The findings of the report revealed that Ferragamo is generally very strong in every aspect of their retail mix. However, there are some changes that can be further improved like the layout of the store is not very appealing compared to their competitors. There is also a lack of promotional advertising in their retail communication; the report includes factors such as lack of brand awareness and types of communication methods that must be closely looked into.
It is recommended that the retail store improve their customer service. Sales Assistants tend to treat their customers differently according to their age and dressing sense. More special services like engraving of watches and wallets should be included to their merchandise to make it more appealing and personalized.
The purpose of the report is to study the retail mix of Ferragamo in Singapore and to apply what we have learnt from this module. The report will also make recommendations to improve the situation.
Method of investigation
For the method of investigation, we did web research on the information regarding to Salvatore Ferragamo. We also made out way down to the retail stores in Ion, Takashimaya Paragon to take a look at how they operate the retail shop as a whole. We also asked the sales assistants questions there to clarify our doubts.
The Company, Salvatore Ferragamo was founded in 1927, is one of the most prestigious and internationally known luxury brands, with more than 450 stores in over 55 countries. Footwear, handbags and small leather goods, scarves and ties, men's and women's ready to wear, bijoux, watches, fragrances and eyewear are the products created and marketed by Salvatore Ferragamo himself.
In addition to its historical Florence flagship store in Palazzo Spini Feroni, Salvatore Ferragamo has 2 flagship stores in Milan, 2 in Rome and another 14 stores in prestige high-streets in Naples, Genoa, Turin, Capri, Portofino and Venice. In Europe it has 58 directly controlled stores in all around. Salvatore Ferragamo operates throughout the territory with 25 directly controlled points of sale and 15 of them in the United States. In addition to its freestanding stores, there are many shop-in-shops and corners in top American department stores. Salvatore Ferragamo recently extended its direct control in Central and South America by setting up Ferragamo Mexico, which directly handles 10 points of sale in the country. It also has a select distribution circuit in numerous countries, in South America.
Salvatore Ferragamo has had directly controlled operations in this key country since the early 70s and can now count on a distribution network of 64 directly controlled points of sale. It has two flagship stores, one in Tokyo, in the Ginza district, and the new flagship in Osaka. Twenty-seven percent of its revenue in 2005 came from Japan only. Through its Hong Kong headquarters, Salvatore Ferragamo controls its distribution operations in the following ten countries in Asia and Oceania totaling 64 directly controlled stores.
Salvatore Ferragamo is a specialty store located in Ion Orchard, Paragon, Takashimaya, Isetan Scotts, DFS Galleria Orchard, Changi Airport and the newest store in one of our integrated resort, the Marina Bay Sands. Salvatore Ferragamo is considered a specialty store because as it has a narrow variety and deep assortment. The largest store in Singapore is the Salvatore Ferragamo Boutique in Ion Orchard to date. In Salvatore Ferragamo’s target market are consumers with specialty shopping behaviours. It is when customers know what they want to purchase especially expensive designer labels such as Ferragamo.
Specialty stores also have high quality of customer service, as the customers are often very important to them, they aim to make customers loyal to their brand. Other than their retail stores located at shopping malls they also operate from electronic retailing on their...