Subdued, revenue at 164 million and focus on foreign expansion

In recent years, many big brands have begun to shift their focus to younger consumers, collaborating with influencers on TikTok, K-pop stars or opening up to 'gamification', with the intention of 'cultivating' the customers of the future. Not all, however, have succeeded.

Enrico Maria Sconciaforni had already identified teenage girls as a target market thirty years ago: in 1994, in Rome, he co-founded the Subdued brand with Alessandro Orsini, of which he is president. And which, in defiance of the competition from fast fashion that has literally exploded in the last three decades, continues to grow. "We have always had a very precise target," he explains, "and in recent years we have been consistent in proposing a 'clean' style of clothing for both daytime and evening wear, trying to create a community that feels it belongs to the lifestyle and clothing proposed by Subdued, without leveraging too low a price.

The strategy of not enticing the very young with price lists reduced to the bone has sheltered Subdued, which is part of the Osit group, from the wild competition of fast fashion and ultra fast fashion, which in recent decades have proposed (with brands dedicated to the very young) trendy clothes at low cost. And it had an undoubted economic return: the group closed the 2024 financial year with a total turnover of 164 million euro, up 37.2% compared to 120 million in 2023. The 2022 turnover had been just over 92 million. The group's Ebitda margin was 31.4%.

The development is mainly driven by the increase in foreign sales, which account for more than 64% of the total and are up 53% on the previous year. To drive this expansion, just over a year ago the holding company Nuo (50% owned by Exor) took over 30% of Subdued: '2024 was an exceptional year: we did incredible numbers due to both the explosion of the business in the UK and the brand in Europe. We are ready to move forward with expansion,' says Sconciaforni. Who speaks first of all about China: "In September 2024 we opened two shops in Shanghai, a market that is responding quite well, and one in Chengdu. By 2026 we will open two shops in Beijing, a shop in Guanzhou and a pop-up store in Shenzen. And then a shop in Hong Kong. We are considering markets such as Korea and Japan'.

Around 87% of Subdued's sales come from its own shops, around 100: in addition to Rome and Milan, they are located in international capitals such as Paris, London, Barcelona, Madrid and Amsterdam, Berlin (Subdued's first foreign shop was opened there in 2013), Hamburg, Stockholm, Munich, Zurich, Rome, Milan, Lyon, Oslo, Stockholm, Dublin, Ibiza, Valencia, Antwerp, Brussels and Vienna. The company is also looking with interest at the Middle East market, with Dubai at the top of the priority list, this time with a partner, and at the USA, through the launch of a dedicated e-commerce site. Other investments are directed at expanding the online channel: 'Ecommerce absorbs about 10% of sales, but we want to grow it,' the president explains.