Stefano Canali, President and CEO of Canali talks about new ambitions in the American market

At the end of September, the Italian luxury brand reopened its flagship store on Rodeo Drive in Beverly Hills. Spanning over two floors, the double height of the ground floor offers an open space with expansive windows complete with a private VIP area and authentic Italian-style bar, leading to the second floor which houses the tailoring atelier. This was an opportunity to talk to Stefano Canali, President and CEO of the Canali brand, about the brand’s ambitions on the American market and, more broadly, on the new international markets. 

FashionNetwork : You have just reopened your flagship store on Rodeo Drive. What does this event mean to you?

Stefano Canali : I’m very happy and proud of it. It’s a very important reopening for us. Canali has been present in Beverly Hills since 2007. So we are not the new kids on the block. It took us 12 months to fully renovate the store. This step is important as the United States is our largest market since more than 40 years. We first entranced the market at the end of 1970’s. Whatever we do in the United States does have a special flavour for us. The result is above our expectations. 

FNW : This store was designed as a “lifestyle store concept”. Can you explain this new vision? 

S.C. : This concept store is part of a new vision and strategy to revamp the brand, which was launched before the 2020 pandemic. One of the pillars of this strategy is the redefinition of our stores with the use of new materials, an elevation of our image, and the desire to create a place to showcase the revised collections that represent a true vision of the Italian lifestyle. This concept took expression of a Milanese house as we are from Milano. We wanted to create a very warm and cosy environment, a place where customers can spend more time than expected. We have a VIP space where you can have a drink, where you can have a laid-back attitude, where you can have a quality time. All this new services are important for our customers today.

FNW : You recently opened a restaurant in Hong Kong. Does this support your lifestyle strategy?

S.C. : Nowadays, luxury is very much about experience. The opening of the Locanda Canali restaurant in Hong Kong is an extension of our brand. It is located next to our refurbished store. Canali’s colours, materials, and philosophy are reflected in the kitchen, where dishes are perfectly executed, never complicated, with a touch of creativity and always made with high-quality ingredients. 

FNW : The American market is your first market. In 2020, it was representing 40% of your brand’s sales. What is the situation today ?

S.C: The US market currently accounts for 40 to 45% of our sales. And we still see real growth potential for us there. Despite what we may have read in the newspapers in recent months, it is a very wealthy market with very knowledgeable customers. It is now a trusted brand for Americans. I am extremely positive about our future.

FNW: How the refinement of Italian style align with Californian culture?

S.C. : California is probably closer to Europe in terms of values than other American states. Beyond that, Canali is an authentic brand. We don’t try to adapt, but rather to deliver a very true and incredible message. Doing our best and staying authentic.

FNW : Do you have any other plans to open stores in the United States?

S.C : I would keep these details for the next interview. But we do, of course, have many projects in the pipeline. We will continue to invest in the development of new stores, in wholesale distribution, in brand visibility, in organising events, and above all in the evolution of the lifestyle spirit infused in our collections. It takes a long, long effort to become a consistently successful brand.

FNW : What does wholesale mean to you today ?

S.C. : Overall, wholesale accounts for about 70% of our sales. In some states, wholesale distribution remains predominant for well-known reasons. The US has always had a strong wholesale network. Some department stores have been around for over 50 years. China is a different market with no wholesale culture. Brands that want to strengthen their presence in the Chinese market must therefore open stores.

FNW : You just opened a store in Seoul. What is your strategy for the Korean market and, more generally, the Asian market?

S.C. : We had a partnership with South Korea, but it ended. We recently found a partner who loves our brand, and we are planning major expansion in that country. We have just opened our third store and we are going to grow in the long term in a market that is very rich and sophisticated and is now crucial for all fashion houses. Today, the Asian market accounts for around 20% of our revenue, with China as our largest market. In China, half of our stores are company-owned. Despite the challenges in the market, we believe that the Chinese market is a strategic market for us. We are therefore continuing to invest heavily there.

FNW : You have just chosen Stefanos Tsitsipas as your brand ambassador. Why did you make this choice?

S.C. : We had mutual friends with Stefano. Stefano is a wonderful person and a great player who will soon be back in the Top 10. We had a conversation and identified shared values that led us to this partnership with him. He is the perfect ambassador. We also signed with the Inter Milan soccer team in July 2024. We are now the supplier of formalwear and off-field outfits for the players and management team. The values of sport are values we share. 

FNW : Does that mean new sports collections are on the way?

S.C: Yes, but not technical collections. We want to stay true to our heritage and the idea of lifestyle and effortless style without getting into the performance aspect. 

FNW : Does the arrival of the Olympic Games in Italy next winter and in Los Angeles in 2028 encourage you to invest more in these markets?

S.C : In reality, the Olympic Games attract people from all over the world, but they don’t really have a direct impact on luxury brands. Of course, these events share wonderful values, but ultimately, the connections are not obvious. 

FNW : Is the suit Canali’s best seller?

S.C : Yes, but suits have evolved. Today, we talk more about the shape. The way a suit is made today has nothing to do with how it was made even five years ago. The way a jacket is constructed today has changed radically, with a deconstructed approach, delicate stitching, raw materials, etc.