MILAN — Italian model Velasca continues to develop its retail and on-line enterprise, however can be beginning to discover the potential of wholesale distribution as its whole look collections acquire steam with shoppers.
Established in Milan in 2013 as a direct-to-consumer males’s footwear model by Enrico Casati and Jacopo Sebastio, Velasca has been ramping up its provide with a ready-to-wear line and ladies’s footwear.
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“We wish to plant a flag in markets the place we’re not current but, and dealing with third events has a number of upsides: it helps us be much less self-referential, contributes to additional our credibility, and having accessibility to a shoppers’ database is stimulating,” mentioned Sebastio. “It may assist profile our opponents and contributes to our shift to branding from pure product.”
The younger entrepreneur additionally admitted there’s a monetary benefit, since Velasca has to date channeled its investments into instantly operated shops, which have grown to whole 30. “Testing franchising with our Velasca look however operated by companions which have native expertise is a brand new different for us,” he mentioned.
The economic system hasn’t dampened the expansion of the corporate, which is anticipated to shut 2025 with gross sales of 27 million euros, up 15 p.c on 2024. This compares with revenues of 13.5 million euros in 2021. Revenues within the newest quarter rose 33 p.c, Sebastio added.
Velasca has opened 10 shops prior to now 12 months, in cities from Verona, Padova and Forte dei Marmi to Copenhagen and Munich. It additionally opened a second retailer in New York and a second unit in Paris.
“Our enterprise is at the moment equally break up between retail and our on-line gross sales, so we predict that because the collections evolve, we might add a brand new block to our construction with the wholesale channel,” mentioned Sebastio.
This additionally stems for seeing good suggestions from a primary expertise with main Istanbul-based retailer Boyner and its subsidiary Horizon. “We’ve seen nice curiosity in Velasca for its Italian high quality and authenticity on the proper value. Customers are more and more smarter they usually can see the worth in our merchandise, which even have that easy contact of Milanese aptitude that makes a distinction,” mentioned Sebastio proudly. He added that Velasca has already been out there at Rinascente in Milan for the previous two years.
Velasca has been establishing a showroom on the ground under its workplace in Milan and can begin scheduling appointments with wholesalers in November.
“We really feel we might be amiss if we didn’t additionally discover this channel,” mentioned Sebastio, citing for context a single order from Turkey for 200,000 euros.
Velasca has two personal fairness traders, P101 and Milano Funding Companions. “They see the sturdy potential of the model,” and should not on the lookout for a method out for the time being, Sebastio mentioned, responding to a query a couple of potential exit given their funding has already spanned a decade.
The founders, whose background is in company finance, debt restructuring and personal banking, collectively personal one-third of the corporate.
Sebastio supervises retail, finance and an in-house crew of three designers for product consistency, because the model was first impressed by his personal and his father’s wardrobe. Casati is extra centered on advertising, communication, operations and logistics.
After Italy, France and the U.S. are “essentially the most receptive” markets, mentioned Sebastio. After the NoLIta retailer, the unit on Madison Avenue, which carries Velasca’s whole product vary and opened final December, “is already acting at break-even,” mentioned Sebastio, underscoring the excessive common ticket of between $8,000 and $10,000 and “unimaginable buying energy” of that clientele, “which is discerning however open to recommendation. They purchase loads for occasions, like for the night earlier than a marriage, for instance.”
He acknowledged the “turbulence” hitting malls within the U.S., however Velasca is sticking to its “step-by-step” technique and is eyeing additional growth in North America and Canada. The Center East and Northern Europe are additionally areas with potential for Velasca.
Whereas footwear proceed to account for 70 p.c of gross sales, the final 10 shops opened have been carrying whole seems to be and Sebastio mentioned he has seen regular development within the ladies’s class. Working example, Velasca transformed a retailer in Paris in Saint-Germain-des-Prés right into a womenswear boutique. A males’s retailer is positioned within the La Madeleine space.
Given the product growth, the brand new shops have gotten bigger. “We began with the idea of bottega [workshop] so the dimensions spanned between 324 and 648 sq. ft, however now we eye areas ranging between 1,000 to 1,500 sq. ft,” Sebastio mentioned.
Born as a model with the mission of connecting Italian artisans with international shoppers, merchandise are all made in Italy, particularly footwear in Montegranaro, within the Marche area, a shoe manufacturing hub. Likewise, clothes are produced in a area specialised in every class, equivalent to knits in Emilia, shirts in Apulia, jackets and outerwear in Veneto, and pants in Campania. Velasca works with main producers, using cashmere from Filati Biagioli Modesto and materials from Thomas Mason for its shirts. Sebastio mentioned that belts, wallets and weekend luggage have additionally been promoting nicely.
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