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Tuesday, December 04, 2007
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IPO News
Dec 1 2007 3:42PM
Versace aims for 40 pct accessory sales -report

MILAN, Dec 1 (Reuters) - Italian fashion designer Versace wants accessories to make up 40 percent of total sales, its chief executive told Il Sole 24 Ore newspaper, but he added that there were no plans for a second line or acquisitions.

"We are aiming to bring accessories from 30 percent to 40 percent of turnover," Giancarlo Di Risio said in an interview published in the newspaper's Saturday issue.

"Our development will be entirely internal: we are staying loyal to the high end of the market, there will not be any second lines," he added.

Accessories such as bags, scarves and belts are attractive sales for designers as they need less showcase space than clothes and do not need to be made in many different sizes.

Many of Italy's designers such as Giorgio Armani and Dolce & Gabbana have branched out into second lines to attract a younger or less affluent clientele than their leading and couture offers.

"Around 70 percent of our business today is new, it is not coming from the traditional Versace customers," Di Risio said.

"And this is not so much because we have gone into new geographic areas but because the image of the brand has attracted new clients," he added.

Versace's design head, Donatella Versace, has been moving away from the company's old image of flash and glitz to a more wearable look. Her last womenswear show in September used classic shirtdress styles and softly pleated evening gowns.

Di Risio said the company aimed to make Asia its second market after Europe and ahead of the United States, pointing out that "today China, and in future India, are growing more than other countries".

He reiterated that a stock market listing was something that could be considered in the medium to long term but was not a necessity for the design house. (Reporting by Jo Winterbottom, editing by Tony Austin) (([email protected]; +39 02 66129 442; Reuters Messaging: [email protected]))

Keywords: VERSACE/

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