Canali accelerates its international expansion by developing its product range and image

The 90 year old label Canali is in good shape and continuing its international expansion. It is one of the rare luxury menswear labels, 100% made in Italy, to have remained independent and in the hands of its founders, surviving the Covid crisis unscathed. A major focus on its collections and image in recent years has enabled it to renew and broaden its customer base. This evolution is particularly visible in its new flagship in Milan, which has just been unveiled.

Located in via Verri, in the Luxury Quadrilateral, the 580-square-metre store, spread over two levels, has been completely restructured, in particular creating a new lounge bar area with a garden, accessible to all customers. The layout is inspired by a new shop concept developed by Milan-based architecture company Park Associati and was first applied to the New York store in 2022. The idea is to recreate a convivial atmosphere, a little like the Milanese salons, by offering a very upmarket shopping experience.

“This boutique is the ideal expression of our strategy to elevate the brand, which is also reflected in our website, merchandising and product range,” explains Managing Director Stefano Canali, representing the third generation of the founding family. He has been with the company for 26 years, and in 2008 took over the reins of the historic brand founded in 1934 in Brianza, north of Milan. “We’ve developed the brand, but without turning it upside down. Reinventing your own house is far from easy,” he says. The house was originally known for its rather formal men’s collections, and had made its specialisation a strength. As the market evolved, it had to completely rethink its offering.

“Two years ago, we changed the visual identity, the marketing strategy, the shop concept and the offering. We worked with a new design team to review the structure of the collections, which are now more focused. The jacket, for example, which is our best-seller, is designed to adapt to different styles, and can be worn with a classic outfit as well as jeans and a polo shirt. All the pieces can be easily combined with each other. At the same time, the very high level of quality in the construction and materials has been maintained,” says the CEO.

The result is a more contemporary, youthful style that has been refreshed, with a softer, more relaxed elegance. The image has evolved, but the brand continues to be recognised for its name and expertise. The construction of a jacket, for example, requires 200 different passes, and many pieces are specially finished. Since its creation, Canali has managed to keep the entire manufacturing process in Italy. The company has five sites in Lombardy, Marche and Abruzzo. It employs 1,400 people worldwide, including 1,100 in Italy and 800 dedicated to production. “We produce 70% of the collection in-house, with the remainder supplied by independent Italian manufacturers,” explains the CEO.

It’s a strategy that’s paying off, as Canali’s sales are rising steadily. In 2023, the brand achieved sales of 207 million euros, 90% of which was generated internationally, with an increase of 10%. For 2024, it is once again banking on 10% growth. The United States is its biggest market, accounting for half of total sales, followed by Europe and Italy (30%) and Asia-Pacific (20%).

In particular, the sales network has expanded, with the inauguration of the first Café Canali in November. With a street format in Beijing, China, it is attracting a new audience. The brand currently has 190 shops worldwide, including 40 of its own, and is distributed through more than 1,000 multi-brand retailers in over 100 countries.

In Paris, the brand has repositioned itself in two more prestigious locations, at 40 avenue Georges V and 34 rue Saint-Honoré. It has also just opened a shop in Mumbai, India, and will be inaugurating another in New Delhi in September. Also on the agenda are an opening in Wuhan, China, and a total renovation of the Beverly Hills shop in the USA.