British fashion house Burberry eyes leather goods suppliers in Italy
The group says it will take about 100 leather goods specialists in-house to tighten control over suppliers and shift its brand more upmarket
Paris — Burberry is to take over one of its leather goods suppliers in Italy as the British group seeks to boost its handbag business in a drive to take its brand more upmarket. Burberry, which is seen as punching below its weight in handbags and leather accessories compared to its peers, said it would be taking a team of about 100 leather goods specialists in-house as part of the deal agreed with CF&P, one of its longstanding suppliers. It did not say how much it would pay for the deal. Luxury goods firms tend to make the largest chunk of revenues from high-margin leather accessories, and many seek where possible to cut out the middle-man, giving them more control over costs and turnaround times. CF&P, which is based in Scandicci just outside Florence, focuses on developing propotypes and works with other brands. A small part of its business will remain independent following the deal with Burberry. The acquisition comes as Burberry CE Marco Gobbetti pushes to transform the brand kn...
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