The focus on Italian production was reconfirmed – to be supported through larger companies and the protection of allied activities and knowhow that only Italy maintains at very high levels – at the congress organised by Assocalzaturifici in Fermo.
The declared aim of the Congress organised by Assocalzaturifici in Fermo on 23 November 2013 was to “put the focus back on Italian production, which is a heritage that enables us to create not only quality objects, but also value, through a close and indissoluble bond with the territory and the century-old traditions that make Italian products unique in the world” declared the President of Assocalzaturifici, Cleto Sagripanti. The theme chosen for the event was “Producing shoes, producing value. The uniqueness of Italian production.” It is a very hot topic in this period for our country and a matter of ongoing debate in Europe.
Carlo Pambianco provided the insights that formed the basis of the discussion. The researcher’s report analysed the possible strategies to be adopted and the opportunities to be seized on an international scale for the footwear industry. The crucial point of his argument was the need and obligation of Italian companies to grow in size so that Italian production can remain in Italy (expression that may seem incorrect, but that will be explained further on). According to Pambianco
foreign markets have always been a great resource for the Italian footwear system. However, the geography and importance of the various “markets” has changed in the last few years. Italy has been static, if not on the decline; Europe grows slowly, it is crowded with competitors and is not very profitable; emerging markets, on the other hand, are growing quickly and are very profitable. These are the markets to focus on, those that the large fashion groups are attacking, thanks also to a massive acquisition campaign not only of Italian brands, but also of Italian production companies and chains. This trend, in addition to not being able to be contained or avoided without going against the principles of a free market, has sometimes even brought benefits, such as saving companies in crisis and consequently, jobs. A trend, however, that depletes Italian production from various different perspectives: most of the profits do not stay in the country; the strategies are not chosen in Italy, wasting managerial knowhow; in the long run, once Italian brands have been strengthened in the world, production could also be directed elsewhere (therefore, “Made In Italy” without the Italian aspect).
“What can be done?” asks Pambianco. In the short term, very little. However, in the medium to long term, companies that want to remain in the market must be prepared to build direct, strong and credible development projects, geared mainly to emerging markets.
Markets that demand quality products, strong brands, large investments in communications, opening of direct stores and joint ventures with local partners. How can these goals be achieved? By examining the current health of Italian footwear companies, continues Pambianco. “A lacklustre situation is noticed immediately in terms of turnover and profitability (EBITDA). Therefore, it is a question of internationalisation, but also of access to new forms of financing.
The options can be varied, such as an increase in the capital of a company, access to an investment fund, listing on the stock exchange, and signing of distribution agreements with foreign partners; selling of the company to those who have the resources to make it grow, bearing in mind that growth is a fundamental requirement for survival.
Cleto Sagripanti commented on the analysis put forward by Pambianco:
Leaving aside the possibility to sell one’s company, companies must engage in profound in-house changes and internal reshufflings. These actions will inevitably impact the entire sector, thus contributing to its substantial transformation. All players must work towards a common goal and collaborate actively in order to protect and promote the great heritage of Italian production
Flash declarations to capture the spirit of the conference
Andrea Santori, President of Confindustria Fermo
We live in a land where the footwear industry is fundamental: 2,500 companies, turnover of 900 million euros, exports of 80% in a province with 180 thousand inhabitants. Despite such strong numbers, production and employment are falling because of the decline in domestic consumption. Therefore, the battle for “Made In Italy” products is crucial, not only to protect creativity, but above all to ensure that the products are made in Italy, that the work is created in Italy, which in turn jump starts expenditure. More important than “Made in Italy” is Man in Italy
Paolo Mieli, journalist (moderator of the conference)
We are now experiencing the second half of the crisis where the real problem is once again political stability. We are not using the crisis to sort out and settle the accounts, a path that, however, Spain, Ireland and even Green have undertaken. This will penalise us when the crisis is finally over. An example of this is the tax wedge that has never been addressed effectively. It is a vital parameter even for only imagining the recovery. Furthermore, if public spending is not cut fairly and firmly, all the promises on taxes will never be kept. Your limit as footwear manufacturers is that you have difficulty in joining forces and collaborating with each other, while I believe you are very good at attracting young people, fundamental energies to renew tradition
Claudio Marenzi, SMI President
We must not be afraid of foreign companies purchasing our brands. The French, for example, have also done good things with Italian brands, leaving the production in Italy. We must be concerned about the fact that once the Italian brands have been strengthened, their production may be relocated. A fear that we must be aware of: if they purchase our brands, it is only because we guarantee excellence through an excellent supply chain that cannot be found anywhere else in the West. The supply chain must be preserved by making Italian products and by creating a system. We need to find a new way, different from that of the French, to unite numerous individualities and to draw the best from each of them
Roberto Luongo, General Manager of ICE
China has great potential, but at the same time it also faces many problems and difficulties. I think in the next few years, we should not only focus on the BRICs, but also on clearly defining the potential of Central Asia (Ukraine, Azerbaigian…) and countries such as Malaysia and Indonesia. I believe that the Arab countries still have a lot to offer, as does the United States which continues to be a point of reference. In terms of competition, Turkey is without a doubt the country that is working very hard to grow and establish itself
Andrea Meloni, Ambassador – DG Promozione Sistema Paese
We are aiming for a diplomacy of growth by providing businesses with a network of knowledge that brings benefits, as well as knowledge, to the countries in which we operate in order to facilitate the work of entrepreneurs. We are closing consulates in different parts of Europe and opening new ones in other countries that are more attractive to Italian trade, such as Asia or the Gulf area
