Stefano Ricci explains the ultra-luxury market. The one formed by millionaires and billionaires who don’t bat an eyelid at a $40,000 exotic leather jacket. “Many of our customers don’t feel comfortable when they go into other shops because they are not super cool or can’t find their size,” says Niccolò Ricci, CEO of the brand and eldest son of founder Stefano. The brand chases neither influencers nor young customers, protects the supply chain and does not raise prices.
Stefano Ricci explains ultra-luxury
“Our customers are self-made millionaires and billionaires: they do not look at celebrities or influencers and are very proud of what they have achieved,” says Niccoló Ricci in an interview with the South China Morning Post. Cigars, vintage cars, fine wines and luxury watches are some of their most popular “hobby purchases”. Customers come from countries whose economies are growing. For example: Azerbaijan, Kazakhstan, Armenia and Georgia. And they buy crocodile leather shirts and other garments with which they can flaunt their status.
No price increase
The pandemic in China (a market that used to generate 30% of the brand’s turnover and is now down to 20%), the collapse of Hong Kong and the war between Russia and Ukraine have affected Stefano Ricci’s business. Its turnover has, however, returned to 2019 levels. How did they manage this? Firstly, by not chasing after young people under 30, who are not very loyal to brands. Secondly, despite the fact that it would have all the credentials to increase its price list, as luxury brands continue to do, it preferred to go in another direction. “For a certain level of clientele, spending on clothing is irrelevant. They will still spend $100,000 a year with us. It is those who spend less than $50,000 who feel the effects of inflation,” explains the brand’s CEO.
Protecting the supply chain from rising costs
Ricci’s biggest source of concern is the supply chain, which is under pressure from rising costs. “Our suppliers have been hit by huge bills,” the CEO concludes, “and it is almost impossible for them to survive. But they are like family to us, since we have been working with them for 20 or 30 years. So, we have to protect and support them”.
In the photo from stefanoricci.com, from left: Niccolò Ricci, Stefano Ricci and his wife Claudia, Filippo Ricci
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