Diego Della Valle, owner of the Tod’s Group, believes in the opportunities of luxury: “The recovery of luxury will come in the spring of 2025”. This means entrepreneurs should remain calm and not change their strategies. Except one: pricing.
The opportunities of luxury
Diego Della Valle predicts that the current downturn of the luxury segment could end in summer. “In seven or eight months, this crisis will end and, as it happened after the pandemic, maybe we can take advantage of it“, the Marche entrepreneur told AdKronos on the sidelines of the Tod’s fashion show (part of Milan Fashion Week program). We have had several moments like this, and we are all in the same boat. The market and Italian companies have responded to these moments by not changing their quality, their product philosophy and the narrative of the Italian lifestyle, and they must continue to do so. We have to be careful and in a while we will recover”. On the subject of Tod’s 2024, Della Valle remained balanced and replied that “we will have to wait until October to have an answer”.
Just the prices
There is only one strategy that should be revised: pricing. “The uptick affects all of us. I think the post-pandemic has made us speed up a bit too much”, Tod’s chairman observes. “We see this in restaurants, hotels and trains. I have the impression, however, that this moment leads to a consideration, where everyone goes back to his own house and sees how to improve. We need to reflect“. Della Valle also pointed out that delisting is providing benefits and freedom (as expected): the group does not have to publish results every quarter. “Many good entrepreneurs are looking a little less at the numbers nowadays, and maybe it’s the right thing to do to develop the business”.
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