Billy Ngok, the Hong Kong businessman who runs Hembley International Holding, is cutting down on his other investments in the Italian fashion sector and concentrating on the sportswear brand Sergio Tacchini, which he bought in June 2008 out of bankruptcy proceedings. He is selling off the 50 percent stake he had bought indirectly in two other Italian-based fashion brands, New York Industrie and Gaetano Navarra, which did not provide the expected results and that he will sell the stakes.
Last December, Hembley had already announced the sale of its Well Metro unit, which specialiezes in the distribution and retailing of apparel and accessories in China, due to the credit crunch.
The Chinese group, which started as an apparel producer in 2000, will continue to manufacture clothing for international clients such as United Colors of Benetton, Moschino, Quiksilver, Lafuma, Lotto, Salewa and, of course, Sergio Tacchini, which was a major client before its acquisition.
Under the management of Jean-Luc Battaglia, formerly with Lotto and Diesel, Sergio Tacchini continues the delicate process of repositioning itself into a higher segment of the market, while remaining slightly less expensive than previous similar brands such as Lacoste and Fred Perry. Notably, it has closed down some 60 unprofitable stores in Italy and gotten out of cheap Italian mass market retailers such as Coop, Mercatone and Metro.
The process will lead to a decline about 10 percent in total revenues to about €52 million in the financial year ending next June 30, with about half of the turnover in Italy, but combined with other moves, it should lead to a rebound sooner or later. Including licensees’ revenues, wholesale-equivalent sales for the year are estimated at more than €90 million.
This past weekend, Tacchini inaugurated a new concept for its single-brand stores in the Orio al Serio shopping mall near Bergamo’s airport, which should be replicated in the company’s remaining 100-odd stores. Of those, 60 are still operating in Italy, including 20 corporate doors. The others are all franchises and are located in Greece, the Czech Republic and other foreign countries. In China, the first Sergio Tacchini store should see the light in Shanghai in a few months’ time.
The product range has been completely revisited with the help of an independent designer, Mauro Taliani, who has also worked for North Sails, Hugo Boss, Calvin Klein, Postcard and Pirelli, and the first fruits will be visible in the next fall/winter collection. Investments in sports marketing have been concentrated on less expensive tennis players with a good image such as Flavia Pennetti, currently rated as the best Italian female player, and selected events. Sergio Tacchini has replaced Asics as sponsor of the Montecarlo Masters, which start next Sunday, and Fila as the sponsor of the International Tennis Open in Rome.
