China’s coronavirus response ‘demonstrated its evolution into a world superpower’, says Stefano Ricci CEO
The son of brand founder Niccolò Ricci praises Xi Jinping’s robust response to the crisis, shutting down the city of Wuhan and quarantining millions across Hubei, as he sits down with STYLE to talk luxury consumer trends
In the latest instalment in our On Work / On Play series with luxury CEOs, we sat down with Niccolò Ricci, CEO of Stefano Ricci, the ultra-luxury Italian label founded by his father in 1972. He tells STYLE how to cater to the world’s super-rich and deal with the coronavirus crisis in China.
Work experience
2007-present: Chief executive officer at Stefano Ricci
2003-2007: Head of corporate planning at Stefano Ricci
On work
Are you concerned about the damage from the coronavirus outbreak in China?
We are following the evolution of this crisis with great attention as it is of global concern. We appreciate the measures put into place by the Chinese government; in fact, its response has demonstrated its evolution into a world superpower in terms of outbreak prevention and treatment. Certainly, keeping our boutiques closed for weeks has created difficulties for our business, but we are committed first towards the health and safety of our employees. We don’t know when this situation will end, but we are confident that a solution will be found soon.
The brand is hugely successful in China. Are you adopting different strategies for China and other markets around the world?
We have long-standing and profound ties with China. In fact, when my father decided to open his first-ever boutique, his choice of location was Shanghai, as early as in 1993. And in more recent years, I have had the opportunity to verify, in my role as CEO, how vital this market is, and how much it has developed and consolidated towards the choice of quality products.
Chinese communities are present throughout the world, not just in China. We do not adopt a different strategy for these customers, but we have an unwavering respect for their needs. We do have some products made exclusively for China, from the design of precious buckles with a dragon motif to outerwear with special finishes. It is the details that make the difference.
What makes Stefano Ricci different from other labels?
We have the strength of consistency. We have remained faithful to our DNA: 100 per cent made-in-Italy products, the highest quality fabrics and leathers, extreme attention to detail and a 360-degree bespoke service. The market has responded positively; besides growth in the brand, this has represented growth in our reputation as well. Our opening strategy increased the number of mono-brand boutiques from 13 in 2010 to 67 at present; all are evenly distributed globally.
SR is known for being loved by the super-rich. How did you achieve that?
The credit goes to my father. By 1972, he already had the vision to create his first collection of ties for successful men. In this long journey, and as a family, we have always shared the choice to never compromise quality for quantity. We are conscious of the needs of our clientele. The fact that we never offer discounts on our products, which are also never distributed in outlets, has played an important role. For us, this is a form of respect towards the customer who comes into our boutiques to choose his wardrobe. He cannot find, a few months later, that his garments are being sold at a lower price than his original purchase. We are serious about this, and it pays off in the medium-term.
What are your views on millennial and Gen Z consumers?
Millennials are now an integral part of our clientele. They accompanied the development of our collections, showing a growing interest in our sportswear lines. We recently dedicated lines such as SR Luxury Tech and the SR Ski collection to them. These will arrive on the market with the autumn collection. We offer ways for our clients to be elegant in informal situations, or even in extreme situations, such as when they are in high mountains.
Generation Z had the possibility of coming into contact with our products through the SR Junior collection, which I have always considered the entry-level for the great customers of the future. In niche publications and online, these clients of tomorrow are often spoken of as fashion victims, choosing garments for their logos and not for their substance. I believe that when a child is lucky enough to wear a pure cashmere sweater, to dress in a tailored suit made in Super 180’s wool, he will always be able to recognise authentic quality to the touch, thanks to this form of taste education.
What are the factors that will shift the luxury industry?
There is now an awareness that a luxury item is not expressed in terms of cost but value. In the past few years, the international crisis has caused profound changes in the middle class, but not in the high-wealth segment. Our customers are aware of this and have changed their spending habits. They still love to surround themselves with beauty, from their choice of a new home to their car and to their way of dressing. However, they will be increasingly attentive to issues such as sustainability, and they will avoid purchasing items based on logos alone. They will want to know in detail about the origin of a product’s materials, and how it is processed. We have been ready for this for years; not only are our products certified, but from their design to their development and eventual display in our shop windows, each step is strictly Italian.
What are the advantages or challenges as a brand run by a family?
The advantage lies in the fact that the decisions are made over dinner at my parents’ home in perfect Italian style. My parents, who are fully involved at the top of the company, and I have a common feeling about our fundamental values. We do have our individual differences, but these often have positive outcomes. Today, more than ever, a cohesive union is created through the balanced consideration of both ideas and investments.
On play
How do you summarise your job as a CEO?
This means total commitment and dedication to the company 24 hours a day, seven days a week. Success does not come by chance but is the result of patience and constant teamwork. When I disconnect for a few hours, I put my mobile phone aside and dedicate myself to my little daughter. Her smile gives me positive energy that spurs me to try to do better.
What are the three Italian dishes you would recommend?
A ribollita that respects the best of Florentine traditions, fresh home-made tagliolini with fresh grated truffle, and home-made tiramisu.
If you have to travel to Mars and can only bring three things, what would they be?
Healthy food, a comfortable pillow – and enough fuel to come back to Italy.