Pirelli & C.

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Incorporated at the end of 2007, this company is a natural development of a licensing and brand extension project launched in the early 2000s with the aim of building BRAND EQUITY on the Pirelli brand.

In synergy with Pirelli’s communication activities, PZero S.r.l. enables value to be developed around the group’s brands through important advertising campaigns in the Italian and international media, but also thanks to the newsworthiness in the press and to the visibility guaranteed by products positioned in high-level sales points.

In 2009, which was deeply affected by a state of crisis of consumption particularly significant in the sectors of clothing and footwear, PZero S.r.l. achieved sales of Euro 5 million and negative operating income of Euro 3.8 million.

Besides the Italian market, PZero S.r.l. continued to develop several foreign markets which saw its turnover doubling overall compared with the previous year.

In June, on the occasion of the latest edition of Pitti Immagine Uomo, the leading trade fair in the sector, the new Angel product was presented with the Spring-Summer 2010 collection.

Angel is the new sneaker for men ‘with a double soul’: it features a pattern on the rubber sole which reproduces the outline of an angel, based on the sport touring motorcycle tyre Angel ST which after a thousand kilometres changes its tread pattern.

The sales campaign in relation to the Spring-Summer 2010 season, which ended in October 2009, showed very positive signs with orders up 50%. Of total orders, 40% are for foreign markets and in particular Spain, Russia, the Middle East and China.

During 2009 numerous research activities began for the development of PZero products with a highly innovative and technological content. In particular Pirelli Labs provided support to PZero both for the assessment of a number of technologies and in the search for suppliers and producers in the sector of accessories.

With a view to increasing the performance of PZero footwear in extreme weather conditions and, in particular, grip on wet or icy surfaces, work began on the research and characterisation of various materials that can be used to create soles for footwear. The data will be entered in a database that will be updated regularly.

In collaboration with Pirelli Tyre, work began on selecting compounds normally used in the tyre product with the aim of extending their application also to the products of the PZero line.

The trend in orders relating to the Spring-Summer 2010 line, the ongoing development of foreign distribution and completion of the product range, also in collaboration with Pirelli Labs, enable us to forecast further growth for PZero S.r.l. in 2010 with substantial achievement of its break-even point.