Area 98: East Asian technology and Italian style - a successful mix
Following a positive 2011, the ambitious objectives for 2012 are to be achieved by applying increased leverage on internationalization. This is how new company Area 98 will approach the new year, when growth is estimated to be around 18%, according to the statements made in this interview by new CEO and 33% shareholder Giovanni Torossi.
- Internationalization seems to be the watchword for Area 98. Is this the case?
Although Area 98 is a young company – Torossi explained – it is especially dynamic and innovative. The strategic aim of covering new markets stems from the company’s high potential which, through a corporate structure of Italian and East Asian partners, can maximize competitive advantages in the reference segment and optimize international distribution to guarantee the successful pursuit of the ambitious objectives set for 2012.
- How much is this choice affected by the new corporate structure? How is it made up?
With our new corporate structure we can increase the presence of our brands on major international markets and particularly in the Far East, an area that has always been extremely receptive to Area’s collections. Currently, Area 98 is made up of Hong Kong-based Kingsong Company Ltd, which has a 57% shareholding, and Eye Fashion Company Ltd, which holds 10%. I hold the remaining 33%.
- East Asian technology and Italian style: can it really be a successful mix and why?
I would describe the meeting we had with our East Asian partners as "synergic". Because of their leading-edge technology, they totally understood the technological inputs by the Italian style office, with a perception that will guarantee the correct interpretation of the original design and its Italian personality – something that is particularly important to Area 98. Moreover, our Chinese commercial partner will be able to distribute in the Far East a product of Italian conception but with the appropriate fitting, thereby enabling the company to expand its commercial coverage, offer an increasingly wider range of products and excellent after-sales service.
- In the light of the good results already achieved during the past six months, which market is the most promising?
The second six months of 2011 confirmed the effectiveness of the strategic approach adopted by Area 98 for its expansion policy and fostered the growth of the company, not just in one market but in several key areas. From this point of view, I wouldn’t say that one market is more promising than another but I would point out that we had excellent results in Germany, Finland, United Kingdom, Poland and Australia. The positive trend influenced by the new corporate structure also facilitated the acquisition of new areas such as the United States (where direct distribution is envisaged), Canada, East Europe (Latvia, Bulgaria, Slovakia and Kazakhstan), and Thailand.
- Let’s look at 2012. What specific aim do you think you will achieve?
For Area 98, 2011 was a particularly positive time with 2011/2010 billings increasing by 23%, but in 2012 growth prospects are estimated to be +18% with impetus coming from the German market, which is very receptive to our collections.
