New Technologies and Techniques Restoring Italy’S National Treasures Fighting the Fakers Photo by Giuliano Berarducci Photo By
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WWDMADEINITALY SECTION II Strong Ties Italian brands are taking aggressive steps to keep the factories and artisan studios humming all along the production pipeline. PLUS NEW TECHNOLOGIES AND TECHNIQUES RESTORING ITALY’S NATIONAL TREASURES FIGHTING THE FAKERS PHOTO BY GIULIANO BERARDUCCI PHOTO BY 4 WWD FRIDAY, FEBRUARY 21 , 2014 SECTION II WWD.COM WWD MADE IN ITALY Who visited Milan in 2013? Visiting Milan Here’s a breakdown: Fast Facts By Nationalities TOURISTS: 4.5 MILLION Up 3.9 percent from 2012 RUSSIA: 114,188 FRANCE: 87,314 CHINA: 83,766 UK: 74,992 GERMANY: 84,520 GERMANY: UNITED STATES: 86,399 UNITED STATES: JAPAN: 74,778 By Gender By Age Traveling as Male Female 31 to 45 years Singles 19 to 30 years other Families Groups SOURCE: CORRIERE DELLA SERA Number of people around the world who spend 100,000 euros ($137,000) each on luxury 150,000 products and services annually. Milan’s Galleria Vittorio Emanuele II. SOURCE: BAIN & CO. AND AND IL SOLE 24 ORE PHOTO BY SAKIS LALASPHOTO BY beauty, electronic goods, automotive label and scored fifth in the overall Fashion And Luxury Ranking and fashion. ranking behind France, Germany and Made in USA ranked at the top Japan, second, third and fourth, re- Which is the most influential “Made USA is the most respected prov- in categories of personal care and spectively. In” nation of the world at the cash enance of production, with consum- beauty and fashion, with consumers Not surprisingly, Made in Italy register? ers influenced by its labeling as a believing the Made In USA label to be scored second in both fashion and food According to a study by purchase driver when graded against better than products in those catego- and drink categories, and third in the FutureBrand, which canvassed 1,000 other nations in a number of sectors, ries manufactured by other countries. luxury category, behind number-one global consumers in 2014, Made in including food, personal care and Made in Italy remains a valued Switzerland and number-two France. FINAL RANK FOOD AND DRINK PERSONAL CARE AUTOMOTIVE ELECTRONICS FASHION LUXURY & BEAUTY 1 USA France USA Germany Japan USA Switzerland 2 France Italy France Japan USA Italy France 3 Germany Spain Switzerland USA Germany France Italy 4 Japan USA U.K. Italy South Korea U.K. U.K. 5 Italy Japan Germany U.K. China Japan USA 6 U.K. Germany Japan France Sweden Sweden Japan 7 Switzerland U.K. Italy Sweden Finland Spain Germany 8 Sweden Switzerland Australia South Korea Canada Germany Belgium 9 China Turkey Sweden China Taiwan Turkey Sweden 10 South Korea Belgium Thailand India Italy China Spain 6 WWD FRIDAY, FEBRUARY 21, 2014 SECTION II WWD.COM WWD MADE IN ITALY Propping Up the Pipeline If the smaller cogs in Italy’s production wheel are not maintained, the entire system faces a dire fate. By Luisa Zargani PIPELINE. pating in the success of the brand,” The term, usually associated with oil Brioni has sometimes bought raw Norsa remarked. “We have relation- or water transportation, might sound materials to help suppliers in dire ships that last as long as 40 years, and remote when it comes to the luxury de- straits that could not provide cash we are very proud of the solidity of our signs craved by fashion consumers. in advance to secure the fabrics. pipeline, all maintained in Italy.” Yet — the suppliers’ pipeline, en- Fendi also relies on skilled suppli- compassing the hundreds of factories ers that have been working with the and small and mid-sized suppliers Rome-based company for more than throughout Italy working with fashion 40 years, said ceo Pietro Beccari. As brands, is essential to the survival of the brand continues to grow, Fendi is the Made in Italy label. “also integrating small ateliers and From raw material to finished prod- their know-how for continuity,” such as uct, countless hands weave, draw, cut, a maroquinerie (leather specialist) in stitch, dye, wash, iron, fold, check, Porto San Giorgio in the Marche region. package, ship and service looks for cus- Considering himself a custodian of the tomers around the world. brand, Beccari said it was “a duty to As the country continues to be pass on the company in the best possi- weighed down by economic and po- ble way for those who will come next.” litical instability — the latest being the Tod’s chairman and chief executive ascension of the young pro-business officer Diego Della Valle has long been Florentine mayor Matteo Renzi to be- vocal about supporting Italy and its web come the next prime minister, repre- of producers, urging his peers to give senting the third new government in a back. One of the first entrepreneurs to year — high costs of energy and labor, build a kindergarten within his com- PHOTO BY SANDRO MICHAHELLES PHOTO BY unemployment and a credit crunch, a pany, he has donated a school, helped complicated, byzantine bureaucracy petitive interest rates. Gucci’s supplier port the pipeline’s small companies employees with bonuses, and last year and a punitive fiscal system, Italy’s evaluations are factored into decisions. precisely because they are small. revealed the donation of 1 percent of pipeline is at risk. International and Also, last year, Renzo Rosso, owner “Bankers say there is too much paper- profits to activities in the Marche. Italian fashion entrepreneurs real- of OTB, which controls firms including work for too little money, it’s too much “Ours is a simple logic of solidarity ize steps need to be taken to keep this Staff International and Diesel, present- hassle, and they don’t want to deal with that our group has always brought for- pipeline alive and functioning, to en- ed a new initiative called CASH, which it. For each operation in a bank, they ex- ward. We believe that for a two-way re- sure the industry’s survival. stands for Credito Agevolato [facilitated pect more than 20 signatures from you. lationship of respect, individuals that “We have always leveraged and be- credit] Suppliers Help, to support a Who reads them? What are they for?” he work with us at all levels should work lieved in the production variables, at group of small and mid-sized Italian lamented. “Micro-credit does not work in in the best possible way in a dignified a time when they were not seen as rel- companies. The entrepreneur signed an Italy, they don’t even take you into consid- location and with all the possible sup- evant as the name of the brand or mar- agreement with Ifitalia, of BNP Paribas eration if you are small.” port by the company,” said Della Valle. keting, for example,” said Franco Pené, Group, that allows Staff International The Veneto-based Staff International “We also believe that it is important chairman of Gibò, which produces col- suppliers easier and speedier access produces collections for brands includ- for companies to help the country in a lections for brands including Jean Paul to credit, for a total value of 50 mil- ing Maison Martin Margiela, Viktor & complicated moment. For this reason Gaultier, Roberto Cavalli, Rochas and lion euros, or $68.7 million at current Rolf, Dsquared2, Vivienne Westwood, we have earmarked a part of our prof- Michael Kors. “Production has increas- exchange, at interest rates in line with Marc Jacobs and Just Cavalli. its to support people that need it more, ingly become an asset brands cannot those provided to OTB. In 2009, Gucci inked a deal with while respecting the institutions.” overlook in a country where people Staff obtains the line of credit and local associations and unions to en- Della Valle is equally outspoken used to believe there were never going makes it available to suppliers of the hance and promote the pipeline. It was about the absence of political strategies to be manufacturing problems. Instead, entire pipeline, from those that pro- a gesture of patronage, and made sense in the country. “It’s a very long story — those that were not positioned in the vide raw materials, fabrics and acces- for economic and social sustainability. a book should be written about it — but high-end range have been hurt.” sories to those providing production or Addressing the latter, Francesco we could say that for too many years, Last year, Gucci partnered with end products, and factories. The credit Pesci, ceo of luxury men’s wear brand we have been managed by incompetent Banca CR Firenze, part of the Intesa is handed out on the basis of a Staff Brioni, believes help should be directed people, without the necessary vision to Sanpaolo Group, to offer companies International evaluation system. to those suppliers “that operate abiding project Italy in a competitive European that are part of the Italian luxury firm’s “This means that our subcontrac- by the rules of safety and total transpar- scenario and especially without ethical finished leather goods supply chain tors have a high standard of quality. It’s ency. It’s not only about a product — and moral values to guide our country. — a network of more than 600 firms a fantastic project, and our relation- consumers today are very sensitive to Naturally, there are also exceptions; — easier access to credit from banks. ship with them becomes tighter,” said ecological and social sustainability.” unfortunately there are few.” The bank and Gucci share information Rosso, revealing that he is developing a While conceding profit is a neces- Della Valle concluded by praising to support suppliers and subsuppliers similar project, “but expanded.” sity for any business, Pesci believes the any initiatives that support small and providing customized benefits and com- Rosso said banks often do not sup- relationship with any supplier must mid-sized Made in Italy firms.