THE NATUZZI GROUP AND THE BARI-MATERA (ITALY) UPHOLSTERED FURNITURE DISTRICT: A CASE STUDY OF INTERNATIONALISATION IN A TRADITIONAL INDUSTRY GIOVANNI BELGIOJOSO CRISTINA CASTELLI SARA COLAUTTI MASSIMO FLORIO Working Paper n. 2008-42 DICEMBRE 2008 JEAN MONNET CHAIR Economics of European Integration DIPARTIMENTO DI SCIENZE ECONOMICHE AZIENDALI E STATISTICHE Via Conservatorio 7 20122 Milano tel. ++39 02 503 21501 (21522) - fax ++39 02 503 21450 (21505) http://www.economia.unimi.it E Mail:
[email protected] Seventh Milan European Economy Workshop, 13-14 giugno 2008 Pubblicazione depositata ai sensi della L. 106/15.4.2004 e del DPR 252/3.5.2006 THE NATUZZI GROUP AND THE BARI-MATERA (ITALY) UPHOLSTERED FURNITURE DISTRICT: A CASE STUDY OF INTERNATIONALISATION IN A TRADITIONAL INDUSTRY Giovanni Belgiojoso*, Cristina Castelli**, Sara Colautti*, Massimo Florio*** * CSIL – Centre for Industrial Studies (Milano) ** ICE (Roma) *** University of Milan and CSIL This version 18 June 2008 Abstract The case-study focuses on the strategies adopted by the Natuzzi Group, world leader of the upholstered furniture sector, located in the Bari-Matera district (Southern Italy), to face increasing global competition and on their effects. In particular we consider the modes and determinants of productive internationalisation, carried out since 2000 by Natuzzi in China, Brazil and Romania to produce middle-low end products. By improving the competitiveness of the price-sensitive segment, the strategy contributed to the successful expansion of the Group until 2002. However, high range products, manufactured in Italy, record decreasing sales especially on the US market, despite the company’s efforts in R&D and marketing and its investments in information technology.