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Leonardo Ferragamo: Angels Need to Put on His Purple Shoes

In Italy, the family is each- factor. Many of the nation’s greatest firms are still owned and run by dynasties, and the distinction between the boardroom desk and the kitchen table is often blurred. So when Leonardo Ferragamo, son of the late Salvatore Ferragamo who founded the eponymous luxurious items empire, says “the family is the model”, you recognize he means it.

In contrast to “Brand Beckham”, assiduously cultivated by the footballer David and his celeb wife, Victoria, this is no Johnny-come-recently advertising wheeze. Salvatore Ferragamo began one of many world’s grandest luxury goods businesses when he opened his first shoe shop in Florence in 1927. Certainly one of his most celebrated pairs of sneakers were the ruby slippers worn by Judy Garland within the 1939 film The Wizard of Oz. He was additionally accountable for the metallic-strengthened stiletto heels made well-known by Marilyn Monroe.

By the 1950s, Salvatore Ferragamo was the shoe of choice for stars akin to Audrey Hepburn, Sophia Loren and Greta Garbo. All through, he insisted that each one the company’s merchandise ought to solely be made in Italy to ensure quality was not compromised.

Leonardo, who has labored in the company all his life, says of his father: “He was a genius, a special person. But I never received to know him effectively as I was seven when he died.”

When Salvatore passed away aged 62 in 1960, his spouse, Wanda, took over the running of the enterprise. With the assistance of her six youngsters, it has since expanded into a global concern, additionally promoting luxury equipment comparable to designer glasses, perfume, belts and scarves. Manufacturing has grown from 6,500 pairs of sneakers a yr when Salvatore died to around 10,000 a day now. In 2005 the company made a profit of nearly $50m (£25m) on gross sales of $718m. Asia now represents half its revenues.

Leonardo learnt the art of shoemaking within the household enterprise and went on to head the menswear division in addition to spearheading the drive into Asia. He is also liable for the family’s property investments and is the chairman of the yachting group Nautor, extra of which later.

But Salvatore Ferragamo is ready to alter. Last year, for the primary time in its eighty-12 months historical past, somebody from outdoors the household was brought in to run the business. Michele Norsa, previously the chief government of the rival Italian group Valentino, changed Wanda, now aged 85, who has turn into chairman as she cuts down her workload and prepares to move on the reins.

And in September, the corporate introduced its intention to float on the inventory market, though the family will retain a majority fifty two per cent shareholding.

The appointment of Mr Norsa, it’s hoped, will head off the infighting that has befallen other nice family-run Italian businesses, resembling Gucci and Pucci, when their patriarchs died and control passed to their kids.

“We’re a big family – there are sixty five children and grandchildren. It would be hard to choose a new boss,” says Leonardo, who’s reported to have been accountable for putting ahead the flotation plans to the family. “We have to modernise the corporate and get it ready for the following era.”

In interviews, ferragamo cassidy Wanda has all the time strongly rejected the potential for selling the enterprise, saying recently she was “almost offended” by the thought. But she has conceded that her children, between whom ownership of the company is divided, may really feel in another way. By going public, the second generation of Ferragamos will be capable to sell their shares if they wish.

It is tough to inform whether Leonardo has found it troublesome having an outsider running the family business. “It is part of the transition,” he feedback. “We share the identical values.”

He also insists that having to answer to outdoors shareholders is not going to be an issue. “They can be demanding. But that can be a great thing.”

Leonardo says that regardless of the flotation plans, Salvatore Ferragamo will stay true to its principles and the family will still be heavily concerned even after it lists in around two years’ time.

The dynasty is one in every of the corporate’s biggest assets, he says. “An organization owned by the family can switch a level of safety and integrity. It gives a assure of continuity. We do not simply rely on one man who comes and goes. The household is the brand.”

Central to the Salvatore Ferragamo brand is the “Made in Italy” stamp found on its merchandise, denoting high quality and good workmanship. For instance, the corporate’s formal Tramezza shoes are hand-made in a factory close to Florence by half a dozen staff. Nevertheless, production prices are a lot increased than these of its rivals, lots of which have shifted operations to Asia. Leonardo’s brother, Ferrucio, as soon as complained in an interview that some of the corporate’s employees labored fewer than eight hours each day and were “spoiled”. They wanted, he hinted, to adapt to the worldwide economy.

Leonardo does not promise that every one the company’s goods might be made in Italy indefinitely: “We now have to maintain our eyes open. Issues change in the world. There are other alternatives world wide. We’ve got an open perspective to it.”

Other than sneakers, Leonardo’s great love is crusing, a ardour he has been in a position to bask in some fashion. In 1998, he bought Nautor, which makes the famous Swan yachts, having sailed its boats for years as an enthusiast. In his Italian lilt, he recounts the “lovely story” of how he first got here to be involved with the company, which has established such racing occasions because the Swan Regatta and the Swan Cup, and also scooped the trophy in 1973 for the primary Whitbread Spherical the World Race.

“I went to go to the manufacturing unit. A new world opened up to me,” he recalls. “I was amazed at the quality and reliability of every worker, especially the pleasure they were taking to make it special.”

Leonardo appreciates good craftsmanship, whether or not in a shoe or a boat. Like Salvatore Ferragamo, Nautor focuses on high quality not quantity, making simply 40 yachts a year, which range in worth from €400,000 (£250,000) to several million. “[Shoes and boats] are each types of transportation,” he adds with no hint of irony, warming to his theme. “The Swan yacht is about branding and high quality. Shoes will not be just about aesthetics however what’s inside them. It is all about the id of the product.”

BIOGRAPHY
Born 23 July 1953.

Training University of Imede, Lausanne, Switzerland – enterprise administration degree; Columbia College, New York – administration and finance degree.

Career at Salvatore Ferragamo
1973-seventy five: assistant to director, leather-based division.

1975-80: director, males’s shoes division.
1980-87: director, males’s division.

1987-94: business director, Europe/Asia.
1994-2000: chief executive, Europe/South America/Asia.

2000 to now: chief govt of the holding firm.
Other Interests

Ferragamo Carla Calfskin Pump Brown

Purchased Nautor in 1998, changing into chairman. Also chairman of the board at Camper & Nicholsons, the English yachting business purchased by Nautor in 2001.