- 1. MADE IN ITALY Textile / Clothing / Fashion Chain Area Centro
Studi September 2005
2. THE ITALIAN TEXTILE AND CLOTHING INDUSTRY The Italian textile
and clothing industry is unique, lively, innovative, and leader in
the world. Its innovation ability representsits main and most
lasting competitive advantage. The mission of the Italian fashion
system lies in offering original, and very distinctive products,
which meanwhile answer to consumers taste and meet his needs. This
also implies a continuous improvement in technical performances of
fibres, yarns, fabrics, and finishing. The success of the whole
chain - from the first processes on fibres to fabrics, finishing
operations, and final products for the market - is favoured by the
interaction of a sophisticated manufacturing network, where the
strength of each element is at the same time a condition and a
function of the vitality of the whole system. This dynamic
combination of productive, creative, and managing activities
involves about 67,500 industrial companies with large, medium, and
even very small scale operations. This unique mix still turns out
to be the main point of strength of Italian T/C industry, whose
about540,000 employeescontribute to roughly 10% of the
manufacturing sectors added value. The strong export trend of the
T/C industry is shown by the turnover share totalized abroad,
amounting to 62% of total sales. The significantflow of exports
ensures a foreign trade surplus of about 12 billion Euros, which
compensate, to a large extent, the countrys deficit in energy and
agriculture. Besides the value which can be measured in figures,
Italian fashion, strongly founded on T/C, has enormously
contributed to the definition of the ideas of Italian good taste
and life quality, with positive effects onItalian products all over
the world. 3. MADE IN ITALY FASHIONFIGURESIN2004 4. THE
ITALIANTEXTILE/CLOTHING (T/C) SECTOR IN2004(in current millions of
Euros) 5. THE WEIGHT OFT/C ON THE ITALIAN MANUFACTURING SCENARY IN
2004 6. ITALYSWEIGHTONTHEWHOLEEUROPEAN
TEXTILE/CLOTHINGSCENARYIN2004 7. ANINDUSTRYWHERELARGEANDSMALL
COMPANIESCOEXISTSUCCESSFULLY The international success ofItalian
T/C has been favoured by the co-existence, on an equal status and
importance basis, of large companies and SMEs. The innovation
ability as well asthe attention to the quality of materials and
processes characterize large concerns, whose brand names can be
found in the shops allover the planet. Medium-sized enterprises are
often world leaders in particular market niches, while small
companies are specialized and excel in one or more specific
production stages. The whole chain is made of about 67,500
enterprises, of which roughly 90% with less than 15 employees. 8.
ENTERPRISES, EMPLOYEES AND TURNOVER IN THE ITALIANTEXTILE/CLOTHING
SECTOR (2004) (*) 9. The T/C SectorsForeign Trade 10. THE
ITALIANT/CSECTORSFOREIGNTRADEThe Italian T/C industry is strongly
export-oriented: actually, more than 62% of the total turnover is
achieved thanks to foreign markets. The figure of 26.6 billion
Euros in foreign sales totalized last year represents 10% of the
whole Italian manufacturing industrys export value.In 2004 net
export reached 11.7 billion Euros, i.e. 31% of the whole
manufacturing industrystrade surplus. Other fashion related
products (such as shoes, goldsmithery, leather products, cosmetics
and glasses) accounted for a further 10 billion Euros surplus.
Thats to saythat theOil of Italy can roughly completely compensate
for the countrys deficit in energy, food and agriculture. In 2004,
the flows of Italian TC products towards European Union markets (15
countries) raised by 1.4%, while those towards the 10 new members
decreased by 13%. Outside EU25 (which absorbed 54% of total Italian
TC foreign sales), exports to USA (third largest market for Italian
fashion system)recorded a drop of 2.6%, Japan lost 8.5%, while
Russia (tenth biggest customer) was the most dynamic market
(+11,2%). A significant increase was also recorded by exports to
Hong Kong (+5,1%).On import side, China has furthermore
consolidated its leadership position among top Italys suppliers
(+13.7%).In 2003 Italy was the third worlds exporter of textile
products (about 8% of the total amount), after China and USA,
recording a CAGR loss (1995-2003) of roughly 1%. In 2003 among the
main clothing exporters our country was placed just behind China,
however showing a CAGR drop near to 2%. 11.
FOREIGNTRADEFLOWSOFTHEITALIAN TEXTILE/CLOTHINGINDUSTRY (2004) The
composition of Italian T/Cs trade surplus in 2004 12. TRADE
PARTNERS OF THE ITALIAN T/C INDUSTRY IN 2004(in millions of Euros)
The top 10customer countries The top 10suppliercountries 13.
THEMAINWORLDSEXPORTERSOFTEXTILE PRODUCTS(1995-2003) 14.
THEMAINWORLDSEXPORTERSOFCLOTHING PRODUCTS(1995-2003) 15.
Thegeographyof the Italian T/C sector 16. THE GEOGRAPHY OF
THEITALIAN T/C SECTOR This heritage of specialization and this
network of relationship find a special form of organization in the
so-called industrial districts, the Italian contribution to
industrial organization models. Actually, the Italian fashion
industry is located into an archipelago of specialized districts:
Como for silk fabrics, Biella, Prato, and Vicenza for wool yarns
and fabrics, Castelgoffredo for womens stockings, Carpi and Treviso
for knitwear, Empoli for leatherwear, Pesaro for denim apparel,
Grumello for buttons, Brescia for socks producing machinery, and so
on. The close interactions between different companies, which in
most cases are located in specialized districts, are case studies
at the main universities and business schools all over the world as
a model of successful industrial organization. Industrial districts
are particular manufacturing structures, merging advanced technical
and organisational solutions with the craftsman tradition which
represents an importantspringboard for creativeness, allowing the
quick production of prototypes, small production lots, and a large
number of product variants. In some of these specialized districts,
the T/C industry is a fundamental element of social relations,
local culture and, of course, business practice. 17. Varese Como
Bergamo - Brescia Mantua Biella - Novara Vicenza - Treviso Padua -
Rovigo Modena - ReggioE. Teramo - Pescara Prato - Pistoia -
Florence Arezzo - Perugia Bari Lecce Naples Milan WHERE MADE IN
ITALY FASHION IS BORN 18. ITALYS MAIN T/C DISTRICTS (2004) 19.
Retail systemand chain model 20. CONSUMER - INDUSTRYCOMMUNICATION:
RETAIL The industrys attention to the consumers behaviour was
favoured in Italy by the existence of an articulated retail system,
with a significant presence of independent retailers. The need to
modernize retail outlets is leading to a rapid evolution of the
retail system towards more highly structured models with larger
sales areas. The retail system of the early 21st century requires a
stronger producer - retailer - consumer interaction, a new
technology in communication as well as a new organisation of the
T/C production cycle from the first yarn processingto the point of
sale. In this direction is moving the huge flow of investments and
reorganization projects underway in Italian companies all over the
production pipeline. Retail channels in Italy, clothing items
(2004)(% weight) Source: SitaRicerca 21. THECHAIN MODEL DESIGN
INDUSTRY RETAIL VALUECROSSESONESINGLECHAIN :
HOW TO TURNTECHNOLOGYINTO ART IN ORDERTO TRANSMITTO CONSUMERSAN
UNIQUE IMAGE 22. MADE IN ITALY FASHION SYSTEM AUTHENTICITY (Made in
Italy) ORIGINALITY (From Renaissance to XXI century) TECHNOLOGICAL
LEADERSHIP (The textile districts) EXCLUSIVENESS (Italian life
style) QUALITY/PRICE RATIO (Value for money) ORGANIZATION
EFFICIENCY (The chain model) 23. For further information : SISTEMA
MODA ITALIA Economic Studies Dept. Viale Sarca, 223 20126 Milan
Italy Ph. no. +39 02 641191 Fax no. +39 02 66103667-70
[email protected]
