Philipp Plein is going at full throttle
Philipp Plein's expansion is apparently unstoppable. In a few years, the German designer has become a new must in the luxury segment, his ready-to-wear brand for men, women and children growing from €8 million in sales in 2008 to nearly €200 million in 2016.
"We generated a revenue of €170 million in 2015, and we expect to reach €198 million this year," said worldwide Head of Sales Ennio Fontana.
The quality of its products, 70% made in Italy, and especially the strength of Philipp Plein's brand image, make the company both highly profitable and, with its staff of 250, very flexible. In 2015 the brand invested €18 million in marketing, communications and shows (it has been showing in Milan since 2009).
What is the key to this success? It is the brand's ability to offer its customers a remarkable collection of accessories and clothing, recently enriched by eyewear and watch lines.
"In terms of prices, we chose an upmarket positioning from the start, alongside labels such as Balmain or Givenchy. We offer a unique luxury range, we were in fact the first to launch Swarowski-covered sneakers. Now everyone does it," said Ennio Fontana.
The label's headquarters are located in Lugano, Switzerland, and the company relies entirely on self-financing. Since its creation in 2004, Philipp Plein has been growing at a steady pace, despite a downturn on the Russian market last year and a slowing-down in China.
Its key markets are Asia-Pacific (28.4 %), chiefly China and South Korea, Italy (16.7%) and the former Soviet republics, whose share of total sales fell from 17% to 12.1% today.
France represented 7.7% of total sales, and in the last few years it provided Philipp Plein with the best growth performance and expansion opportunities. In France the brand operates stores in rue de Rivoli, Paris, in Courchevel, Monte Carlo, Cannes and Saint-Tropez.
But it is on the USA that the label now wants to focus. It has recently appointed Graziano de Boni, a former manager at Armani, as head of its US subsidiary. For the time being, the USA are a small market for Philipp Plein, with stores only in New York, Miami and Beverly Hills, Los Angeles, but the objective is to reach 15 stores by the end of 2017.
Philipp Plein is present in 60 countries, through 600 multi-brand clients operating 800 stores. It also operates 73 mono-brand stores, 14 of them directly-owned, and 9 outlets. The new openings forecast for 2016 is about forty stores.
Also on the cards is the relocation of the brand's Milan headquarters, to prestigious new premises very close to via Montenapoleone. The new venue, 3,000 m² on seven levels, will be inaugurated at the next September fashion week.
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