Fiamp: July 21 presentation of sector data

Milan, July 21. The Italian Federation for Fashion and Personal Accessories (FIAMP) presented sector data and the 'fashion and personal accessories' commercial penetration initiative in China.

According to the Edison-FIAMP figures based on ISTAT data, in the first quarter of 2006 exports by FIAMP's four product sectors totaled 4,268 million euros, an increase of 11.8% compared to the same period 2005. The foreign trade balance was also positive and stood 2,354 million euros (+6.1%).

For FIAMP President Alessandro Biffi, 'the overall trend is positive and there has been a recovery in exports in all four sectors from leather goods (+17.7%) to eyewear (+15.4%) and footwear (+3.6%), whereas the strong increase in the jewelry sector (+25.5%) is due almost exclusively to phenomena outside the sector, in other words, to the considerable increase in the price of gold which has gone from 445 USD/ounce to 700 USD/ounce. Although the data for accessories are positive, there is still no sign of a consolidated reversal of the trend because companies have cut their margins in an attempt to at least maintain their positions on the market.'

Commenting on the data, Professor Marco Fortis, Vice-President of the Edison Foundation, who has been collaborating with FIAMP for a year on in-depth economic studies of the segment, emphasized 'the importance of the FIAMP sectors, not only in the context of the domestic economy as a whole, but also in terms of territories within Italy which create added value and social unity. From this viewpoint, it must be underscored that the FIAMP sectors are territory-concentrated multinationals. In fact the majority of FIAMP-sector production originates in local districts. 'Italy' Fortis said, 'has only a few 'national champions', but it has many 'territory champions'. ISTAT's first ten local labor systems in leather goods (including Florence, Montevarchi, Naples and Tolentino) employ almost 20-thousand people; the first ten local labor systems in leather footwear (including Civitanova Marche, Fermo, Montegranaro, Naples, Venice, Padua) employ over 56-thousand people; the first ten local labor systems in jewelry (including Arezzo, Vicenza, Bassano del Grappa and Valenza) employ almost 35-thousand people; the first ten local labor systems in eyewear (including Belluno, Agordo, Pieve di Cadore) employ over 16-thousand people. In total, the first ten local labor systems in the 4 FIAMP sectors employ 127-thousand people, more than large individual multinationals like BMW, Shell, Bayer or Pfizer and double the number of large multinational groups like Coca-Cola, Nokia, Motorola or Samsung Electronics'.

An analysis of the main export countries in 2005 shows a falloff in exports to almost all the first 5 outlet markets: USA (-6.2%), France (+0.3%), Germany (-3.5%), Switzerland (-0.3%) and United Kingdom (-14.9%), but there is a conspicuous increase to the United Arab Emirates (+35.9%), Turkey (+32.4%) and South Korea (+26.3%). For imports, China has been confirmed as the leader of the fashion and personal accessories segment with a further increase of +44.3% during the first three months of 2006.

With reference to this great Asian country, FIAMP has decided to carry out a project feasibility study for the gradual commercial penetration of Made in Italy fashion and personal accessories in China.

'The aim of our Federation' Biffi continued, 'is to re-launch the manufacturing industry in the FIAMP sectors which are still Made in Italy par excellence. For its member associations (ANCI, AIMPES, ANFAO and FEDERORAFI) and therefore for the 'fashion and personal' accessories companies, FIAMP must represent a type of laboratory for experimenting new initiatives for attacking the market. These activities will be in parallel with corporate backup and awareness-raising initiatives addressed to Italian and Community authorities for the implementation of all indispensable actions against unfair competition and the counterfeiting of Made inItaly products, for mutual agreements on international trading tariffs, and for the definitive enforcement of the Community Regulation for country of origin labeling Made in ..., approved by the EU Commission December last for 9 sectors including footwear, leatherwear, jewelry, and recently ratified by European Parliament resolution.'

Precisely in this area of initiatives for attacking the market, FIAMP presented the 'FIAMP in CHINA' operation. For some time FIAMP's four member associations (AIMPES,ANCI, ANFAO and FEDERORAFI) have been working on a shared project for fashion and personal accessories products.

'A year ago' Biffi pointed out, 'when UniCredit Banca d'Impresa presented the results of the 'Made in Italy Champions' initiative, we found some similarities with our idea. Thanks to the support of UniCredit Banca d'Impresa (Special Projects and Development of International Markets), we have therefore attempted to plan an internationalization strategy for Made in Italy accessories companies which is based on certain shared considerations: concentrate on quality medium-small enterprises, even if they do not have an internationally-recognized brand, apply leverage on the excellence of Made in Italy and transform a weak point, their size, into an element of aggregation for a new approach to international markets through a stable, shared promotional and distribution structure.Once we'd set up of the details of this commercial penetration operation, initially we concentrated on a market in New Europe, but then, because of the initiative that had already been started by the footwear association, we directed our attention to the complex Chinese market. The preliminary analyses of that market showed a very interesting potential demand for accessories. After apparel, the Chinese seem to seek the right accessory to go with it. This led to the need to prepare an entry plan for the gradual insertion of Italian accessories through a presence that would be consolidated over time and would become a reference for associate companies. We therefore authorized Jesa Consulting, an experienced Italo-Chinese consultancy company which collaborates with the UniCredit group on the Asian market.'

FIAMP's working hypothesis concerns the necessity to create a structure that will directly promote the products and maintain a target with a high image. The promotion of Italian products must be aimed at quality, innovation and service. All promotion routes will be looked at and will take into consideration distribution channels, starting with a flagship store showroom that will be the reference for similar activities in Shanghai, for example, and in other parts of China.

'It is a project' the President concluded, 'where it is not the single product like a jewel, shoes or a bag that counts; it's strength will come from unity, from the 'Italian accessories team'. There will be no soloists, therefore, but a well-organized unit under the Made in Italy protective and promotional umbrella. The totally self-financed operation is ambitious and courageous also because it is a commercialization plan that, first and foremost, fosters the production (often unbranded) of medium-small enterprises, those that are threatened on world markets by competition from Chinese products that is frequently unfair and asymmetric.'

The results of the feasibility study and operational business plan will be presented by FIAMP by October next.

Fabio Tamburini, Special Projects Manager at UniCredit Banca d'Impresa, emphasized the role of the Bank and its attention to initiatives that support the internationalization of Italian companies, and underscored that the innovative 'FIAMP in CHINA' project 'covers the four leading sectors of Made in Italy (footwear, jewelry, leatherwear and eyewear) which are united in accepting the market challenge with decision and by applying leverage on important synergies and complementarity and, therefore, with the correct critical mass that will ensure the success of the operation.'