Value of being made in italy

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Value of being made in italy

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Value of being ‘ Made in Italy ‘

by Rachel Sanderson

In Palazzo Strozzi, a Renaissance palace overlooking Florence’s Arno River, Ferruccio Ferragamo, owner of luxury shoe brand Salvatore Ferragamo, is explaining why his shoes are «Made in Italy». Mr Ferragamo’s father, Salvatore, put handmade shoes on the feet of Marilyn Monroe and Sophia Loren, Lauren Bacall and Judy Garland. But many people might think that his son is living in different times, with rising Chinese and Indian manufacturing companies putting Italian companies out of business.

A decade ago, many economists, in Italy and outside, were convinced that the small and medium-sized businesses that make up a large part of the country’s economy were in decline. The Italians could not compete with rival manufacturing countries in Asia. Their productivity was too low and too costly. But the country’s exports are estimated to have grown 12.5 per cent this year, with forecasts of 8 per cent for next year’s growth.

The surge has been caused by the attraction of «Made in Italy» goods to the middle classes of rapidly growing economies, including Brazil and China. And whether it is sending furniture to Russia, textiles to Egypt, rubber and plastic products to Turkey or wine making equipment to Chile, emerging markets are proving increasingly important for Italy’s entrepreneurs.

The place where a product is made is very important for Chinese consumers. By some estimates, China is now the world’s biggest luxury market. This has allowed the industry to raise prices by 10 per cent in the past 12 months. As Mr Ferragamo says, «We cannot make enough to keep up with the demand from the Chinese. They want their shoes not just made in Italy, but often made in Florence.»

Value of being made in italy

Introduction

The concept of Made in Italy is something that builds its foundation in the collective imagination. Made in Italy is a concept that stretches across many product categories and industries. Some examples include.

The COO effect is a very important element in the value proposition of a brand. On the one hand, it allows promoting products very persuasively in foreign markets, but it also plays a very important role in domestic markets. We address COO branding in more detail in this post.

Made in Italy is a concept that is able to merge in a unique country of origin a list of attributes that spans from maintaining a strong attachment to traditions as well as being pioneering innovation.

In this post, we are going to discuss:

1. What Does Made In Italy Mean?

Technically speaking, Made in Italy relates to a specific element of the value chain: the location of production. At the same time, the value of made in Italy spills over to:

All in all, the addition of this production value translates into a 20% price markup for Italian products, sold internationally.

2. What Kind of Companies Are Associated with Made in Italy?

It has to be noted, however, that Made in Italy, despite our premises is not only a synonym of product quality but also a symbol of service excellence. Many Italian brands, such as Dolce and Gabbana, have developed an international reputation for creating new standards of excellence in customer service and retail operations.

As we came to the geographic localization of these firms we can see how production clusters are mostly located in the central regions of Italy, specifically in Tuscany, Emilia Romagna, and in the Marche.

Finally, what challenges lie ahead for Italian companies? There are many which could be mentioned, as running businesses in Italy provide many unique challenges. Some of them may entail the management of companies who are walking a path in the middle between heritage and innovation, for instance:

All in all, Made in Italy is a country of origin brand which entails great persuasion, but also a lot of responsibility towards the past (heritage) but also the future of fashion. In the following paragraph, we are also going to address the way in which Made in Italy is addressing the need for new environmental standards.

3. How the Made in Italy is Gaining an Association with Sustainable Fashion.

Sustainability has become a predominant element in the business of fashion, and Italian fashion producers have taken the challenge right on, creating a manifesto, or a general declaration of intent in the way in which the Made in Italy country of origin label needs to become a synonym of sustainable business.

In 2012 the Camera Nazionale Della Moda published a manifesto of sustainable fashion. These are its tenants:

At 440 Industries we are very concerned with the efforts that brands need to undergo to become agents of sustainable change. In this section of the website, we have a wide variety of resources for anyone interested in understanding how to become more environmentally-aware.

4. Conclusions

In this post, we defined what Made in Italy means and what are some of the most relevant features that relate to the Made in Italy philosophy. Working with Italian manufacturers is a great opportunity and sometimes a privilege, which has to be approached with both business and cultural understanding of the way in which Italian businesses operate.

In our blog, you will find more information about the fashion business and the importance of cultural understanding when crossing national borders. If you wish to expand on this topic, here a post you might be interested in: The Challenges of Negotiating Across Borders.