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Why Italy is not likely to see the formation of a new luxury group

By Don-Alvin Adegeest

31 May 2021

Business

Image: Diesel logo by Bledard92 via Wikimedia Commons

Italy is not likely to see the formation of a new luxury group, which is perhaps not in the DNA of the country’s majority family-owned businesses.

“I don’t think there will ever be a large luxury group in Italy. I don’t see any aggregations, said Moncler CEO Remo Ruffini, during a fashion roundtable ‘Fashion business and consumption’, organised by RCS Academy Business School.

“I do not think there is the will of other families to create this group which would give solidity, especially from a perspective of generational change,” said Ruffini.

According to Ruffini “everyone wants to keep majority ownership which is entirely understandable, because there are companies with a very long history handed down from generation to generation.” Ruffini said he was not “tied to the ownership of shares, but to the creation of value, to the creation of a group with strong profitability.”

The future of Moncler

As for Moncler, “for each of us there is a succession plan” and “if the Ruffinis are good, they are welcome, otherwise I will choose others.” When asked of a possible alliance with Only the Brave (OTB) founder Renzo Rosso, Ruffini replied “never say never.”

Small brand challenges

OTB, which is parent company to Diesel, Jil Sander and Marni amongst others, strongly supports the idea of a new entrepreneurial model in which companies contribute to sustainable economic and social development. Founder Renzo Rosso said “I think it’s a good time for aggregations. The pandemic is helping the union between brands, between companies. Today to manage our companies we need a cultural upheaval as well as in the way of doing business. There is a need for investments and we need to know how to have a dialogue with the big players, which are platforms such as WeChat, Yoox, Zalando and others. But if you go as a small brand they won’t even listen to you.”

It is therefore “the time for those who have this type of vision, for those who want to develop their company with other brands, making synergies between different products. And that’s what we’re doing. We are building a very solid group, structured to be of great support for companies.”