Pietro Beccari, CEO of Fendi, talks about his brand's plans to target the young elite
The Fendi baguette is one of the world’s most coveted bags. Fashion journalist and author Plum Sykes calls it “the It bag that begat the entire It-bag industry”. Its fame peaked when it starred in an episode of the Sex and the City where a fashion-conscious street thug mugged Carrie Bradshaw and made off with her purple sequined Baguette.
The iconic bag may be more than 15 years old, but its allure has not diminished one single bit. And neither has Fendi’s.
An August 2014 study by the Credit Suisse Group reveals that the most sought-after bag is not manufactured by Hermès or Marc Jacobs but by Fendi, which rubs shoulders with Ralph Lauren, Louis Vuitton and Michael Kors. According to the report, the Italian luxury fashion house saw the highest accelerated growth, up 117 percent between January and June 2014.
One of the reasons for Fendi’s success is its ability to expand to different countries and embrace social media without compromising on its exclusivity. It has 197 stores worldwide, including a flagship store in New Delhi.
The luxury brand is a relatively new player in India, having entered the market only in 2006. Given that fur and leather products occupy pride of place on its shelves, analysts had predicted that it would be hard to sell a Fendi in the country. But the company was undeterred and for good reason. Its Chief Executive Officer Pietro Beccari says India’s elite have not only accepted the brand, but embraced it.
The 89-year-old fashion house, which has been part of the luxury goods behemoth LVMH Group since 2001, has a history of creating iconic bags and reinventing itself to keep up with the young elite. It has been targeting its younger buyers through social media, apps and a funky range. Proof: Its 2014 limited edition Bag Bugs collection—which includes furry key chains and bag accessories that look like a cross between Angry Birds and Cousin Itt (from the Adams Family series)—was a hit. But for all its experimentation, Fendi relies on its superior craftsmanship to attract consumers, Beccari tells Forbes India. Edited excerpts from the interview:
Q. Fendi’s classic Italian designs are different from the traditional Indian sensibility. How do you reconcile the two?
Since the beginning, we have focussed on our expertise, high quality of materials, daring creativity and elegance. And India is a market that shares our love for heritage, craftsmanship and luxury. As consumers become more and more sophisticated, they want not just a product but a luxury product with a beautiful story [behind it]. An engagement with the brand and a sharing of a set of values—our passion for savoir-faire, design, art and beautiful things—are all very important. Through educating and story-telling, we form emotional ties with our existing and potential customers. At Fendi, we are constantly trying to strengthen our ties with the audience by selling a dream, selling a lifestyle, and offering our customers a luxurious taste of our products. In India, we stress heavily on our iconic bags, shoes and accessories.
Q. You have been in India since 2006. How do you view the country as a luxury destination?
India is a developing market with an interesting mix of high net worth individuals and the aspirational class, which is increasingly becoming the gamechanger by becoming consumers of luxury goods. An Indian customer is well-travelled and well-exposed. What really catches their attention is the detailing and craftsmanship.
Q. Has your foray into India panned out the way you expected it to?
(This story appears in the 14 November, 2014 issue of Forbes India. To visit our Archives, click here.)