FENDI Casa—How Can A Luxury Furniture Brand Accommodate The Energy and Ambition of Two Giants?

China’s luxury home furnishings market is witnessing the emergence of new players like FENDI Casa, backed by renowned fashion house FENDI and high-end design group Design Holding. FENDI Casa’s flagship store in Shanghai hosted its official opening ceremony on November 22. Situated at 1788 Nanjing West Road in the Jing’an District, the store covers a remarkable area of 756 square meters, showcasing the brand’s strong determination in the market.

Just a few hours before the opening ceremony, Alberto Da Passano, the CEO of FF Design, also known as the CEO of FENDI Casa, made his way to the second floor of the flagship store. He had been diligently preparing for the official launch of the third global flagship store, which is also the first in China, for quite some time. He was not alone in this endeavor, as the major shareholders of FF Design, FENDI and Design Holding, also sent their global CEOs to participate in the opening ceremony. Together, they presented the achievements and future visions of FENDI Casa to the guests and media.

The FENDI Casa Shanghai flagship store has been open for business since July of this year.

The flagship store was co-designed by FENDI’s interior architects and design team, led by the brand’s artistic director Silvia Venturini Fendi. The first floor of the store features three showrooms that exhibit key pieces from the new collection. On the second floor, you’ll find a display of additional designer works that truly capture the essence and style of FENDI in every intricate detail.

After four months of operation, the managers of FENDI Casa have gained valuable insights into the Chinese luxury home furnishings market and positive feedback from consumers, which has further reinforced their confidence in expanding into the Chinese market. During the official opening ceremony, FENDI Casa unveiled the Shanghai Edition Peekasit chair as a global debut, allowing Chinese consumers to enjoy this piece before it becomes available in other markets three months later. These strategic moves highlight FENDI Casa’s commitment to the Chinese market.

The Peekasit chair, created by Controvento Studio, draws inspiration from Fendi's iconic Peekaboo handbag. It is crafted with mocha-colored jacquard FF velvet fabric and features a soft ivory double-face leather with color-blocked stitching.

However, when discussing FENDI Casa’s perspective on the Chinese market, Alberto Da Passano maintains a pragmatic and measured approach. He remarks, “Currently, the Chinese market contributes around 6% to 8% of our sales, and we anticipate this figure to grow to 15% to 20%. Given the vastness of the Chinese market, we must take our time to identify suitable third-party partners and establish stores in the right locations. Our focus is on quality rather than quantity, ensuring that our stores align with the aesthetics and essence of FENDI.” Alberto Da Passano further explains that this conservative strategy stems from FENDI Casa’s commitment to being a luxury home furnishings brand, rather than a mass producer or distributor.

Alberto Da Passano, the current head of FENDI Casa, brings with him extensive experience from his years at FENDI. Before leading FENDI Casa, he served as the President of FENDI for Europe and the Middle East. Since January 2012, he has also been responsible for the licensing and collaboration business of FENDI’s home line. This experience has provided him with a comprehensive understanding of FENDI’s philosophy, strengths, and direction, enabling him to effectively utilize FENDI’s resources to support the growth of FENDI Casa.

According to Alberto Da Passano, the distinguishing characteristic of FENDI Casa is its distinctive aesthetics and brand appeal inherited from FENDI. He stated, “FENDI Casa’s target audience consists of FENDI consumers, and our objective is to offer them a more comprehensive and enhanced experience of the ‘FENDI universe’.” To ensure a seamless connection and consistency between FENDI Casa and FENDI, Silvia Venturini Fendi oversees the creative direction of FENDI Casa.

FENDI Casa’s primary goal as it enters the Chinese market is to ensure that Chinese consumers have a thorough and accurate understanding of the brand. It is important for consumers to recognize the connection and harmony between FENDI Casa as a “sub-brand” and FENDI.

Therefore, FENDI Chairman and CEO Serge Brunschwig, at this event holds particular significance.

During the ConCall interview, Serge Brunschwig revealed that FENDI started designing home products in 1987. Anna Fendi, the founder and designer of this product line, played a significant role in its establishment. He emphasized that FENDI’s offerings go beyond fashion and focus on enabling consumers to live a stylish lifestyle.

FENDI has been offering home products for quite some time, so it’s not a new concept for them. As luxury brands continue to broaden their range of products, it makes sense for FENDI to strengthen and expand their existing home line.

Although FENDI has a rich history in home furnishings, Serge Brunschwig acknowledged that FENDI lacked the same level of professionalism as dedicated home product manufacturers. Prior to the creation of FF Design in 2021, FENDI partnered with third parties through brand licensing for their home line. However, as global living standards improve, FENDI, being a luxury fashion house, has elevated its quality standards for home products. To ensure the highest level of quality, FENDI Casa now collaborates with industry experts and entrusts professional matters to the most capable partners.

Design Holding, the world’s largest high-end design group, became the perfect partner for FENDI to reimagine its home line. In 2021, FENDI, in search of professional manufacturers and operators, joined forces with Design Holding, which was planning to expand its business. Together, they established FF Design, a dedicated company for operating FENDI Casa, with Design Holding as the majority shareholder. Design Holding’s CEO, Daniel Lalonde, described the partnership as a logical decision, stating, “FENDI is a successful luxury brand, and we are a successful high-end design group. Our strengths complement each other, making our collaboration a natural choice.”

Daniel Lalonde emphasized that Design Holding has introduced numerous renowned designers from their group to collaborate with Silvia Venturini Fendi, thereby infusing FENDI Casa with fresh inspiration and creative prowess. Moreover, Design Holding has established an exclusive factory in Italy to strengthen the production of FENDI Casa products and maintain exceptional quality. He emphasized their commitment to elevating FENDI Casa into a leading luxury brand, similar to FENDI, by investing their expertise, resources, and capabilities.

FF Design represents Design Holding’s inaugural collaboration with a luxury fashion brand. Daniel Lalonde expressed his anticipation for the partnership, aspiring to witness the “magic” unfold and potentially expand on this experience in the future. Nonetheless, he emphasized Design Holding’s collaborative principles, affirming that they will not merely serve as a licensing partner or engage in OEM manufacturing for luxury brands. They will exclusively collaborate with luxury brands that align with their own values and resonate with consumers.

Daniel Lalonde’s remarks indicate that Design Holding has set ambitious goals for this collaboration, which is promising news for consumers. This suggests a commitment to delivering high-quality products, innovative design, and excellent customer service. As Design Holding holds the majority stake and actively manages FENDI Casa, the work produced by FENDI Casa will serve as the primary validation of whether Design Holding upholds its principles and maintains its high standards.

According to Daniel Lalonde, the Chinese market currently only makes up a small portion, around 5%, of the global high-end home furnishings industry. However, China’s strong purchasing power in luxury goods already accounts for over 40% of the global market share, signifying a substantial untapped potential for luxury home furnishings consumption in China. Design Holding, as a design group with nine brands under its umbrella, has ambitious plans for the Chinese market that go beyond FENDI Casa. Nevertheless, FENDI Casa will undoubtedly play a crucial role in establishing the group’s reputation swiftly and laying a solid foundation for future expansion in the market.

Although the high-end home furnishings market presents unique challenges and has a high threshold for entry, there have been several successful examples of luxury fashion houses entering this field. Their expertise in leather products and strong brand appeal have played a significant role in their success. This trend has become even more prominent in the post-pandemic era, as consumers increasingly prioritize the quality and aesthetics of their living spaces. Launching a home line has become a strategic move for luxury brands to expand their business scope. As a result, the high-end home furnishings market has become a fiercely competitive arena, with professional design groups and luxury brands vying for dominance. In this intense competition, FENDI has demonstrated business acumen by partnering with industry leaders, showcasing their commitment to success in this market.

Serge Brunschwig, when discussing the challenges faced by the luxury industry in 2023, expressed confidence in FENDI’s ability to navigate these challenges. As someone who has experienced multiple market cycles, he remains optimistic. He said, “FENDI is doing very well. We are constantly introducing new products and expanding our store network. In China, I sees no evidence of a crisis, but rather a market filled with enthusiasm and vitality. China is, and will continue to be, the most important opportunity for FENDI. The market always have ups and downs, and it’s important for us to focus on our work and do it well.”

FENDI, which will celebrate its 100^th anniversary in 2025, has been steadily expanding its "brand universe" starting with the home line. Reliable sources suggest that FENDI plans to re-launch another product line in 2025. By partnering with experienced manufacturers and operators through brand licensing, they aim to provide consumers with products of the highest quality. While FENDI is not hesitant to pursue ambitious goals, they prioritize a measured and cautious approach.