The fashion and accessories division of the Swiss group PRF-Pelletteria Richemont Firenze is doubling its production space in Scandicci and has announced new industrial acquisitions. FashionNetwork.com spoke to president Cesare Landi and CEO Domenico Oliveri on Tuesday at the opening.
FashionNetwork.com: What does this investment represent?
Cesare Landi and Domenico Oliveri: It’s a demonstration of confidence in leather goods and in the future of this business. It’s also a signal we’re sending that manufacturing is an essential factor in creating value. Mastering the product- from development to industrialisation and production- is a value worth preserving, especially in this region, which is considered the cradle of Italian leather goods. The French call it “métiers d’art,” but craftsmanship was born in Florence. We have a responsibility to carry on this tradition, which originated in the Middle Ages and flourished during the Renaissance.
FNW: Which areas have you renovated?
CL & DO: The facility covered 5,000 square metres. A year ago, we decided to renovate everything. Today, we have more than doubled the space to 12,000 square metres.
FNW: Will there be a second phase as well?
CL & DO: Not as an expansion, but as a renovation. We’ll also be renovating the cutting centre and prototyping departments. Specifically, we’ll double the size of the cutting centre to bring in-house production up to 100% of our needs. This second phase will be completed by the end of the financial year, which for us ends in March.
FNW: What is the value of the investment?
CL & DO: About 10-12 million euros. Beyond the financial investment, we’re betting on the growth of the workforce and the region. We have a network of more than 2,000 artisans.
FNW: How many Richemont brands do you manage?
CL & DO: This project began before the pandemic, and several brands have gradually been brought in-house. We now manage five of the group’s brands: Montblanc, Cartier, Chloé, Serapian, and Dunhill.
FNW: And will you stop there?
CL & DO: We have many ambitions, especially to bring other brands in-house. “Stopping” is not, shall we say, a verb that’s part of our vocabulary.
FNW: This opening is significant for the district, which hasn’t seen any new openings in quite some time. Are there already signs of a recovery in the leather goods sector?
CL & DO: It’s not an easy time for the sector, but Richemont is bucking the trend. The parent company reported its results a few weeks ago and is experiencing a positive period for the financial year ended in March, with sales up 5% on a reported basis and 11% at constant exchange rates, to 22.4 billion euros. The fourth quarter confirmed this continued momentum, with a 13% increase at constant exchange rates- or 4% on a reported basis- to 5.4 billion euros, exceeding analysts’ expectations.
FNW: How many new hires are planned?
CL & DO: Over the past three years, we have grown from 150 employees to 250. With the new cutting centre, we’ll be bringing on new staff. By the end of this period, we could even exceed 300 employees.
FNW: How have you reorganised your external supply chain?
CL & DO: We have a responsible sourcing department that reports directly to our Swiss parent company, which helps us carry out supplier audits. We conduct around 300 a year. They are an opportunity to work better together. The vast majority of our partners view them positively because they help them grow. Minor issues are resolved together. But when a partner is unwilling to make corrections, we terminate the relationship. In this way, our supplier base improves in both quality and scale.
FNW: How can craftsmanship and innovation coexist?
CL & DO: We have designers who work by hand, and others who use CAD. This blend is a hallmark of our savoir-faire and of this region. Someone once said: “One foot in the past and an eye on the future.” The skill and expertise of the artisan still make all the difference. The machine is there, but the artisan’s touch is evident in the product.
FNW: Following the model of Emilia-Romagna’s Motor Valley, will a Tuscan Leather Valley emerge?
CL & DO: The region is very dynamic. This is a positive development, and we’ll be more than happy to participate. We’ve already begun discussions with industry associations.
FNW: What are the group’s next steps for development?
CL & DO: We’re considering new industrial acquisitions. In the leather goods sector, most of the work has already been done. Sixty to seventy percent of our operations are in Tuscany, but we also have companies in Emilia and the Marche. Now we’re looking at other categories, such as footwear and clothing- building on Miles, the Vicenza-based manufacturer specialising in high-quality knitwear, which we brought in-house three years ago. We acquired the company and now work alongside the former owners. We’ve also acquired the Alaïa archives, which are incredibly valuable, since Miles was already producing for the French fashion house at that time.
FNW: Which stages have you brought in-house?
CL & DO: The entire development process, which includes materials research, metal fittings, and electroplating. Pattern-making- that is, defining the models, the first prototypes, the sample collections- and part of production.
FNW: Besides leather goods, do you also make clothing?
CL & DO: It’s a very complex category. From an industrial standpoint, it comprises at least 10 subcategories. Men’s formalwear differs from women’s. We handle it ourselves- we develop and design the products for our maisons- and then we rely on certain external partners for more specialised needs.
FNW: Have you integrated AI into your processes?
CL & DO: With Montblanc, we’ve launched a study to help cutters identify defects that aren’t immediately visible to the naked eye. Machine learning makes them easier to spot, but we’re still in the preliminary phase. AI is a tool to aid work- not a substitute for work, nor, of course, for people.
FNW: Do process innovations also improve environmental impact?
CL & DO: With cross-cutting (full-hide cutting), we can optimise and make the best use of the leather. And producing both large and small leather goods at the same time recovers otherwise wasted space. This also has a beneficial effect from an environmental standpoint. Sometimes, thinking ecologically also yields a significant economic advantage.
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