Yahoo Finance Blauer USA’s Enzo Fusco on Outerwear Sector, Taking Brand Home to the U.S.
MILAN — When entrepreneur and designer Enzo Fusco sealed a deal with the founding family of famed American brand Blauer USA to introduce it to the fashion market in 2001, he did not know that, fast-forward 20 years, one of his main goals would be to take the company back home to the U.S.
Through its FGF Industry company Fusco has breathed new life into Blauer USA, heightened its fashion credentials and turned it into an appealing outerwear brand. In 2017 Fusco snapped up a 50 percent stake in the company from the descendants of founder Louis Blauer, while early last year his firm FGF Industry took over Italian premium outerwear brand Ten C, thus becoming a stronghold in the outerwear sector.
More from WWD
A grounded and pragmatic entrepreneur, Fusco believes there’s still untapped potential for Blauer USA. For instance, he’s committed to bringing the brand back home and making a push in the U.S., a market that he described as “complex and articulated.”
“We’re looking for a strong partner there or alternatively to set up a local subsidiary with which to open a store serving as a promotional channel there. All this requires a lot of investments,” Fusco told WWD.
FGF Industry has had a now-inactive U.S. subsidiary since 2013, a few years after it took over the C.P. Company brand, then sold it to Tristate Holdings in 2015.
Aiming to expand its footprint internationally, Fusco did not rule out future merger and acquisition activity targeted at increasing the international appeal of the brands in FGF Industry’s portfolio. He expects such a move to happen not before 2022.
“There are only two ways forward, either we do it on our own step by step with our means or we open up the company to investors, like many have done, a move that helps you expand across markets, product categories and retail more rapidly,” Fusco explained.
He noted that in the past 10 years the company’s steady growth lured the interest of investors, but he has always turned offers down because none was fitting with the company’s strategy in that moment. “We’re a healthy company driving at a speed of 36 miles per hour, when in fact we could step on the gas… I’m cautious and I think it’s not a matter of finding a partner but the right one,” he noted.
Fusco attributed the company’s and brands’ resilience and financial strength to the booming outerwear category, ignited by the pandemic-induced casualization trend. To this end, the entrepreneur commented on the Moncler deal with Stone Island unveiled last December, saying that “the operation was a smart move as much as [Moncler chairman Remo] Ruffini himself is a clever entrepreneur.”
“I think it was spurred by the understanding that Moncler had to diversify and could not rely solely on the sale of puffer jackets, and it also nods to outerwear and sportswear increasingly becoming part of the luxury sector. After all, every other brand, including Gucci, has been tapping into the category looking at what outerwear specialists are doing,” he explained.
Fusco is not targeting any acquisitions for the time being, but is busy fine-tuning the company’s strategy with a tailored approach for each brand in the portfolio.
Blauer USA experienced steady growth in 2020, increasing its turnover by 25 percent, which includes part of the revenues coming from the fall 2021 sales campaign, which was moved forward by two months and held in November, allowing the brand to scoop up 35 to 40 percent of the season’s sales in advance.
In 2020 the company posted 55 million euros in total sales, including royalties from its licensed footwear business. Revenues were down 3 to 4 million euros compared to 2019 and Fusco projected steady growth in 2021, which is on track to record 65 to 68 million euros in sales.
Now well established in Europe, including in countries such as Italy, Spain, Czech Republic and Germany, Blauer USA is looking to Asia in addition to the U.S. In the former region, discussions with a South Korean distributing partner are advanced enough to expect the deal to close in time for the fall 2022 sales campaign.
In addition to South Korea, other target countries include Japan and especially China.
“We approached China in the past but it didn’t [work]. Unfortunately, the wholesale channel has changed dramatically over the years, the role of importers and sales agents is no longer so relevant. The real goal is to tap into a local team and open a direct subsidiary. These changes need to be sensed and understood and embraced in a timely manner,” Fusco explained.
The entrepreneur is also banking on online growth as the channel now represents only 7 to 8 percent of the company’s total sales, including Ten C. He described the latter as a brand with “global appeal,” as demonstrated by its resonance and distribution in Japan and South Korea.
FGF Industry has a team of four sales agents handling the global campaign for Ten C, whose popularity grew stronger after it collaborated with Chitose Abe on a range of puffer jackets for Sacai’s fall 2020 season. To this end, Ten C enjoyed a good 2020, increasing its sales by 50 to 60 percent. “It is now viewed as a luxury brand and taps into that market,” Fusco noted.
Sign up for WWD's Newsletter. For the latest news, follow us on Twitter, Facebook, and Instagram.
