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"Because we are 100 per cent made in Italy the market is worried about the high costs and all that," Ferragamo said, noting that his competitors had relocated part of their production outside Italy, either officially or unofficially.
"But we have a very flexible structure that means we can compete very well.
But Ferragamo, chairman of Florence-based Salvatore Ferragamo Italia, a luxury goods company founded by his father, Salvatore Ferragamo in 1928, is standing firm.
Italian luxury fashion house Ferragamo has done business the old-fashioned way for decades with the factories that make its goods - "a firm handshake and a look in the eye".
And this very Italian way of doing business will continue even amid technological change and cost pressures, according to company chairman Ferruccio Ferragamo, who visited Hong Kong late last year.
"Their problem is our problem because they are our factories," he said.
We have many factories that produce exclusively for Ferragamo.