Italian luxury men's brand Brioni fights the crisis

This fall, the Italian menswear luxury brand Brioni introduced a more modest product than the original hand-tailored line-up, the T-shirt. This is a signal that the financial crisis and changes in consumer habits have forced even the most conservative, family-managed luxury brand manufacturers to adapt to a new world.

The Italian fashion house Brioni is known for creating James Bond's "Queen" informal dress and hand-stitched suits priced from $4,000 to $47,000. But this fall, it launched a much more modest product than the original clothing line -- T-shirts.

Of course, a T-shirt with luxury Italian hand embroidery and a price of $250 may not be called ordinary. Although Other high-end Italian clothing brand companies such as Armani and Ermenegildo Zegna have already done so many years ago, it is the first time Brioni has introduced such low-end products. Since its inception in 1945, the brand's image and profits have been based on formal dress and on the basis of wealthy urban and rural style gentlemen.

Crisis forced Brioni to change

This is a signal that the financial crisis and changes in consumer habits have forced even the most conservative, family-managed luxury brand manufacturers to adapt to a new world.

Unlike its larger competitor Zegna, Brioni refused to move its manufacturing from Italy to a more cost-effective place like Mexico. In spite of this, the impact of the global financial crisis has spread to the Brioni's Abruzzo region, a mountainous area that is located two hours and a half east of Rome. What remains unchanged is that the tailors are still young people. Apprenticeship, and the portrait of the saint is still hung like the wall of the company's factory.

The private company stated that it will not make accurate predictions on the financial situation this year, which further explains that the economic environment is not optimistic.

"If we are lucky, we can make profits in 2009." said Andrea Perrone, the grandson of the founder of Brioni and the company's president.

Brioni said that last year they had a very good profit, total revenue reached 200 million euros, removed costs, and had a profit of 32 million euros (45 million U.S. dollars) before calculating currency depreciation, taxes, interest, and amortization. In 2007, it was basically the same. The launch of the T-shirt coincides with the growth of the new generation of Brioni. These tailors who serve the new generation are often made for celebrities like South Africa's Negro leader Nelson Mandela, American real estate mogul Donald Trump, and British Prince Andrew. Suits and dresses. "This is a stimulus to the market," Peronne, 39, said. "It means we can make everything from shoes to hats."

The introduction of T-shirts is "a signal from Brioni - the focus on younger customers and the lifestyle of its loyal customers has changed dramatically," said Professor Armando Blancini of the Department of Management at Bocconi University in Milan. The professor is also the managing director of the Altagamma Foundation, the Italian Federation of Luxury Brand Manufacturers.

The new T-shirt also represents a new starting point for the Brioni brand, but it is also a reflection of the brand's traditional heritage.

"It should not feel the same as Hanes." Perrone whispered softly. He is the heir to the aristocratic temperament. After three years with the other two presidents managing the company from 2006, Perrone has just become the first independent president of Brioni in July this year.

"Even if you are loyal to the brand's heritage, you can't ignore the direction of the market." Mr. Perrone added his hand to the logo decorated on the T-shirt. It was the development of the Brioni brand in the 1950s and 1960s. Sweet period logo.

The partner of Bain Consulting, Loudia Dpicio, said that the high-end dress market is shrinking faster than the general men's market. Dapiki specializes in tracking the status of the luxury industry, she said: "If you have a lot of beautiful suits in your closet, then you can postpone buying new ones."