Premiata Expands Footprint in Luxury Retail: Strategies for Growth in Germany and Beyond

Table of Contents

1. Key Highlights:
2. Introduction
3. Strategic Expansion in Germany
4. A Harmonious Approach to Sales Channels
5. Diversifying the Product Range: Footwear and Beyond
6. The Importance of Brand Identity
7. Targeting Key Markets: A Focus on Europe
8. Conclusion: A Vision for Sustainable Growth

Key Highlights:

• Italian footwear brand Premiata is enhancing its presence in Germany with new concessions at KaDeWe and a focus on flagship stores in major European capitals.
• The company aims for organic growth in both direct sales and wholesale channels, seeking to harmonize the two for optimal market impact.
• Premiata's turnover reached €115 million in 2024, reflecting its strategic vision and commitment to expanding its brand identity across Europe.

Introduction

In the competitive realm of luxury footwear, Italian brand Premiata is making noteworthy strides to expand its market presence, particularly in Germany and across Europe. The company recently opened a new concession in the men's department of Berlin's prestigious KaDeWe department store, marking a significant step in its strategic growth plan. As Premiata prepares to launch a women's shoe section in the same venue, the brand is poised to elevate its profile within Europe’s luxury retail landscape. With ambitious plans that encompass flagship stores in major cities and a dual focus on wholesale and direct sales, Premiata is not just navigating the present market dynamics but is also crafting a long-term vision that emphasizes both quality and strategic positioning.

Strategic Expansion in Germany

Premiata’s expansion strategy in Germany underscores its commitment to deepening brand awareness and accessibility in one of Europe’s key luxury markets. The recent concession openings at KaDeWe signal a proactive approach to retail that aligns with the evolving preferences of luxury consumers.

New Concessions at KaDeWe

In 2023, the Italian brand initiated its expansion within KaDeWe by launching a dedicated space in the men’s department. This move not only showcases Premiata's commitment to the German market but also reflects the department store’s reputation as a luxury shopping destination. Following this success, Premiata plans to introduce a women's shoe section in the same store, further expanding its offerings and attracting a broader clientele.

Direct Sales Growth

Direct sales currently represent a modest 10% of Premiata's total turnover, but this segment is viewed as a vital growth area. The brand is actively investing in enhancing its direct sales strategy, aiming to amplify its importance in the overall business model. This shift aligns with a global trend among luxury brands to establish stronger connections with consumers through direct engagement and curated shopping experiences.

A Harmonious Approach to Sales Channels

Merging the benefits of direct sales and wholesale distribution is at the core of Premiata's growth strategy. Carlotta Mazza, the brand's marketing director, emphasizes that the goal is not to choose between these channels but to create a cohesive strategy that leverages the strengths of both.

The Role of Wholesale Distribution

Despite the increasing focus on direct sales, wholesale remains a cornerstone of Premiata's business model. The brand maintains a diversified retail presence across Germany, with established partnerships at renowned retailers such as Breuninger, Schuhhaus Prange, and Alsterhaus. This wholesale network not only fosters brand visibility but also creates job opportunities, further embedding Premiata within the fabric of the luxury market.

Future Retail Goals

Looking ahead, Premiata aims to solidify its market presence by strategically expanding its retail footprint. The emphasis on flagship stores in key international capitals indicates a long-term vision that seeks to elevate the brand's profile and enhance consumer engagement. While specific plans remain under wraps, the focus on Europe suggests a targeted approach that aligns with the brand's identity and market potential.

Diversifying the Product Range: Footwear and Beyond

While Premiata is primarily recognized for its footwear, the brand is also branching into apparel and leather goods, reflecting its ambition to become a more comprehensive lifestyle brand.

Expanding into Apparel

Premiata has introduced a clothing collection that, although still a small contributor to overall turnover at 5%, represents a growing segment of the business. This diversification not only broadens the brand's appeal but also allows for a more holistic consumer experience. The company is dedicated to refining this collection, ensuring that it aligns with the brand’s aesthetic and resonates with its customer base.

Strengthening Leather Goods Offerings

In addition to footwear and apparel, Premiata is enhancing its leather goods range. By investing in quality and brand identity, the company aims to increase its market share in this segment. This organic growth strategy is driven by customer feedback, ensuring that the products not only meet but exceed consumer expectations.

The Importance of Brand Identity

As Premiata navigates its expansion, the significance of brand identity cannot be overstated. The company is committed to building a cohesive brand narrative that resonates with its diverse customer base across various markets.

Crafting a Consistent Brand Message

Establishing a strong brand identity requires a consistent message that transcends product categories. Premiata's commitment to quality, craftsmanship, and Italian heritage serves as the foundation for its branding efforts. By weaving these elements into every aspect of its marketing and retail strategy, the brand aims to foster a loyal customer base that identifies with its core values.

Engaging the Consumer

In luxury retail, engaging the consumer is paramount. Premiata’s strategy involves not just selling products, but creating experiences that connect with customers on a deeper level. This approach includes personalized service, storytelling through marketing campaigns, and community engagement initiatives, all designed to enhance the consumer's relationship with the brand.

Targeting Key Markets: A Focus on Europe

While Italy remains the home base for Premiata, the brand is strategically focusing on expanding its footprint in several key European markets.

Germany and Beyond

Germany is a vital market for Premiata, accounting for 5 to 10 percent of its points-of-sale. With increasing investments in retail spaces and partnerships with local retailers, the brand is well-positioned to capitalize on the growing demand for luxury footwear. However, Premiata’s ambitions extend beyond Germany; France and Spain are also recognized as significant markets where the brand aims to enhance its presence.

Northern European Expansion

In addition to established markets, Premiata is eyeing opportunities in Northern Europe. This region represents a burgeoning market for luxury goods, and Premiata’s strategy includes tailored marketing efforts and localized product offerings to cater to the unique preferences of Northern European consumers.

Conclusion: A Vision for Sustainable Growth

Premiata's expansion strategy reflects a thoughtful approach to growth that balances ambition with sustainability. As the brand navigates the complexities of the luxury market, it remains committed to quality, customer engagement, and a harmonious integration of its sales channels. By investing in both direct sales and wholesale distribution, Premiata is positioning itself for long-term success in the competitive landscape of luxury footwear and beyond.

FAQ

What is Premiata's primary strategy for growth in Europe?
Premiata aims to expand its presence through new retail locations, focusing on flagship stores in major cities and enhancing its wholesale distribution network.

How does Premiata plan to balance direct sales and wholesale?
The company seeks to harmonize these channels, recognizing the value of both in achieving brand visibility and consumer engagement.

What markets is Premiata focusing on for expansion?
In addition to the German market, Premiata is targeting France, Spain, and Northern Europe to enhance its brand presence across Europe.

What percentage of Premiata's turnover comes from direct sales?
Currently, direct sales account for approximately 10% of Premiata's total turnover, a segment the company is actively investing in to increase its importance.

How is Premiata diversifying its product offerings?
The brand is expanding its product range to include clothing and leather goods, aiming to create a more comprehensive lifestyle brand while maintaining its focus on footwear.