create pull factor directly in the mindspace of the customer. We shall focus on self-owned brand boutique. We are opening a boutique in Dubai. We want to establish a good position in every market, which we feel has got phenomenal potential.

India is one of our key markets for the future. But it is also a very unique and distinct market. It has a tradition of a certain type of demand for jewellery and precious stones accessory but this is very different from the global trends and preferences. We want to invest in distribution and retail. We want to upgrade the way in which we present the brand. We want to gain more visibility in the minds of the customers. We want to invest in modern retailing formats and bring international retail formats to India. The Indian customer is quite discerning and seeks an international retail experience from a brand such as ours. It is our responsibility to provide the customers the experience that they seek. We are quite serious about establishing our position in this market and are here for the long haul. We have a slow and steady approach for making deep inroads into the market. We want to grow the overall market and also attract more discerning customers in the luxury segment. We are setting the foundation for a long lasting, steady and strong presence in India.

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