Italian luxury shoe manufacturer Doucal’s aims to double sales
Having just celebrated its 50th anniversary, Italian luxury footwear brand Doucal’s is looking ahead to the next 50 years with expansion at the forefront of its strategy. Founded in 1973 by Mario Giannini, the company is now in the hands of the second generation, with sons Gianni Giannini as image and product manager and Jerry as head of finance and commercial.
The pair can look back on a positive anniversary year in 2023, with Doucal’s achieving double-digit growth in sales compared to the previous year, despite turbulent times – in recent seasons, growth has averaged 30 percent. Nevertheless, annual sales of 27 million euros fell short of the targeted 30 million euros, said Gianni Giannini. In the long term, sales are forecast to double by 2030.
The company anticipates it will achieve this goal in the coming years and Giannini expects double-digit growth again in 2024. More importantly, it's imperative that the adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) is strong and a significant margin is maintained. Only in this way can the company continue to invest in human capital, brand promotion and new technologies, as was the case last year with the acquisition of two of its own factories.
“Solid foundations and principles allow the company to face such [difficult macroeconomic] times without suffering downturns or negative surprises,” said Doucal's boss, when speaking to FashionUnited. “So far, 2024 has started well in terms of turnover, so the growth trend continues.”
Doucal’s on expansion course
Elsewhere, Doucal’s has set about continuing its growth in Germany, Austria and Switzerland (DACH), where it believes there will be an increased focus on products like those it sells “for a whole series of economic and political reasons,” said Giannini. The reasons for this are the “quality of ‘Made in Italy’, an excellent price-performance ratio, great wearability, soft materials and the quality of construction”, he elaborated.
The DACH market currently accounts for 10 percent of its business, with 46 retail partners located in the region. In Germany, for example, in addition to its own shop-in-shop area in Berlin’s luxury department store KaDeWe, the brand can also be found in Munich fashion retailer Lodenfrey and Braun Hamburg. In Switzerland, meanwhile, the brand has a sales area at Globus.
While its presence in Europe is already strong, Doucal’s has also expressed interest in growing outside of the continent. The brand is currently developing a new sales strategy for the US and is further focusing on the Middle East, which is one of the markets that the brand wants to tap into in the coming years.
Next to this, there are additional plans to expand its retail presence overall, while further broadening its product range, particularly in the realm of women’s footwear. In brick-and-mortar retail, Doucal’s is particularly focused on opening “soft corners” in major department stores and pop-ups to increase visibility.
In addition to wholesale, Doucal’s is also represented with three physical stores – Milan, Paris and Doha – as well as its own online shop.