Evolving Scenarios for Multi-Brands
Guido Grassi Damiani, President of Damiani Group, explains the new expansion plans, and the strategies for multi-brands and flagship stores
By investing in Luisa Via Roma, Damiani consolidates its expansion plans in the luxury retail world.
The investment aims to seize new growth opportunities, complementary to those of our core business, and to strengthen our digital expertise. Luisa Via Roma has managed to impose itself on the market with an innovative business model in a perfect mix between retail and digital distribution. We believe that, while in-person meetings in physical stores remain central, online sales will also increase greatly in our sector in the future.
How should a multi-brand jewelry store be re-imagined?
While multi-brands must be competitive and meet the multiple needs of an eclectic and demanding clientele, they also need to evolve. It is essential to keep top, sought-after brands and that stock flows are well managed. It is important to avoid having too much stock, but it is just as important to ensure that key products are always available, otherwise there is a risk of limiting sell-out performance. The staff also plays an important role; they must be trained in all brands from a technical and cultural point of view and also have empathy skills in order to propose the best product to the customer. Lastly, the store must have its own identity: a central location, fine furnishings, visual merchandising to capture attention, but experiences should also be created with events and services to accompany the product and digital activities that involve the customer. The multi-brand store must be organized like a club that welcomes its aficionados and Damiani is always there to support its retailers in this, to help them win market share.
Multi-brand or single-brand?
In order to define the best channel, you have to consider the brand’s moment of evolution and the location of the store. The single-brand is important for those brands with awareness that want a strategic showcase in large cities or tourist locations. The multi-brand store, on the other hand, is an optimal sales outlet in small towns where there are still many eager local customers.
What is a company’s duty towards a retailer?
The brand must always support its multi-brand partner in sales staff training, in strategic product selection and in communication activities to encourage sell-outs. We have been partners of many retailers for generations and have built stable and lasting business relationships. We are pioneers in wholesale but we are the only international brand that also distributes its own jewelry through selected retailers with evolving services that our partners can access. Soon, for example, they will be able to open e-corners, which will help increase their online sales. We are also ready to invest in their capital, as we did with the historic Bruno Maria Zimmitti store in Syracuse.
