Marcolin relaunch

Late in the evening of May 5, the eve of Mido, the Marcolin Group announced that it had entered into a license agreement with Ferrari for the production and exclusive worldwide distribution of vision and sunglasses frames. Together with the announcement a few weeks ago about the agreement with Tom Ford, this has contributed to increased interest in the company, borne out by the numerous reporters at the stand who were interested in gaining details about these agreements and future developments.

Maurizio Marcolin, Managing Director of the Group, went over the events that led to the two new licenses. 'The agreements with Ferrari and Tom Ford are the result of a strategy that we have been implemented since the events of end 2004 (the end of the license agreement with Dolce & Gabbana, Ed). We have tried to react immediately by recreating the right conditions that would allow us to maintain market share and continue to grow. It has not been easy and the solution came about in various steps.

The first was the license agreement with Kenneth Cole which included the optics channel and which increased American billings. The second was the continuation of the Roberto Cavalli license and the extension of the Just Cavalli line of products in order to give further momentum to a label that is very well known also outside Italy and is expanding.

We then sought stability through a long-term industrial pact: the Della Valle brothers entered the share capital as shareholders who could contribute to opening up the road to new labels. A public purchase offer followed and was concluded in February; we are now completing the drawing up of a four-year development plan.

Also thanks to the contribution by the Della Valle brothers, however, we immediately had the chance to accelerate negotiations with Tom Ford, whose strategy is in tune with ours in terms of the creation of this new brand which will be linked to luxury and top of the range products. Marcolin was chosen for the guarantees of product quality and distribution that it is able to provide.

Lastly, Ferrari is the most famous Italian brand in the world and it is linked to luxury. Its fame is so great that we will be able to differentiate product offer, starting with the top range and then perhaps extending it to the world of fans with sport and non-sport lines for men and women'.

'We are very pleased and hopeful for the future', Marcolin concluded, 'but we are also aware that now there is lot to be done in a context that is certainly not easy, but which we must all, our competitors included, deal with. The euphoria of the moment will fade, the results will be seen in the long run and the company is arranging to conclude these important projects in record time: the Tom Ford line will be presented at Simo in October together with the Just Cavalli collection, and Ferrari will be launched at the beginning of 2006'.

Naturally, in the meantime we will continue to consolidate the brands in the portfolio and which Marcolin presented at Mido. In addition to those in the luxury area, Montblanc and Cavalli, the company has completed the new Timberland, Miss Sixty and Replay collections and is investing in further improving market penetration. As far as the sports segment is concerned, Cébé is being reorganized and we are studying its re-launch, and the technological innovations in the new proposals from The North Face Eyequipment guarantee their success with those who seek sports eyewear.