RETAIL MARKETING & STORE EXPERIENCE MANAGEMENT

2015

Salvatore Ferragamo &

Metro Shoes Brand Comparision

Rahul Menon

Roll number- 33

[ T Y P E T H E C O M P A N Y A D D R E S S ]

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AND

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Salvatore Ferragamo

History:-

Salvatore Ferragamo emigrated from southern Italy to Boston and then California in 1914.

He opened the Hollywood Boot Shop in 1923, and made shoes for movie stars such as Joan

Crawford and Gloria Swanson, as well as for films such as Cecil B. DeMille's The Ten

Commandments. He returned to Italy and set up a shoe shop in Florence in 1927. However,

the modern shoemaking company regards 1928 as the date of its foundation and so

celebrated its 80th anniversary in 2008. Salvatore filed for bankruptcy in 1933,[citation

needed] during the Great Depression, but by 1938 he was in a position to buy the Palazzo

Spini Feroni, one of the great palaces of Florence, which now houses the company's flagship

store and a museum dedicated to Ferragamo's life and work.

The company flourished after World War II, expanding the workforce to 700 craftsmen

producing 350 pairs of hand-made shoes a day.[citation needed] After Salvatore's death in

1960, his widow Wanda took over the running of the business and expanded its operations

to include eyewear, perfume, belts, scarves, bags, watches, and a ready to wear clothing

line.

The company is currently owned by the Ferragamo family, which in November 2006

included Salvatore's widow Wanda, five children, 23 grandchildren and other relatives.

There is a rule that only 3 members of the family can work at the company, prompting

fierce competition. To ease these tensions, in September 2006, the family announced a

plan to float 48% of the company on the stock market, and since October 2006 Michele

Norsa has served as managing and general director. However, as of January 2008, this plan

may be on put on hold in the midst of the downturn in the financial market. If the listing on

the stock market proceeds, the fund will be directed primarily towards building its positions

in China. The company is holding its 80th birthday exhibition in Shanghai.

For the fiscal year 2014, Salvatore Ferragamo reported preliminary consolidated revenues

of 1,332 million euros (1,508 million dollars) As of December 31, 2014, the Salvatore

Ferragamo Group's retail network consisted of 373 directly operated stores (DOS), while

the wholesale and travel retail channel included 270 third party operated stores (TPOS), as

well as presence in major department stores and high-end multi-brand specialty stores.

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Owners:-

The company is currently owned by the Ferragamo family, which in November 2006

included Salvatore's widow Wanda, five children, 23 grandchildren and other relatives.

There is a rule that only 3 members of the family can work at the company, prompting

fierce competition. To ease these tensions, in September 2006, the family announced a

plan to float 48% of the company on the stock market, and since October 2006 Michele

Norsa has served as managing and general director

Global Presence :-

Italy

In addition to its historical flagship store at the Palazzo Spini Feroni in Florence, Ferragamo

has two stores in Milan, two in Rome and 14 in prestigious locations in Naples, Genoa,

Turin, Capri, Portofino and Venice.

Europe

In Europe, it has a total of 58 shops it directly controls, including a flagship in Paris's Avenue

Montaigne and one in the Atkinsons Building in London's Old Bond Street. The shops are

found in major cities in France, Germany, the UK and Spain, as well as in Brussels, Athens,

Monte Carlo, Vienna, Prague and Amsterdam.

North America

Salvatore Ferragamo markets products in North America from Canada to Hawaii, with 25

directly controlled points of sale. In the United States, Ferragamo has 15 boutiques in

Arizona, California, Florida, Georgia, Hawaii, Illinois, Massachusetts, Michigan, Nevada, New

Jersey, New York, Pennsylvania, Texas, Virginia, and Washington. Of particular note are the

flagship stores at Fifth Avenue in New York and at Copley Place in Boston, as well as in

Beverly Hills and Honolulu. The company opened its first Canadian store in July 2013, in

Toronto. In addition to its free standing stores, there are many shop-in-shops and corners in

the department stores in the U.S.

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Latin America

Salvatore Ferragamo recently extended direct control in Latin America by setting up

Ferragamo Mexico, which directly handles 20 points of sale in the country including the first

flagship store in Latin America. It also has a select distribution circuit in numerous

countries, from Venezuela to Brazil, Argentina, Chile, Panama, Colombia and Peru. In Brazil,

the Salvatore Ferragamo group has begun in a luxury department store, called Daslu. After

that, direct control stores were opened in São Paulo (3 stores) and Rio de Janeiro (1 store).

Japan

Salvatore Ferragamo has had directly controlled operations in Japan since the early 70s and

can now count on a distribution network of 64 directly controlled points of sale, through

Japanese department stores such as Iwataya and Daimaru. It has two flagship stores, one in

Ginza, Tokyo, and one in Osaka, opened in October 2004. 27 percent of its revenue in 2005,

€575m euros, came from Japan.

Asia Pacific

Through its Hong Kong headquarters, Salvatore Ferragamo controls its distribution

operations in the following 11 countries in Asia and Oceania: Hong Kong (flagship in Canton

Road), Taiwan (flagship in Taipei 101), China (flagship in Shanghai), India (flagship in DLF

Emporio, New Delhi), Korea (flagship in Seoul), Singapore, Thailand (flagship in Paragon),

Malaysia (duplex flagship at Pavilion Kuala Lumpur), Indonesia, Doha (The Pearl), Qatar,

Australia and Philippines. In 2010 a massive expansion plan was set to expand the presence

of Salvatore Ferragamo in the Philippines. The plan includes the renovation of all four

stores in Manila and Cebu and the opening of Resorts World Manila store and the opening

of another two stores in 2012. The Salvatore Ferragamo S.p.A is unique in that it is one of

the only fashion brands not owned by large luxury goods conglomerates such as LVMH

Group or Kering Group.

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Retail Formats:-

The S.p.A has “over 3,000 employees and an extensive network of 606 single-brand stores.

Salvatore Ferragamo is established in 26 countries worldwide with a total of 338 directly

operated single-brand stores.In addition to the directly operated Ferragamo boutiques

around the world, the brand has also partnered with third-party retailers such as

Bloomingdales, Neiman Marcus, and Saks Fifth Avenue.

Store Positioning:-

The Salvatore Ferragamo stores have the inate Italian artisan feel to it , which lends to its

products an image of superior brand quality developed through the years. For each season,

new products arrive in three stages. Each shipment is a portion of the new collection, and

must be presented in a certain manner in accordance with Ferragamo ideals. Window

displays, for example, must highlight the most coveted products from the seasonal

collection, and must also transmit a story to the viewer. Corporate employees in New York

and Florence decide which items are ‘red hot,’ which are usually looks highlighted on the

runway. The displays are presented in a manner that radiates the inspirational elements

behind each collection. Each story must attract customers and also stay true to Ferragamo’s

fashion vision. A visual specialist will chart out a detailed store plan tailored for specific

stores.

Branding:-

With longstanding experience in shoe creation and customization, Ferragamo offers a line

of personalized, handmade men's shoes. The collection offers a stitched welting

construction a premiere technique among shoe craftsmanship hides, colors and styles

chosen and ordered by the customer, allowing him to express his individual style at a

supreme level of luxury.

The balance of tradition with modernity and innovation distinguishes this collection. Its

roots stem from Ferragamo's wealth of technical skill and continual research into materials

and construction coupled with a relentless passion for creating authentic and unique

designs. For this reason, Ferragamo only offers the best products and expertise to its

demanding and discerning customers.

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Promotional Activities:-

Salvatore Ferragamo has Four selling campaigns during the year. They engage with

celebrities and famous top models like Kate Moss, Gisele Bündchen, Claudia Schiffer and so

on. They conduct exquisite photo shoots and invests in short videos with exceptional

celebrities. Furthermore they focuse on events, exhibitions and launches worldwide where

in they rope in regional Celebrities who align with the Brand philosophy as the regional

endorser.

Uniqueness of the Retailer :-

Salvatore Ferragamo brand heritage is a synonym of glamour, elegance, craftsmanship,

creativity and innovation. Apart from that a few notable points which differentiates the

brand from other Luxury Apparels are:-

- the legendary status of the founder Salvatore Ferragamo which is inseparably linked to the

world of luxury footwear

- over 80 years history associated with high quality, classic luxury products which have

always been known for their Made in Italy excellence

- Continuous product innovation with a high level of customization and use of rare and high

quality materials, often incorporating particular and unusual details

- Abundant archive of designs and models to draw on as inspiration for new collections;

- Use of Ferragamo products by leading personalities from the world of cinema, theatre and

entertainment which gave Salvatore Ferragamo the name “ The Shoemaker to the Stars”.

Visual merchandising:-

The products are presented in a certain manner in accordance with Ferragamo ideals.

Window displays, for example, must highlight the most coveted products from the seasonal

collection, and must also transmit a story to the viewer. Corporate employees in Florence

decide which items are ‘red hot,’ which are usually looks highlighted on the runway. The

displays are presented in a manner that radiates the inspirational elements behind each

collection. Each story must attract customers and also stay true to Ferragamo’s fashion

vision. The Visual Merchandiser job profile for Salvatore Ferragamo is a coveted one across

the world.

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Future Plans:-

Salvatore Ferragamo’s major future plans include penetrating into emerging markets all

around the world. Emphasis will be given to the Asia Pacific region, predominantly

countries like China, Japan and India.

Another major segment Salvatore Ferragamo is looking to is the Travel Retail segment. They

currently have Retail Stores in 147 major Airports around the world and they are trying to

increase the visibility and penetrate all the major Travel Retail locations around the world.

Advertisements:-

1. Joie De Vivre, The Essence Of Salvatore Ferragamo Style

"Love - Live Salvatore Ferragamo" the Florence fashion House's advertising campaign for

Autumn-Winter 2006:

Salvatore Ferragamo's Autumn-Winter 2006 had global

visibility through "Love-Live Salvatore Ferragamo",

an advertising campaign that's as exuberant as it is

sophisticated.

"Love-Live Salvatore Ferragamo" builds on "I love Salvatore",

the campaign that carried the brand forward so successfully

since years. It retains the feeling of "joie de vivre", the aesthetic side of Italian lifestyle, and

encourages consumers to be masters of their own lives. The key to the new campaign was

the relationship between person and product. In Salvatore Ferragamo's stylistic conception,

the product is an experience to live to the full, a sophisticated and exclusive object that

takes its natural place in the consumer's day to day life, bringing elegance, verve and

optimism.

2. Ferragamo Celebrates La Dolce Vita for Fall 2007:

June, 2007- Salvatore Ferragamo launched a global Fall-Winter 2007-2008 advertising

campaign, inspired by the cinematic glamour of the movies.

Mario Testino captured Claudia Schiffer and Stephanie

Seymour in atmospheric black and white photographs as they

stroll and shop in Rome, the city's iconic architecture providing

a subtle backdrop. The two models play the roles of movie

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stars, flanked by handsome escorts and bodyguards, as hoards of onlookers and paparazzi

jostle for a glimpse of the two women. Eliding reality and fantasy, the Italian police had to

shut down via Condotti during the photo shoot, due to the real-life crowds that the super-

models attracted.

The campaign's theme pays homage to the silver screen, which has played so crucial role in

shaping the Italian fashion house's identity. From his work for big Hollywood studio

productions in the ‘20's when Salvatore Ferragamo first became known as the "The

Shoemaker to the Stars", to the designer's longstanding relationships with movie stars

throughout his career, it's an affiliation that endures today.

Ferragamo's Fall/Winter 07 advertising campaign puts a

modern spin on La Dolce Vita, the film that captured the

charisma of movie stars and shaped the dreams of an entire

generation. It was a time when actress made a point of visiting

Salvatore Ferragamo at the Palazzo Spini Feroni in Florence on

every one of their trips to Italy, to purchase the renowned

shoes that the designer created exclusively for them.

The still-life shots use bright colors in contrast with the black and white to showcase the

Salvatore Ferragamo men's and women's accessories. Photographed at Ferragamo's own

Portrait Suites Hotel in Rome, located close to the city's famous Spanish Steps, the product

lies casually strewn among used champagne glasses and make-up, evoking the magic of the

big screen and the dolce vita of its stars in the ‘60s.

3. "LA DIVA" AND "L'ETOILE" MEET AT THE THEATRE:

Salvatore Ferragamo presents its Fall-Winter 2008 ad campaign, interpreted by Claudia

Schiffer and Roberto Bolle:

Salvatore Ferragamo previewed its Fall-Winter 2008 advertising campaign, by photographer

Mario Testino and featured two exceptional celebrities: Claudia Schiffer and Roberto Bolle.

The top model that has been the face of Salvatore Ferragamo for three seasons was joined

for the first time by l'etoile at the Teatro "La Scala" in Milan, who had been a testimonial for

the Florentine Maison.

Testino, who produced the photography for the brand's previous campaigns, continues to

evoke sophisticated and refined atmospheres that illustrate the Ferragamo brand and its

products through shots of the glossy life of a real star of yesteryear.

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With her inimitable charm, Claudia Schiffer becomes an icon

for all the Hollywood stars that have chosen Salvatore

Ferragamo since the Twenties and helped towards the success

of its creations.

Roberto Bolle, who danced in Shanghai during the brand's

80th anniversary celebrations, holding the 2,000 guests

spellbound by his performance, plays the part of himself, ambassador of Italian culture,

with its refined aesthetic tastes and profound artistic traditions, values with which

Salvatore Ferragamo too has always identified.

The black and white photos were shot in an historical location of great prestige, the Teatro

San Carlo in Naples. The star is depicted going backstage to meet the famous dancer and to

take pictures with him.

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Metro

History: -

In the year of liberation, 1947, a lone shoe store opened its doors to the public in Colaba,

Mumbai. Metro Shoes, the brand, is now a household name in India. Over the past six

decades, the company and the brand have become synonymous with unmatched quality,

skilled craftsmanship and high-fashion products in the footwear industry.

Metro Shoes has a countrywide network of exclusive Metro showrooms at more than 160

prime locations across 80 plus cities in India designed to bring customers, an extensive

collection of footwear and accessories to suit their every need. What began as a single

outlet in Mumbai has today grown into a nationwide chain of exclusive fashion footwear

and accessories stores for the entire family.

Domestic Presence:-

Metro shoes has around 220 stores , spread across the country covering tier 1 and tier 2

cities but upcoming tier 2 cities are their major source of expansion .

Retail Formats:-

The company operates through a MBO format across Tier I, II and III markets in the country.

They are the First Indian footwear giants to foray into E-Commerce and start selling their

products online. They follow COCO (company owned company operated) formats

throughout the country without any exceptions.

Store Positioning:-

Metro shoes during its inception were aimed at Bollyood celebrities and the Upper Class

segment. It then catered to upper middle class in Tier 1 & 2 cities for quiet a long time .In

the recent past they have shifted their TG towards the youth of the country by a carefully

crafted repositioning strategy using different media examples produced later.

Branding:-

Metro Shoes has undergone a revamp, one that reflects in its product line, ad campaign,

positioning stance, and overall look and feel. Previously positioned as a 'family footwear

destination', the brand is now being promoted as a 'fashion footwear destination'. The new

catchphrase goes 'Shoes for a New Race'. It is being popularised through a multi-media

campaign comprising print, outdoor and digital platforms. The marketing budget allotted to

this revamp is Rs 20 crore, of which a large part has been dedicated to this particular

campaign.

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Promotions:-

Metro shoes predominantly relies on sales promotions . Further they tie up with Bollywood

movies for outdoor promotions and in film placement giving them visibility at a lot of

placed which normally their products won’t reach.

Private labels :-

The company has two private labels namely, Mochi and Metro which constitutes around

50-75% of their total sales. They further sell brands like Red Tape & Lee cooper throughout

the country. Mochi is positioned to be a more pocket friendly brand compared to metro but

with the same core values as the parent brand and demands the same trust from the

consumers.

Uniqueness of the retailer:-

Their decision to have all their store based on the COCO model is what sets this brand apart

from the rest. The current generation of Top executives understood the founders vision

and decided to give predominance to customer satisfaction and quality.

The following excerpt by Rafique Malik, Chairman and MD, Metro Shoes explains it further.

“We believe a brand is made by a delightful customer experience. In order to maintain our

brand image, we incur substantial amounts of fixed and recurring investments on staff

motivation and training as well as on furniture and fixtures of our showrooms.

The footwear industry, owing to its nature of work, does not attract the best quality of

front-end personnel. Hence, we make good investment in training them to achieve a highly

motivated workforce. Moreover, the remuneration of our staff is directly linked to the

performance of the store and internal promotions further solidify the quality of front-end

employees. This ensures excellent service to the customers, both at the time of sale and

after sale. Customer service and ambience along with quality of products are the most

important pillars of our brand image. It is our constant endeavor to standardise this

delightful experience throughout our stores.

Since we are yet to come across a successful model of implementing and maintaining this

across our stores, we have still not taken the franchisee route.”

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Future Plans :-

Rakesh Jhunjhunwala-backed Metro Shoes Ltd is accelerating the pace at which it’s opening

stores because retail space rentals are lower and the company seeks to capture a bigger

share of India’s fast-growing footwear market.

The Mumbai-based footwear retailer plans to more than double the number of its outlets

to 421 by March 2015 from 161 stores currently.

“Because of the (weak) market sentiment, we are getting good retail space at lower prices,

especially in tier II cities such as Patiala, Nagpur, Ranchi and Patna. We are getting good

deals,” executive director Farah Malik Bhanji said in an interview.

The company, which sold a 15% stake to investor Jhunjhunwala in 2007, will spend Rs.60-70

lakh to open a store, or Rs.156-182 crore overall, on furniture and stock over the next three

years, Bhanji said. Metro Shoes, a debt-free company, will fund its expansion through

accumulated profits at least till the next year.

Visual Merchandising:-

The Metro shoes store has a lavish look with bright lights and the products displayed in a

very structured manner special coverage for new products are given

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Advertisements:-

ro Shoes has undergone a revamp, one that reflects in its product line, ad campaign,

positioning stance, and overall look and feel. Previously positioned as a 'family footwear

destination', the brand is now being promoted as a 'fashion footwear destination'. The new

catchphrase goes 'Shoes for a New Race'. It is being popularised through a multi-media

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campaign comprising print, outdoor and digital platforms. The marketing budget allotted to

this revamp is Rs 20 crore, of which a large part has been dedicated to this particular

campaign.

We learn that this is a conscious effort to lower the age of the brand's patrons. Calibrated

research by the brand revealed that its most loyal consumers belong to the 30+ age group.

While these loyalists are happy with the brand's products and services, there is a clear gap

in the satisfaction levels of its consumers in the 20-30 years bracket. The research showed

that the brand was perceived as lacking on several parameters such as the extent to which

it experimented with colours, heels and styles. The revamp campaign is an effort to address

these gaps.

Lavina Rodrigues, marketing manager, Metro Shoes, explains the need to include 20-

something consumers into the brand's fold. "We are one of the oldest retail outlets in India.

We face this issue of being 'a 60 year old brand'. The parents, maybe even grandparents, of

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today's generation might have been to Metro. Among the youth, there's a sense of 'My

father has been to Metro; it's his store'. We want to be more relevant to the current

generation," she explains.

Going on about the psychographics that characterise today's 20-something consumer, she

adds that he/she is probably just finishing education, starting to earn, with more disposable

income than responsibilities, and is independent enough to make his/her own decisions.

"We want to target this group and want a major chunk of our business to come from this

group," Rodrigues says.

The brand's research also revealed that the 20-30 year old shops for shoes more frequently

than does the 30+ consumer. "Overall, we see our loyal customers (30+ bracket) coming in

to buy shoes at least three times a year. But we believe that for the younger segment (20-

30 bracket) this figure could go up to five times a year or higher," Rodrigues shares.

It is this fearless youngster that the brand refers to in its new tagline 'Shoes for a new Race'.

In the words of Farah Malik Bhanji, managing director and CEO, Metro Shoes, this new race

of youngsters doesn't believe in following age old norms. "The visual grammar and

language" used in the campaign is bold, hence captures this attitude of the youth, she says.

The copy in the campaign comprises remixed (read: rebellious) versions of conventional

sayings: 'Leap before you look' (a spinoff on 'Look before you leap'), 'The meek shall inherit

the dirt' (instead of 'The meek shall inherit the earth'), 'Good things come in all sizes' (a

clear reference to shoe sizes, in place of 'Good things come in small sizes') and 'Don't be

safe nor sorry' (a defiant rendition of 'Better to be safe than sorry').

Commenting on this unapologetic and non-conformist stance, Sameer Makani, managing

director, Makani Creative, the agency that has created the ads, says, "A study of the Indian

youth revealed that this is a generation with strong convictions. They value relationships

but don't lug around emotional baggage; they live in the present. Their career choices are

driven by passion, which may be a departure from conventional options."

The brand's previous campaign featuring actors Saif Ali Khan and Kareena Kapoor served

two purposes: it grabbed mass attention and "aesthetically elevated the brand," as he puts

it. Having done so, the next step was to drive home a very specific message to a very

specific target group, shares Makani.

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Shot in London, the current campaign features white models. While consumers figure out

whether the connection to the tagline -- Shoes for a new 'Race' -- is intentional or

incidental, we ask Makani whether using Indian models would have reduced the desired

impact in any way.

"No, it wouldn't have," he answers, "However, we want to portray that our product line can

give global brands a run for their money and can appeal to the world at large." According to

Rodrigues, the white models give the brand a more "up-market, international and

aspirational look."

There are mass brands and there are luxury brands. Metro Shoes -- that is more expensive

than Bata at the moment - seeks to strike a balance between the two and targets what it

calls the 'affluent masses', including consumers belonging to SEC A, A+ and B+. Rodrigues

explains the oxymoron: "We are a little bit aspirational but also affordable. Metro Shoes is

something the common man or middle class consumer can certainly work up to and afford,

unlike some luxury offerings priced at Rs 50,000 and above that only 1-2 per cent of the

population afford."

The media mix of the current campaign doesn't include TV. For a national brand with over

175 stores across 60 cities, why is TV not part of a major repositioning effort? "Since we are

a 'mass affluent' brand, we're not for everybody. Besides, we found better ROI with print

than TV. Outdoor also works beautifully for us; with outdoor we are able to help a single

store market itself to the right audience," Rodrigues explains.

For Metro Shoes, different parts of the country yield different results. The West is the

brand's strongest market, followed by the South, then the North and lastly, the East (where

it is present in Kolkata and Guwahati). Further, while the brand is popular in Tier 2 cities, it

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faces tough competition from newer brands in the metros. "Metros are our focus. People

here want to 'flirt' with newer players and experiment," says Rodrigues, about her agenda

for 2014.

Conclusion:-

Salvatore Ferragamo is a luxury heritage brand of footwears and accessories that only

caters to the unapologetic,mature , extremely affluent buyer.

Metro shoes on the other hand is a very trusted brand which is a little aspirational but also

affordable by a common man .

The contrast of the brands are visible in every aspect of the 2 Brands, Ferragamo catters to

mature people whereas Metro caters to the young , Ferragamo stores take extreme care to

visually merchandise each and every store whereas Metro store’s Visual merchandising can

only be termed as adequate. Metro shoes targets Tier 1& Tier 2 cities whereas Ferragamo

only targets SEC 1. Metro shoes in line with their positioning for the young generation was

the first to enter E-commerce space among peers , where as Ferrgamao had a very late

entry to the E-tailing space.

The one common factor between the Company’s is that they both operate only on COCO

models and does not believe in franchising their brand.

Furthermore both Metro Shoes and Salvatore Ferragamo is family based business with the

top positions always being occupied by members of the family.