Skip Nav
Olivia Palermo
Olivia Palermo's Best Dresses Are All Perfect For This 1 Occasion
Summer
All the Ways You Still Haven't Thought to Wear Your Denim Skirt
Bras
The Only 17 Pieces You'll Ever Truly Need in Your Underwear Drawer

Tod's Doesn't Take Risks, According to Diego Della Valle, But It's Paying Off

Tod's Doesn't Take Risks, According to Diego Della Valle, But It's Paying Off

>> As luxury brands are increasingly turning to manufacturing in China and technological savvy to increase profits, Tod's chairman Diego Della Valle refuses. He runs Tod's like a traditional, old-fashioned family business — instead of listening to focus groups to decide which new shoe styles should go into production, he wears the shoes, and decides after a few days if they're to his liking. And there are no computers or iPhones in his office — Della Valle makes do with an outdated Motorola cellphone.

“We don’t take risks,” says Della Valle, who has grown Tod's into a multibillion dollar company and kept the business concentrated on shoes and handbags. “We want to guarantee our customers we’re giving them the best.” While the brand has 24 stores in China, Della Valle refuses to move production there just to reduce costs, something that other Italian-based brands have done recently.

A men's crocodile loafer retails for 3,500 euros and costs 1,590 euros for Tod's to make in Italy; making it in China would reduce production costs by half, and therefore, increase the company's profitability. But Della Valle thinks it's worth the price — and the strategy is paying off. Tod's was one of the few luxury companies worldwide to increase sales and profits throughout the financial crisis: profits grew from 77 million euros in 2007 to 83 million in 2008 and 86 million in 2009.

Around The Web
Join The Conversation
Rose Byrne Derek Lam Dress at Tribeca Film Festival 2016
Naomi Watts in Derek Lam at Divergent Premiere 2016
Kate Middleton Wearing Red LK Bennett Coat 2016
Naomi Watts Diana Movie Costumes | Pictures
Tod's Spring 2014 Runway Show | Milan Fashion Week
Derek Lam Fragrance
Tod's Hires Alessandra Facchinetti as New Creative Director

POPSUGAR, the #1 independent media and technology company for women. Where more than 75 million women go for original, inspirational content that feeds their passions and interests.

From Our Partners
Latest Fashion
X