"I cannot possibly understand how a country that did not go through a war or any other major problem could be so underdeveloped. We've got stores in Russia, in Ukraine and even in Azerbaijan and Vietnam, and are preparing to open one in India. Yet we cannot do it on the Romanian market. At least not in the short term."
This is how Davide Cerutti, Dolce & Gabbana SpA vice-president and commercial director, sees Romania, after arriving to test the market with a view to setting up shop in the country. However, the conclusion he reached is that now is not a good time to do it. Dolce & Gabbana's clothing and luxury goods business is worth $500 million a year, making clothing, footwear, perfumes and accessories.
"We certainly won't be opening our own shop. I believe a multi-brand store is the best solution for the Romanian market," David Cerutti told Ziarul Financiar. The Italian group has already embarked upon such a project, having teamed up with other luxury brands such as Gucci and Yves Saint Laurent.
"We are in talks with a Romanian entrepreneur for a multi-brand store where all three brands would be represented," said Oliver Petcu, a representative of CPP Management Consultants, which specialises in the luxury goods industry and is also the promoter of this project. He added that Gucci and Yves Saint Laurent representatives were expected in Bucharest during the second half of the month to give the green light to this proposition. If everything goes according to plan, the first store (350 sqm) will open in Bucharest some time towards the end of next year.
"The main problem of the Romanian market is cultural in nature," Cerutti explained. "The luxury goods market is underdeveloped and people haven't been brought up to prefer genuine products. I've visited several shops and one of the malls in Bucharest and saw gross Dolce & Gabbana fakes. It's good to be copied, because it means people really appreciate you. But I've never seen so many fakes as I have in Romania, even in comparison to other counties in the region. I've been to Hungary, Poland and even Russia and Ukraine, and we've opened shops in each of these countries," he continued.
A Dolce & Gabbana men's suit can cost over 1,000 euros, depending on the collection.
Another peculiarity of the Romanian luxury goods market is the phenomenon of 'weekend shopping in the West'. In other words, wealthy Romanians who can afford luxury goods prefer to go shopping in Rome, Milan or Paris, where prices are lower, on a regular basis. ionut.bonoiu@zf.ro
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