Franchi Blasts Fashion Industry Chaos, Reclaims Control, and Drives Brand at Lightning Speed

Elisabetta Franchi, the influential boss and designer behind the eponymous Italian ready-to-wear label, Elisabetta Franchi, owned by Betty Blue Spa, recently shared her candid insights into the fashion industry at the 30th Pambianco Fashion Summit in Milan. She expressed significant concern over the current state of affairs, noting, "There’s so much confusion in the fashion world today." Franchi pointed to a rapid turnover of creative directors, likened to "popcorn hopping about," which she believes puts brand identity at severe risk. This instability, she argued, leaves customers bewildered, unsure of what they are purchasing when they enter a store. She also critically observed that many CEOs, often from finance backgrounds, lack fundamental product knowledge, having "no clue what a button or a sewing machine is," focusing solely on data.

The Bologna-based businesswoman has recently reaffirmed her command over her label, taking back full control after the departure of CEO Gabriele Maggio and the end of her partnership with Marco Bizzarri, who had previously acquired a stake in the company. Reflecting on her collaboration with Bizzarri, she stated, "Marco and I are like twins separated at birth. We've always had a very similar way of thinking." However, she explained that "the Betty Blue machine was starting to slow down" and Bizzarri’s working style became incompatible with her need for rapid responsiveness. Franchi emphasized her commitment to speed, declaring, "I took back full control to drive the company at a thousand miles per hour. Speed is my strength."

Discussing the company's financial health, Elisabetta Franchi revealed impressive figures for fiscal 2024, with revenue reaching €171 million and an EBITDA of €40 million. However, she downplayed revenue as the ultimate metric, stating, "Revenue is not the key. I’m not competing with anyone. I try to work properly, with an old-fashioned approach." For Franchi, a healthy company is one that is liquid and self-sufficient, highlighting that over the last decade, her company has doubled its revenue, always self-financing "without bank loans." She firmly asserted that "EBITDA is the metric to watch; if it’s low, I’ve done badly."

Elisabetta Franchi’s business model is largely centered on ready-to-wear, which accounts for a significant 90% of her sales. The brand maintains a disciplined approach to product licenses, only extending to childrenswear, and is now strategically focusing on accessories as key growth drivers for the future. Franchi prides herself on the consistency of her brand and its powerful storytelling, ensuring that "women who come into my stores always enjoy the same experience." She also noted a deliberate decision to maintain price stability, distinguishing her brand from others that increased prices due to growth plateaus, attributing her ability to do so to "our strategic positioning."

In terms of retail expansion, the brand has made significant strides, opening its first US store in Miami in 2025, with Houston slated for February 2026. Franchi expressed optimism about the US market, describing it as "very rewarding," but stressed the importance of a measured and sensible approach. South America is also firmly within her sights for future development. Digitally, e-tail contributes a healthy 14% to her revenue, notably selling not just "t-shirts online, but jackets and shirts too," showcasing the breadth of their online offering.

Looking ahead, Elisabetta Franchi harbors a clear vision for her company’s evolution and her own future role. While she intends to work "to the very last," she envisions "a company that can do without me." She shared a personal aspiration for five years down the line, stating, "In five years I see myself far away, maybe on my own." Recognizing the relentless pace of the fashion industry, which she says "makes you question yourself every six months," Franchi concluded by attributing her three decades of success to her strong team: "I’m lucky to have a winning team, otherwise I wouldn’t still be here after 30 years."