Paolo Fontanelli, CEO of Furla

LONDON, United Kingdom — This Great Recession has proven difficult for many fashion companies positioned ‘in the middle.’ Between the ultra-luxe brands like Hermès and Louis Vuitton (whose performance has continued to impress, despite the downturn) and the mass-market miracles like American Apparel and Uniqlo (who are also outperforming the market), are aspirational luxury brands like Coach, who recently reported that their profits have dropped 29.3 percent.

It seems the biggest problem with brands like these are that they don’t pass the value test at the cash register, leading Coach’s CEO, Lew Frankfort, to admit that “the new normal is hard to adjust to” and that he doesn’t believe that “conditions will ever return to what they were before the recession.” Is this the death knell for brands in the middle?

Not according to Paolo Fontanelli, CEO of Furla, the accessibly-priced Italian accessories brand that has recently gone on a retail binge in the UK, launched a menswear collection, and created a special initiative to leverage the talent of emerging shoe designers. I met with Paolo on his recent trip to London to find out why he remains so optimistic. The added bonus? Paolo brought along Michele Furlanetto, a company shareholder and member of the founding family, to make this a CEO Talk, times two. … Continue Reading