Thus, while sales of watches and jewelry with prices of above EUR5,000 plunged by as much as 50% in the 2008-2013 period, those of products with prices of between EUR100 and 600 were more solid.
“Our plan is to open at least three stores in Bucharest and one in each of the big cities of Romania under the new Swatch-Tissot concept. For 2014, we have scheduled at least two openings, both in Bucharest”.
Amato says he’s already tested the concept in Promenada of northern Bucharest. “In this shopping center we benefited from a very good position and we must seek a similar position in the other centers we go to. The new stores will target clients with average to above-average incomes as a watch costs between EUR100 and EUR600”.
The entrepreneur also says he’s considering opening a Swarovski unit outside Bucharest, but does not want to further expand under the luxury brands he holds.
Overall, Sodo Migliori group, controlled by Amato, with revenue of above EUR20 million annually, includes 25 stores. Amato also owns other businesses, such as watch wholesale and gold trading, but under other companies.
An engineer, Alessandro Amato came to Romania to stay more than 23 years ago and now is a major player in the luxury industry.
He started in business in 1992-1993, when he began importing used cars. In the same period, he participated in auctions and bought watches he then sold. In 1995, he decided to start a business in the field together with his current partner, Marian Mihart.
In the ’90s, when trade was fledgling and luxury was still a concept associated with foreign countries, Amato opened a jewelry store. Gold Italia, opened in Unirii area in 1995, preceded Cellini.
In 1998, he opened the first Cellini store, then part of Swarovski stores of Romania and set up Chronotime luxury watch wholesale and import company. His last bet is luxury fashion, where he does not plan to expand for the moment, after he opened two Paul&Shark stores and a Gucci monobrand in Bucharest.
“Paul&Shark sales were relatively constant and Gucci sales posted a slight increase,” Amato says, without providing figures on sales or number of clients.
“Overall, the group’s businesses were flat in 2013, but I expect a slight increase, of below 5%, for this year. For 2014, I bet on consumption rebound, on falling gold prices and lending resumption and these will all slightly drive up the business”.
Sodo Migliori ended 2012 with revenue of 95 million lei (EUR21.3 million). Chronotime International posted RON12.6 million (EUR2.8 million) in revenue.
While mulling expansion and planning to boost businesses, the Italian considers this year’s priority is to retain clients.
“A series of contracts with shopping centers will expire and we are now in renewal talks. We are negotiating rents and while we do not want to shut down any unit, we will do it under adverse conditions”.
(English version by Catalina Apostoiu)