Area and Coco Song are now proceeding along their separate paths. Based in Italy, Area was previously a company that was selling eyewear under its own name and those of Coco Song and various other brands, such as La Matta and Kaos, generating less turnover than previously reported, but it ran into financial difficulties that led to an interesting refinancing scheme.
An investment fund has acquired the rights to the Area brand name and licensed it to its previous owner, Elisio Tessaro, who continues to run the same operations as before except for Coco Song.
Area is projecting sales of €8 million for 2009, 20 percent down on last year due to the loss of Coco Song, which it hopes to make up for in 2010 with La Matta and Kaos. It has joint ventures for distribution in the USA and Canada, and has a new venture in China in the pipeline to make and sell frames adapted to Oriental facial features, starting in 2010. Area has exclusive distributors in Europe for Italy, Germany, Portugal and the United Kingdom.
Coco Song is now managed by a company called Tesmo, run by a former chief executive of Area, Corrado Moro, and it is in the process of developing a new strategy based on a different target. Manufacturing will be transferred from China to Italy, with jewelry and leathergoods manufactured in Tuscany that will be on the market by 2010.
Coco Song is budgeting for total sales of €6 million in three years' time, of which eyewear should represent €2 million, with selective distribution in stores that sell both eyewear and jewelry. In Europe the total is expected to reach 800-1,000 outlets, served by 16 exclusive agents. The company is looking to set up a joint venture for the USA with a local partner.