Safilo discloses its 2020 branding strategies, licensed and proprietary
Safilo Group S.p.A, the Italian eyewear company listed on the Milan Stock Exchange, announced on 16th March the Group’s 2020 Strategic Plan, approved by the Board of Directors.
Key 2020 economic and financial targets net sales growth is expected at 6% year on year, reaching Euro 1.6-1.7 billion in 2020, with EBITDA growth of 2x sales, doubling 2014 EBITDA by 2020.
Luisa Delgado, Safilo Chief Executive Officer, commented:
“Safilo is a strong business, enjoys a great craftsmanship heritage dating back to 1878, has worldwide brands and positions in an industry offering significant growth potential and is supported by a healthy balance sheet able to fund investment in its future.
Our people are highly committed, embodying and promoting a strong Safilo culture of historical leading-edge resilience and agility which is a real asset to the Group.
The 2020 Strategic Plan will allow us to realize our potential. We are already growing our top line, but we can grow it faster by enhanced focus on our brand and commercial strategies.
There are significant internal structural re-designs that we are undertaking to boost supply chain, technology, go-to-market and cost efficiencies to drive a positive step-change in profitability.
Safilo’s market offers the Group excellent opportunity for sustainable, profitable growth.
The Board and the new senior management team have developed the 2020 Strategic Plan to position and drive Safilo to take advantage of this opportunity to the benefit of the Group, its customers and employees and to materially enhance profitability and shareholder value.”
On key corporate strategies:
“Safilo’s brand strategy is centered on its new Brand Building organization and focused on the development of deep expertise in different areas of marketing, with digital at their centre, to enable the brands to meet their communication and business objectives. The key objectives are to:
1) Achieve the appropriate balance between the five identified consumer market segments
(Atelier, Fashion Luxury, Contemporary Fashion & Lifestyle, Mass/Cool, Sport & Outdoor) in the eyewear branded sector, in order to develop an increasingly relevant brand portfolio in all business areas and in particular in segments with high future attractiveness
2) Achieve a more sustainable balance between proprietary and licensed brands, by increasing the share of proprietary brands to approximately 40% of total business(from 25% in 2014). This includes doubling proprietary brand sales (Safilo,Polaroid, Oxydo, Carrera, e Smith) by 2020 based on strong brand platforms and clear consumer targets for each of Safilo’s core proprietary brands ; these were developed in 2014 and Safilo is already seeing solid results from this action.
3) Continue to focus on growing Safilo’s licensed brands portfolio to its full potential, enhancing and leveraging each brand’s unique equity and positioning, while broadening its balance between brands.”
On “GO TO MARKET” strategy:
“Safilo’s new Global Commercial Strategy focuses onimproving the quality ofthe Group’sdistribution and sales,implementing an integrated set of trade terms and joint business planning with customers across a variety of channels. Safilo anticipates Developed Countries achieving year on year mid-single digit sales growth, driven by new business opportunities in Safilo’s historically underdeveloped markets such as Germany, UK, and the Nordic countries, and stronger channel and customer differentiation strategies in traditional stronghold markets such as North America, Italy and Iberia. Emerging markets are expected to deliver year on year double-digit sales growth, driven by the establishmentin 2014 of new dedicated sales regions in China, Asia-Pacific,Latin America and the Middle-East. Safilo’s progress in these markets is based on the opportunity to better diversify the brand portfolio in the different regions, while enlarging the distribution footprint in market white spaces.”