Morellato Group Charts Bold Path to 750 Million Euro Turnover Driven by Innovation and Global Expansion
Speaking at the 30th Pambianco Fashion Summit, Massimo Carraro, chairman of Morellato Group, provided an insightful overview of the group's journey, current strengths, and ambitious future objectives. The group, which reported a substantial €723 million in revenue for the financial year ending last February, traces its origins back to a modest jewellery and watch workshop established in 1930.
Carraro highlighted pivotal moments that shaped the group's trajectory. A significant turning point emerged in the mid-1990s with the innovative concept of "jewellery to live in." This approach focused on creating beautiful, non-precious pieces perfectly suited for the evolving lifestyles of women, and subsequently, men. Another successful intuition involved integrating watches with jewellery, a first for the premium segment. Furthermore, the strategic decision to establish directly operated stores, initially physical then extending to online platforms, proved invaluable. This direct-to-consumer model facilitated the collection of crucial data and consumer insights, which in turn significantly boosted the group's performance in its wholesale operations.
Today, Morellato Group boasts an extensive and diverse brand portfolio. It owns 15 in-house brands, including well-known names like Morellato, Sector No Limits, Philip Watch, Lucien Rochat, Live Diamond, Oui&Me, La Petite Story, Chronostar, and FAVS. The group also operates the Italian retail chains Bluespirit and D’Amante, alongside international banners such as Christ (active in Germany and Austria), Brinckmann & Lange, Cleor, and Noélie. Complementing its owned brands, Morellato Group manages seven brands under licence, featuring prominent names like Karl Lagerfeld, Maserati, Chiara Ferragni, Trussardi, Esprit, Jette, and Guido Maria Kretschmer.
Carraro explained that strategic acquisitions have been a vital component of the group's expansion, despite the inherent complexities in managing such growth. The key to success has been the complete integration of the supply chain. Currently, approximately 80% of Morellato's sales are generated internationally, with all products sold worldwide being manufactured in-house, often with the flexibility to adapt to specific market requirements. While Italy remains the most crucial country for production, particularly for gold, the group has also established facilities in India for diamonds and in Thailand for sustainable silver, demonstrating a diversified global production footprint.
Another significant growth driver for Morellato Group in recent years has been its deliberate move into the realm of fine jewellery, emphasizing lasting quality, and specifically into diamonds. This strategic shift, as noted by the chairman, has directly contributed to an increase in the group's average basket value, indicating a successful uplift in premium offerings.
E-commerce has also played a substantial role in the group's success, now contributing over 20% of its total revenue. Moreover, market research reveals that approximately 80% of customers visiting Morellato's physical stores have first engaged with the brand online. This strong digital-to-physical interaction underscores that the majority of sales are effectively omnichannel, reflecting a seamless customer journey across various touchpoints.
Looking ahead, Carraro shared an optimistic outlook for the group's financial performance, projecting a turnover of around €750 million for the current financial year, coupled with an EBITDA exceeding 20%. He emphasized the group's self-reliance, noting that all acquisitions to date have been independently financed. Morellato Group is poised to sustain its growth trajectory, with additional opportunities in the European market currently in the pipeline.
Concluding his address, Carraro reflected on the group's long-term vision. While Morellato remains a family business, all its constituent companies are now managed by external professionals. Acknowledging the potential limitations of the family model in the distant future, Carraro indicated openness to future strategic moves, including a potential stock-market listing or other types of transactions, to ensure continued evolution and prosperity.
