| LONDON, May 7, 2009 – Morellato & Sector, Italy’s second biggest jewellery, watches and|
luxury group by turnover after Bulgari, plans to open more stores in carefully chosen markets despite the economic crisis, and is targeting Russia, the United States and the UK, its CEO Massimo Carraro says.
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Massimo Carraro, CEO, Morellato
Padua-based Morellato & Sector’s main markets after Italy are presently France, Germany and Spain respectively.
The group also has retail outlets in the Far East, notably China; in the United Arab Emirates including Dubai, and in India, Carraro told Jewellery Outlook during a recent business trip to London.
The group, known for its elegant, stylish and innovative good-value jewellery for the young at heart, is now looking to build up its retail presence in outstanding locations in other key markets, starting with a standalone store in Moscow in June, as part of a strategy to build its brand internationally.
“We prefer to have a selective approach (to expansion),” Carraro said.
“We are opening standalone stores in the best locations.”
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Morellato, which already has an outlet on Fifth Avenue in New York, is looking to add stores in the United States, probably in New Jersey and Miami. One of these planned new stores could open this year.
The group is also seeking to open a further outlet in central London after the successful launch of its store in the huge new shopping mall, Westfield London.
“April was the best sales month from the beginning for us, at Westfield,” said Carraro, a co-owner of Morellato & Sector with his brother.
TACKLING THE CRISIS
Carraro said that a well planned and executed expansion plan was essential to combat the
global economic crisis.
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The group was delaying some expansion plans until 2010 by which time the worst of the recession may be over, he added.
He expected that, for the foreseeable future, the group’s main market will continue to be Europe.
Morellato & Sector is determined to deliver good-value and well-designed products to its customers around the world, Carraro said.
Retail price points of Morellato jewels range from roughly 70 to 250 euros.
“Morellato is performing very well, and I believe that the main reason is the design and the materials that we use – we mix precious with non-precious materials in an innovative way,” Carraro said.
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“Furthermore, in the current crisis, I believe that the consumer, more and more, is seeking value for money.”
Morellato & Sector has a team of seven Milan-based jewellery designers.
Its products are “Made in Italy”, derived from long-established Italian skills in jewellery design and manufacturing.
Carraro said the quality of Morellato jewellery, rather than skilful marketing, was the key to its success.
“Consumers want to buy good quality at an accessible price,” he said.
He said that when the recovery finally comes, the economic climate will have changed markedly.
“I believe that one day when the crisis finishes – next year probably – the situation will not go back to what it was before. The customer will want real value for money. And for us it is important to go on investing – to be well-placed for the recovery.”