Nice Footwear, an Italian company specializing in sneakers, has taken over Favaro Manifattura Calzaturiera, an Italian manufacturer of luxury women’s shoes. No financial details regarding the transaction were released, but the company specified that it is acquiring only 80 percent of Favaro, the remaining 20 percent staying in the hands of Alessandro and Roberta Favaro. The siblings will continue to work at the company with their parents.
Favaro generates annual sales of about €3 million but has the potential to significantly increase its top line in the coming years, according to Nice Footwear. It anticipates that Favaro will grow annually at a double-digit rate by blending its craftsmanship with cutting-edge technology and sustainable materials.
Favaro will have access to Nice Footwear’s proprietary software for 3D design. The software has streamlined the design process and Nice Footwear claims that the time needed for decision-making on product launches has been cut by 80 percent and design costs halved. Nice Footwear spends about 2 percent of its revenues on research and development, focusing on eco-friendly products and innovative production techniques.
The two companies have already defined an investment plan to increase Favaro’s production capacity by introducing machinery equipped with 4.0 technology. Favaro will continue manufacturing luxury women’s shoes, which will be supplemented with the production of sneakers.
Nice Footwear’s CEO, Bruno Conterno, described the deal as a “starting point” for the company, which obtains an Italian manufacturing base with the acquisition. He added that the transaction also confirms Nice Footwear’s strategy of increasing its distribution channels and results as well as bostering collaborations with “premium” brands.
The company’s chief operating officer and head of products, Francesco Torresan, noted that Nice Footwear’s business plan targets the creation of fully sustainable footwear and the production of sneakers in Italy.
In the full year ended on April 30, 2021, Nice Footwear posted sales close to €20 million. Over the next three years, it is targeting annual sales of more than €25 million. The company currently produces roughly 70 percent of its shoes in China, 20 percent in Taiwan and 10 percent in Vietnam. It had been scouting the Italian clusters of the Marche and Veneto regions to find manufacturing partners to produce locally.
Favaro was founded in the 1970s. It is based in Fossò in the Italian footwear cluster of Riviera del Brenta, in the Veneto region.