In the picturesque town of Caivano, province of Naples, four brothers founded a company manufacturing leather gloves made according to the tradition of the area in 1986. Nine years later, Domenico and Enzo Menniti and Paolo and Massimo Montefusco decided to adapt to the times diversifying its offer. Under the name Harmont
Through a mix of family heritage, creative innovation and commitment to quality, this small business has evolved to become a global reference in casual style for the whole family, with a presence in 48 countries in Europe, Asia-Pacific and America across of 81 single-brand stores, 469 multi-brand partners and 75 corners and shop-in-shops in department stores. Its latest flagship store has opened its doors at number 14 Serrano Street in Madrid, and its CEO and creative director, Paolo Montefusco, visited the capital to celebrate.
Is this opening part of a larger expansion plan or does it simply respond to the fact that Spain is the second most important market for the firm?
Both. Our company is already international and opening in Madrid is part of that internationalization process. Our development will continue here and in the rest of the world, but we pay special attention to this market because it has very great potential. We were already present here with El Corte Inglés and partners with qualified multi-brand points of sale. Our retail project begins with this flagship store in a historic building on a major street. We will continue to develop in this market.
Are the Italian and Spanish markets similar?
Our reference market is the Italian market, where we have a very important penetration. Spain has a consumer very similar to ours, both in terms of culture, lifestyle and interpretation of our Mediterranean character. Appreciate our colors, our stimuli, the references with which we create the garments.
In the first quarter of 2023, the firm had a turnover of 28.1 million euros, 30% more than the previous year. In addition to numbers, what other factors are key to identifying that a company is doing well?
Customer satisfaction is very important. We do market studies and we know that the level of satisfaction with us is higher than with the competition. A brand is a winner when it satisfies a need and offers an experience to its customer, which is why we work and pay attention to understand what people value and what they don't. Instead of closing in on ourselves, we listen and try to understand. With these studies, which are very expensive, we do not want to discover how good we are, but rather find out where we can improve to adapt the experience to customer demands.
That experience factor is easier to control in a point of sale like this. When it is sold online, how do you try to reproduce it?
Of course they are two very different moments. To respond to the demand of the digital market, which has become very important at the sales level, we have implemented a more interactive website and activated omnichannel - we offer suggestions to the client with which they can then go to the physical space, for example. , to try to cover any gaps that may appear. We have also prepared our employees and connected all departments so that they are aware of the evolution of the firm. The goal is to use technology to connect everyone Harmont
Experience and culture are two ideas that are repeated a lot in the fashion industry when it comes to analyzing the relevance of a brand. To what extent does it help you that Harmont
In addition to family, we have a series of determining values. We are Neapolitans, hospitality is part of us. The welcome, the service, the kindness, knowing how to listen, wanting to be with people... we translate all of this into our collections. When things are done well they last over time. That we are still here 28 years later means that our way of interpreting life has generated reciprocity in the market.
What would you say is the biggest challenge for the firm over the next ten years?
In this moment in which we are experiencing transformation, the first challenge is to keep up, to run at the same speed as the market. Evolution from the point of view of sustainability is very important for us. The world is changing, the climate is changing. This influences our collections, but also our objectives: in 2030 we hope that between 80 and 100% of our garments will be sustainable. It is the most important challenge.
A few years ago sustainability was key for the client, but somehow that interest has been diluted. Now, for firms, more than a response to a demand, it is an individual bet. Does your desire to achieve a sustainable ideal also include customer education?
It is absolutely correct. The market has changed very obviously: before it was more attentive to aspects such as the origin of the product. Made in Italy was perceived as better than made in China. Now, globalization and the growth of China has changed that idea, it is understood that high or low quality depends on the specific product and not on its origin. Made in house, according to the standards of each firm, solves that problem. The consumer who was previously sensitized is now not so sensitive, it is true. We have begun to educate within our structure to then address the end customer, which is a little more complex. At this moment we are implementing, with some difficulty (it is not easy to work on a sustainable product that also has a certain quality), a project that puts quality and sustainability at the same level in the development of each product. We try to first create an internal culture that we then transfer to the end client. Many use the tool of sustainability to position themselves in the market. We work to turn the company into a totally sustainable organization. The next step will be to communicate it in the correct way when we are really ready. At the moment we are on a journey, we have not yet reached the goal.
Aiming for between 80 and 100% sustainable production is very ambitious.
It is a topic with which I am very sensitive. The idea is to change the paradigm: today we say that something that has certain technical features is beautiful: the color, the feel of the fabric, etc. We have to make what is sustainable beautiful. It doesn't matter that the color is not so intense, but in our heads it will be pretty because it is sustainable. Then we will have reached our destination.
In this entire process of change there is a significant investment burden, betting on sustainability is expensive and does not have immediate benefits. How do you explain to investors who only look at the numbers that for a certain period of time you have to make less profits to ensure that the firm lasts in the future?
They are convinced by saying a single phrase: He who sows, reaps. If we were conservative and maintained the status quo, we might have an advantage today, but we could suddenly disappear from the market. We try to make a balanced management, a progressive investment. It is a journey that initially comes with smaller percentage margins, but that will be compensated by future results. As a company, beyond relative value, we look at absolute value. Suffering a little more now will allow you to have motivating results in the future. Those who are not oriented towards sustainability will disappear without realizing it because the world we live in today will cease to exist.
