- The US’ 45th president, Donald Trump, declared during his inauguration speech “We will follow two simple rules: buy American and hire American”, to keep the apparel production in the U.S.
- Some companies are wondering what the “Made in USA” label will mean under the new administration. Will it continue to stand for craftsmanship and style, or amount to an endorsement of Trump’s policies — or even the president himself?
- The new CEO, Eraldo Poletto, of the Salvatore Ferragamo luxury leather goods and fashion house said that the prospect of a possible new tax on imports into the United States won’t deter his growth strategy in the brand’s single most important market.
- Eraldo Poletto told The Associated Press that any tax on imports, as floated by President Donald Trump’s administration, could be balanced by other factors, including currency fluctuations.
Ferragamo’s new CEO product priority will be the brand’s core shoe and leather goods businesses, with a focus on women’s footwear and handbags, also in the United States where Poletto said men’s footwear is already performing well.
Poletto is investing in the creation of a new must-have handbag to get the Ferragamo customer base buzzing.
“We are now under-penetrated in leather goods. We are not very happy about that. We are fixing that very rapidly.”, he said.he said
Ferragamo won’t consider moving production to the United States, which represents about one-quarter of its revenues. Poletto said Ferragamo’s “Made in Italy” craftsmanship credential is integral to the brand.
“I think the key is, if he goes there, how strong the dollar will be. So it is not going to be just one action. Other things will happen. The beauty of the global economy is that things will balance out,” Poletto said. “I think we are very emotional about things and then actually there is a solution to everything” he added.
About Ferragamo’s history
The storied brand was launched by Salvatore Ferragamo in California as the Hollywood Bootshop in 1923, making shoes for the film industry. He later returned to Italy to build the brand based on Italian craftsmanship. Ferragamo’s son Ferruccio is the chairman, while three of the founder’s 23 grandchildren have joined its workforce under a family-set cap at the publicly traded company.
“It’s 90 years after father came back from America,” said another of Ferragamo’s sons and company board member, Leonardo Ferragamo. “He came back to Italy because he knew that only in Italy he would find the quality he was dreaming of to deliver with his shoes.