Italianvalue022014

INDEX

EDITORIAL ...................................................................... 7 Ferruccio Dardanello, Guido Carella COVER STORY .............................................................. 12 The leaders of Italian fashion MADE IN ITALY ............................................................ 20 Lavinia Biagiotti Cigna, Cesare Paciotti, Silvano Lattanzi, Mario Boselli, Raffaello Napoleone, Claudio Marenzi, Salvatore Mercogliano, Raffaella Carabelli, Bruno Amoroso, Stefano De Pascale, Vittorio Borelli MARKETS .................................................................... 40 Riccardo Monti, Leonardo Simonelli Santi, Giuseppe Tripoli, Bruno Carenini, Cesare Romiti

p.20

Made in Italy

INTERNATIONAL POLITICS ........................................ 48 Edward Luttwak, Carlo Maria Oliva FINANCE ........................................................................ 52 Chiristina Lagarde, Janet L. Yellen SOUTH-EAST ASIA ...................................................... 56 Economic outlook, Giovanni Salinaro, Giovanni Capannelli INDIA ............................................................................ 64 Economic outlook, Daniele Mancini

South-East Asia

TURKEY ........................................................................ 68 Economic outlook, Gianpaolo Scarante, Nicola Longo Dente, Gian Guido Folloni AGRI-FOOD INDUSTRY .............................................. 76 Mario Guidi, Domeni Zonin, Riccardo Ricci Curbastro, Pietro Migliaccio, Andrea Ferraioli

p.56

↑ Christine Lagarde, Managing Director of the International Monetary Fund

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FOCUS ON VENETO .................................................... 86 Fernando Zilio, Roberto Zuccato, Giorgio Grosso, Ettore Riello, Enrico Carraro, Marco Brazzolotto, Luciano Benetton, Marino Zorzato, Marino Finozzi, Antonello De’ Medici BUSINESS MODELS .................................................... 114 Roberto Snaidero, Monica, Gisella and Riccardo Colombo, Franco Piran Riccardo and Andrea Rota, Salvatore Pantano INNOVATION .............................................................. 128 Giuseppe Longo, Giordano Gozzi, Raimondo and Nicola Mattiuzzo, Luigi Ciarlo EXPORT .................................................................... 136 Alberto Baban and Nicola Mason, Ettore Benevenia, Matteo Oldani, Francesco Magazzeno and Gilda Faino FASHION ...................................................................... 146 Federico Ceschi, Katia Stefanuto, Cristiana Bregolin, Dino Corinna, Nicola Fiorentino

p.64

India CONSTRUCTION INDUSTRY .................................... 162 Valerio Pavan TOURISM .................................................................... 165 Renzo Iorio TOURISM AND SPORTS ............................................ 166 Giovanni Malagò, Enrico Valle PATRONAGE ................................................................ 170 Simonetta Brandolini d’Adda, Franca Coin

INTERIORS .................................................................. 156 Giovanni Pegoraro, Elena and Carmela Carrara

PORTRAITS .................................................................. 184 The new Agnelli generation

TRANSPORT .............................................................. 160 Aurelio Zamboni

WORLD EXPOS ............................................................ 188

Focus on Veneto ITALIAN VALUE

p.86

↑ John Elkann together with Sergio Marchionne, managing director of Fiat Chrysler Automobiles Group

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7

EDITORIAL FERRUCCIO DARDANELLO, PRESIDENT OF UNIONCAMERE

Italian export wins over the world For more detailed information ↑

nly exportation has been able to brighten sed the first three trimesters of 2013 with a +0.8% variation.

O

these dark years. In fact, despite the

Yet, today, little more than 200,000 operators have access to

financial crisis, the Italian flag has not

foreign markets. Moreover, if we consider that in Italy there

ceased flying on the international mar-

are over 6 million companies, it is easy to understand that the

kets. Quite the contrary. Since autumn

growth potential remains high. Taking into account just the

2008, foreign turnover of our manufactu-

manufacturing department, we have identified another

ring productions has increased more than that of France and 73,000 productive realities with the potential to jump right Germany. Meaning that Italy is not a victim of globalisation.

into international competition, but they cannot do so alone.

Rather, it has found the strength and ability to tune into It is with them in mind that we have created Worldpass, the new wavelengths, intercepting the emerging needs of the

network of actual and virtual helpdesks, allowing those com-

market, thus realigning the geography of a new “made in

panies requiring specialised assistance and initial directions

Italy” made up of creativity, technology, and respect for the

for exportation to come into contact with the Chambers of

environment - without renouncing beauty and quality.

Commerce. Together with the ministries of Economic Deve-

Thus, Italy ranks among the top five countries in the world lopment and Foreign Affairs, the Italian Trade Agency (ICE), for commercial outcome.

SACE (Insurance and foreign investment protection services),

And we continue to grow. In the first nine months of 2013

SIMEST (public partner for investments abroad) and the Ita-

alone, surplus exceeded 19,600 million euro. However, this

lian Chambers of Commerce abroad we are turning

exceeds 60,000 million if we consider the energy deficit that

exportation into a single path onto international markets.

structurally affects our country. In a short time, we have

Because, if internationalisation remains the main perspec-

conquered important territory in faraway countries. Suffice tive for development of our country, we need to sustain it. to think that a good 11.3 of the 19.6 thousand million of the In this sense, Expo 2015 will prove an unmissable opporsurplus come from outside of the EU. Moreover, while our

tunity. We are ready to make our contribution, also

exports to Europe have decreased by 2.3%, those beyond Euro- through the network of approximately two thousand pean borders have grown by 2.1%. Attracting growth in authentic Italian restaurants present in over 50 countries foreign markets is, above all, non-durable consumer goods

throughout the world and certified by the Chambers of

(+6.8%). On the other hand, the sharp fall in energy produc- Commerce “Italian hospitality” project that officially tion (-20.5%) has slowed it down.

entered the Agenda Italia 2015 to promote our country in

Nonetheless, net of energy products, Italian export has clo- the world in light of Expo 2015. \\\\\ ITALIAN VALUE

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9

EDITORIAL GUIDO CARELLA, PRESIDENT OF MANAGERITALIA

Why the world is looking for Italian managers

oday, every company is obliged to get into for- is vital in a global market where all paradigms explode

T

eign markets. And the same is starting to and where the only compass remains that of being able to apply to managers, too. It is no coincidence change direction, guided by the continually changing culthat Italian managers are particularly bril- ture and “DNA” that characterise our history. Living in a liant

and

appreciated

internationally. context so rich in stimulants favours our ability not so

Currently, there are over 10,000 living and much in adapting ourselves to the most varied situations,

working abroad, a fact that, especially recently, has been

but in using them to our advantage. \\\\\

on the up. Our association has recently interviewed 447 expatriate managers. From the survey, carried out online

by Astraricerche for Manageritalia and Kilpatrick Executive Search, a positive view emerged. I remember, in

Where Italian managers work in the world

particular, the words of one of our interviewees: “Italian managerial quality is becoming a truly exportable prod-

11%

uct.” This is because, in many respects, being Italian is an

Switzerland

added value. Many foreign businesses appreciate the ability of Italians to adapt to various cultural contexts, but, most of all, also the ability to disentangle themselves from problematic contexts. Our managers have been

10% China

51% Other countries

9%

trained while facing up to and overcoming the immense

Brazil

problems, known worldwide, of our country’s system. In

7%

addition to this, they are recognised as having a striking

France

creativity that, together with the ability to resist and over-

6%

come obstacles, often makes the difference.

Perhaps we are less competitive in programming and organisation, but this has become a false myth, one that must be discredited. What is certain is that no one can beat us in our ability to face up to sudden changes, those which the international market is slowly becoming used to. And let us not forget that our school prepares us, cul-

Switzerland 11% China 10% Brazil 9% France 7% Germany 6% Hong Kong 6% Other countries 51%

Germany

6% Hong Kong

Source: Astraricerche for Manageritalia and Kilpatrick Executive Search (on a sample group of 447 interviewees)

turally, at a high level in all humanist subjects. And this ITALIAN VALUE

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THE ITALIAN TOUCH Food Furniture Fashion Shoes Eyewear Jewelry Total

What is the secret behind the success of Italian companies?

A widespread aesthetic culture, the ability to innovate while remaining faithful to artisan traditions and to sell a lifestyle.

Basically, creating “Made in Italy” products

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M

Exports of Italian products high-end in the world

2010

2011

2012

% change 2011-2012

16,819

18,479

19,566

5.9

9,027

9,435

9,527

1.0

14,846

16,329

16,658

2.0

6,346

7,172

7,401

3.2

2,153

2,403

2,566

6.8

4,052

4,381

4,878

11.3

53,242

58,198

60,597

4.1

Source: Prometeia and ITA

(million Euro and percent change)

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ade in Italy products are distinguished by a number of values (aesthetics, creativity, quality, functionality) that identify the typically Italian way of life. And, it is thanks to these abilities that the expression “made in Italy” abroad is not merely idiomatic but has also become a true brand name, one of the most famous in the world.

The most popular Italian products abroad are among those that in Italy are known as the “4 Fs” of the made in Italy name – food, fashion, furniture and Ferrari. But there are also other sectors (footwear, mechanics, jewellery and ceramics) that are up there with foreign consumers’ favourite products globally speaking.

In the first nine months of 2013, Italian exports generated a volume of 289,500 million euro.

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Fashion 19.7% New markets**

55.5%

24.8%

Traditional markets*

Other markets

Shoes

21.2% New markets**

55.3%

21.9%

Traditional markets*

Other markets

* France, Germany, United States, United Kingdom, Switzerland, Spain, Japan, Austria, Canada, Sweden ** Russia, Romania, China, Poland, United Arab Emirates, Turkey, Tunisia, Czech Republic, Ukraine, Bulgaria, Croatia, Saudi Arabia, Hungary, Mexico, Brazil, Slovakia, Morocco, India, Libya

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Source: Prometeia and ITA

Principal destination of Italian products high-end

There are around 191,000 Italian companies that operate directly in foreign markets, 4.3% of the total. SMEs (those with less than 250 employees) represent 53.8% of these exporters, large companies 45.7%. This gives us an idea of how the most famous “made in Italy” names (Armani, Ferrari, Scavolini, Tod’s, Bulgari, Ferrero and many more) are just a drop in the ocean of those products, created by thousands of Italian SMEs, that are sold abroad.

According to SACE analysts, the countries that will generate the most value for Italian exports in the next three years are China (average annual growth of Italian exports is 12.3%), Switzerland (+11.5%), Brazil (+11.3%), the United States (+11.2%), Romania (+10.6%), Turkey (+10.2%), Russia (+9.4%), Poland (+8.4%), France (+7%) and Germany (+6.6%). But let us take a closer look at some of the most representative sectors of the “Made in Italy” brand.

Fashion Textiles-clothing is the third-ranking manufacturing sector, counting almost 450,000 employees and more than 50,000 companies active in the territory: Italy ranks third among world textile-clothing exporters after China and Germany. The sector generates a surplus of the commercial balance statement second only to that of mechanics. The footweFEBRUARY 2014

ar sector in the first six months of 2013 exported 98.2 million pairs of shoes, for a turnover of 3,300 million euro.

Jewellery In the first nine months of 2013, Italian jewellery exports registered an increase of 6.9% compared to 2012. Jewellery is exported mainly to the Arab Emirates and Switzerland, which together take almost 40% of the jewellery that crosses the national borders, followed by France with 12.9%, while the most growth has been registered by Hong Kong and Turkey.

Food industry Exports of Italian food products, led by wine, in 2013 reached 33,000 million euro (+6% compared with 2012). Most exports are towards the EU (+5%), but the “Made in Italy” name has also grown in the United States (+6%), and in the Asian (+8%) and African markets (+12%). Wine was confirmed as the most exported product (5,100 million euro), ahead of fresh fruit and vegetables (4,500 million), pasta (2,200 million) and oil (1,300 million).

Mechanics For years, Italy has been a leader in the mechanical industry. It is suffice to think that in 2011 this sector contributed 44,400 million euro to the 56,700 million of the foreign commercial surplus of the Italian manufacturing sector. An important segment of Italian mechanics is textile machinery which in 2012 exported 83% of its total production to 130 countries.

Ceramics In 2013, the Italian industry of tiles and ceramic coverings registered an increase of exports of 3.1% compared to 2012: the NAFTA area (Canada, Mexico and the United States) registered +12.5%, the Gulf +11.7%, the Far East +11.9% while Eastern Europe registered an increase of 4.5%. \\\\\

COVER STORY QUALITY AND STYLE

THE LEADERS OF ITALIAN FASHION They represent the best of Italy: its very essence and its way of interpreting life. They are the great names of fashion. But also the creators of an industry that brings 51,000 million euro to Italy every year hat do we export? Unlike all other countries, including France with its Champagne and fois gras (selling the memory of a territory and culture, not its soul which is in Paris), we do not export goods, we export Italy. Its colourful essence, its way of interpreting life. Life itself.

Its smell. Its way of being. Shape. And shape is not the exterior, but what we are underneath.

This is not merely an idea. It is not limited to being an ethereal philosophy, communicated through words. Italian philosophy – compared to the Eastern one – becomes flesh and bone. Italy is milk and honey, poured into the dry mouths of countries and peoples in need of beauty. Italy does not sell formulas; it offers the market something that others are unable to, even when they copy us illegally. The name, the brand, is not a label stuck to random products, whose prestige is exaggerated through clever marketing. The nomen est omen: one’s destiny is in his name.

This is the unique quality of Italian fashion. Life’s draperies are translated into textiles and styles, and the wonderful scent of our sky and the way in which we look at it and think of it is bottled with the words Armani, Versace, Dolce e Gabbana written on the side. Both silks and perfumes are laid on the skin of a woman, allowing her to be herself, making her, deep down, truly Italian. Because, since the dawn of time, Italy has always been universal, stretching out with the Roman Em-

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pire and then – for better or worse – with the Catholic Church, which is universal and whose home could only be in Rome.

We will try to describe with humble words the merits and uniqueness of some men and women worthy of our praise.

Starting with Giorgio Armani. He is the elegant and refined essence of the “Made in Italy” brand. When in 1996, the Qatari broadcaster Al Jazeera – which was the highest culturalpopular expression of the Arab world – contacted me, they explained that they were interested in three personalities for a programme on Italy. Two were politicians, while the only member of civil society, obviously, was Giorgio Armani. After all, he embodies all that is “Made in Italy”. When asked about his theme, he gave this definition: “Beautiful, carefully done and created in Italy. From the beginning to the end.” Born in Piacenza in 1934, he studied medicine in Milan for three years, to then leave to start on his true path in the Rinascente store under the spires of Milan’s cathedral. Since then, Giorgio Armani has been Milan and its fashion, both cosmopolitan and practical.

Not excessive ornamentation but the essential. The inversion and contamination of roles: sweetening menswear and strengthening women’s suits, contaminating the male with the female, not for luxury but as a sign of quality. He has shown that grey is a colour in its own right and not merely its absence. Armani contradicts the stereotype of the imprecise Italian who is arrogant enough to think of himself as a poet. He is a maniac in search of perfection: he is both genius and moderation, creativity with ordered accounts. It is the turnover FEBRUARY 2014

HE SWEETENED MEN’S SUITS AND BROUGHT STRENGTH TO THOSE OF WOMEN, CONTAMINATING THE MASCULINE WITH THE FEMININE AS A SIGN OF QUALITY ITALIAN VALUE

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COVER STORY QUALITY AND STYLE

↓ Stefano Gabbana and Domenico Dolce

of his entirely Italian company that does the talking: 7,405 million euro with over 2,200 sales points throughout the world.

He has become rich, but he does not contemplate his power, and he throws himself into his work every morning. A king that recognises neither laziness nor holidays. Yes, King. “King George” was the title of the cover of the 1982 edition of Time magazine dedicated to Armani, just 6 years after the presentation of his first collection. He had already revolutionised everything. Thanks to him, fashion finally understood that it could be a catalyst of the economy. And yet, we still struggle to break down the mental barriers of the Italians. Fashion and textiles bring 51,000 million euro a year to Italy. And yet, we still struggle to leave behind the idea that industry is based on steel and petrol. You, my readers, and I are now here to testify to the contrary. Briefly. No one is as global as he, for the very fact he is Italian. His style centres on the comfort of Easterncut clothes reinterpreting European needs. Armani was one of the first to propose shirts with a Korean style neckline under business suits, comfort fit trousers, elegant colours in shades of blue and grey. The height of elegance without the foolish aspirations of exhibitionism.

There is another great name of Italian fashion. If Armani is Bartali, Gianni Versace was Coppi. Wrong. I was wrong to use the past tense. Versace is dead and we all know how (killed) and 18

ITALIAN VALUE

where (Miami). But he is immortal. An artist of excess; just as Armani is that of sobriety. Yet Armani fully understood Gianni’s stature, his “delicate heart”. In the foreword to Tony di Corcia’s book on Versace, he remembered him thus: “…a fantastic exuberance, a sense of happiness that mixed everything – ideas, trends, memories, art – with a kind of careless vitality.” Keyword: classicism. The Medusa head that distinguishes the brand is rooted in Magna Grecia where Gianni Versace came from. When Gianni came to Milan from Calabria, he opened the doors to celebrative and decorative fashion, bright gaudy colours, the contrasts of pastel colours with the typical gold of 18th century drapes. An immersion in the eternal. With the arrival of his sister, Donatella, to the creative management of the brand, her feminine touch lent a unique sensuality to women’s prêt-à-porter and an eccentric elegance to menswear.

All made possible by the wisdom of Santo, the first-born, elegant in thought and ready to give managerial consistency to the artistic grandeur of his siblings, now ready to welcome a FEBRUARY 2014

← Prada spring/summer ‘14 collection

↓ Gianni Versace

minority partner to the group. There are still many leading brands. But brands in fashion are primarily the style of the very person who first brought them to success. Like Miuccia Prada. It is true that the great lady of fashion took up the lead of her predecessors’ company. But she launched it. Her creativity was given an order and made entrepreneurial through her wedding to Patrizio Bertelli. The keyword to understanding her legacy to the world is the Luna Rossa sailing boat: the idea of challenging the sea, the full risk of following one’s impulse and beauty in the solidity of the project.

Gucci, keyword: strictness. Florence’s double G is the symbol of “Made in Tuscany” excellence. A strict, minimal style - never trite - allowed the brand to vary and diversify the lines of their collection. An unrenounceable leather good is the little trunk with bamboo handles. Last but not least, the acquisition of Ginori – Tuscan ceramics par excellence, aiming at relaunching it in great style without losing the brand.

Cavalli, keyword: savannah. Animalier is the stylistic code ITALIAN VALUE

of Florence’s Roberto Cavalli, who has gradually combined the eccentricity of tiger, panther, and zebra prints with feminine style for special occasions. The sincerity of his artistic touch has brought him success.

Dolce & Gabbana, keyword: Sicilian-ness. Or better still, love and death, Eros and Thanatos. Volcanoes and citrus fruits, the depth and mystery of the sea. Domenico Dolce and Stefano Gabbana brought the archetypal style of Sicily to high fashion. Pinstriped male suits, three pieces, vintage but contemporary cuts for a timeless style. For example, Madonna.

And that incredible, splendid combination between her style, Scarlett Johansson and the voice of Mina.

Trussardi, keywords: speed, light in the dark. The greyhound of the brand and leather, beautiful, unique, young.

In short, fashion is one of the strong points of Italian exports. Fashion is eternal because it changes, born as it is from our need for change. And no one is able to interpret it like Italian stylists. \\\\\ RENATO FARINA FEBRUARY 2014

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MADE IN ITALY LAVINIA BIAGIOTTI CIGNA

INNOVATION IN TRADITION Laura Biagiotti brand meets the challenge of international markets by focusing on the three pillars of Italian manufacturing: creativity, beauty and quality he fashion industry, one of the sectors that most identifies Italian brands, seems not to suffer from the global economic crisis. Thanks to markets opening up and the new consumers in the so-called emerging countries, Italian luxury is changing its horizons but still enjoys excellent prosperity. Laura Biagiotti, a historic Italian brand founded in the 1960s by Delia Biagiotti, is a confirmation of this trend. The first Italian designer to show in China in 1988, she has entrusted the group vice-presidency to her daughter Lavinia, who since 1996 has been supporting her mother in the management of this fashion house. Born in 1978, Lavinia Biagiotti Cigna is able to accommodate the changes that are currently transforming the fashion industry: social networks, blogging, new investment opportunities. It seems that all of these challenges do not worry her, since one of her mottoes is to make no difference between working and playing. “As the Chinese philosopher Lao Tzu once said, ideally we should pursue excellence in everything we do, letting others decide whether we are working or playing. In our own eyes, we are always doing both.”

What is the current situation of the Italian fashion industry?

“I would like to answer this question with a statement of Albert Einstein: ‘A crisis is the greatest blessing for people and nations, because it brings progress. Creativity is born from anguish, just as the day is born from the dark night. Inventiveness, discoveries and great strategies originate from crisis. Whoever overcomes the crisis overcomes oneself without being overcome’. The crisis is like a fascinating jungle that contaminates luxury and mass market, vintage and avantgarde, making beauty a canon of research and experimen-

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↑ Lavinia Biagiotti Cigna, since 1996 Vice-Chairperson of Biagiotti Group

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↓ The stylist Cesare Paciotti

CREATIVITY AND INNOVATION “FROM THE SELECTION OF MATERIALS TO THE CREATION OF SAMPLES, EACH WORK PHASE HAS TO BE WELL-FINISHED”.

CESARE PACIOTTI, A DESIGNER FROM THE MARCHE REGION (CENTRAL ITALY), REVEALS THE SECRET TO HIS SUCCESS

T

he history of the Cesare Paciotti trademark started in 1984 with the first line of women’s footwear, followed later by a line for men and

then brand extension (accessories, clothing, jewellery, underwear) classified among the top market luxury items. It did not take long before the Paciotti brand took over the feet of female showbiz stars worldwide. The brand today has 200 employees and satellite activities with about 1,200 associates, and is a byname for creativity, craftsmanship and innovation.

tation with infinite solutions. In conclusion, Italian products are our pride, but above all a resource. They are our oil.”

More and more Italian brands are acquired by foreign holding enterprises. How does this influence the creative brand chain and the tradition of well-made Italian products?

"The term ‘made in Italy’ is a fundamental enzyme of Italian society. It represents a factor of success, due to the originality, specificity and flexibility of our production system, Italy’s asset. Italian know-how is not always distorted by international acquisitions; in the eyes of the consumer the brand identity remains tied to the Italian manufacturer and history, even for those brands that have been acquired by large foreign groups.”

On April 25, 1988 Laura Biagiotti was the first Italian designer to present a collection in China, in Beijing. How important is the Asian market today and how has it contributed to the evolution of the brand?

“That event had extraordinary appeal in the world press because it represented the symbol of rapidly-changing times and ensured that the Chinese started to approach Italian luxury and quality. After many years, the Biagiotti trademark still feels the significance of that thread of cashmere and silk that binds the friendship of two great peoples and their cultures. These values represent an asset for the current strategies and new projects the Group intends to launch in ear-

Which are your main sources of inspiration?

“There are no pre-set or preferred sources when it comes to inspiration. Often, if not always, my creations originate from a personal re-elaboration of my experiences and the beautiful things I see.”

What typical features of the Marche Region’s footwear traditions have the Paciotti shoes conserved?

“Of course, the fact that production continues to be performed in our old footwear district. Its know-how lives on, also because I continually recall and remind myself and my associates of how shoes were made here in the past, the origins of my success.”

What aspects of artisan workmanship do you transmit in your company?

“It is fundamentally the attitude towards both the most complex and the simplest designs. Each aspect of processing is particularly intricate; even the mere insertion of shoelaces in an erratic manner could cause the product’s downgrading. From the selection of materials to the creation of samples, and then processing, even up to sales, every aspect must be well finished with the passion and unique stimulus that leads to excellent outcomes.”

And which innovative elements have been introduced into your productions?

“Artisan tradition is fundamental, but it would be erroneous not to apply it to the innovations offered by modern technology: product processing using ancient techniques is the least likely to succeed. But thanks to these

www.laurabiagiotti.it/en

technologies which up to a few years back were inaccessible to most due to the great costs, artisan care and ex-

@lavibiagiotti

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perience can lead to incredible achievements.” FD

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THE MASTER’S TOUCH DO NOT CALL IT FOOTWEAR. SILVANO LATTANZI’S PRODUCTS ARE WORKS OF ART: EXCLUSIVE, HANDMADE AND PERFECT

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stablished right in the heart of the footwear district of the Marche Region in central Italy, since its inception in the 1970s, the Silvano Lattanzi

trademark has managed to stand out by banking on the quality of a limited production of hand-sewn tailormade footwear, following ancient processing methods, using the best skins, and giving the utmost care to details. It is a choice which through the years has rewarded the foresight and courage of the person who is today called the “master of footwear”.

Silvano Lattanzi’s boutiques are presently found in the world’s biggest cities, from Milan to New York, Moscow to Tokyo, and St. Moritz up to Shanghai. The comapany's brain and heart, however, have remained in the town of Casette d’Ete in the Marche region, which also

THE FACT THAT WE WERE THE FIRST TO SHOW IN CHINA GAVE US GREAT RECOGNITION

hosts a permanent footwear museum with samples of all the models produced from 1971 up to today. This is where all the creations are born, which bear the Lattanzi trademark: tailor-made men’s and women’s shoes and a limited production of bags and items in leather.

You started with a small workshop, with just one worker helping to make your shoes which are now famous worldwide. Do you still personally monitor production?

“The products need to have the Silvano Lattanzi touch.

In some cases I personally monitor the laying out of the last and model. In others, I do the final check on the seams. This is what makes Lattanzi different, be it for better or worse, and the reason why we make 10 or at most 20 pairs of shoes per day.”

How long does it take to create one pair of shoes?

“It is hard to tell, beforehand. At times the processing has to be redone even six or seven times, before the shoe becomes perfect. Some say that a handcrafted item has to show some imperfections, precisely as proof that it was handmade. We instead aim for multiple originality: a shoe that is perfect in every detail and perfectly identical to the other.”

What distinguishes a Lattanzi from the others?

“Despite the fact that the first collection dates back to 1971, the Lattanzi trademark still symbolizes enticement, style and high fashion. Our shoes are refined but modern at the same time, and exclusiveness is our added value.” RS

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ly 2014.”

The history of the Biagiotti trademark can be seen in every fashion show. How important is your past and how important, instead, is innovation?

“The history of the Biagiotti brand runs through three generations of women. The common feature is the culture of a family-run business and the passion for this job, which is rooted in tradition but draws its lifeblood from innovation. Receiving from my mother the baton of one of the symbols of Italian manufacturing, as the Biagiotti brand is, means accepting a challenge, getting involved, loving tradition but mostly having great ability, and being competitive.”

Fashion blogging has helped broaden fashion shows to a wider audience. Today fashion shows are broadcast in streaming and, thanks to social networks, collections can be appreciated immediately. How does your brand approach these new ways of communicating fashion?

“Fashion's DNA is to look at the future, to anticipate it, and sometimes even to determine it. In this sense the young are a driving force of curiosity and energy. The challenge of the new media fits into a global context of great revolution, which forces us to acquire a mindset aimed at speeding up the flow of information about brands and products.

Blogs have become a new way to inform people. Our enterprise has always focused on the web and social networks.

We launched our first website in 1999, when very few brands were on the Internet.” \\\\\ TERESA BELLEMO FEBRUARY 2014

MADE IN ITALY MARIO BOSELLI

ITALY, WHERE STYLE AND EXCELLENCE ARE AT HOME It has been said that a dress is "beautiful and well-made" when it is Italian. An image which the National Chamber for Italian Fashion represents and safeguards both in Italy and abroad

talian style has value that is recognised worldwide and the fashion industry has suffered from the effects of the economic crisis less severely thanks to the positive impact of exports. Expo 2015, the Universal Exhibition which will be held in Milan, may prove to be an opportunity for this sector that cannot be missed. Mario Boselli, President of the National Chamber for Italian Fashion (the association that promotes the values of Italian fashion) invites enterprises to join business networks, while still preserving the individuality of each company, in order to face foreign markets with the right strength.

What is the climate in the Italian fashion industry sector?

"In the third quarter of 2013, a reversal in the economic trend has been recorded, both turnover and production of the Italian fashion industry have grown compared to the same period of the year 2012. These are the first positive signs that allow us to think of a recovery, in fact we expect that in 2014 the growth will strengthen, supported particularly by exports. Forecasts for this year are positive and the turnover is expected to grow by 5.4% compared to 2013, almost reaching the levels of 2011".

Regarding individual product lines, there have been generalised increases in exports, with the sole exception of ties (-7.8%). What countries have proven in 2013 to be lovers of Italian products and which are the most interesting ones?

"Among the major non-European markets, retail sales have grown particularly in the USA and Japan, Italy's memorable customers who have proven once again that they love Ital-

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ian fashion. But, in recent years, the percentage of Bric countries has also considerably increased, especially Russia and China, which are major markets for Italian products".

Recently, you have announced that 6 million euro in financing will be destined to the fashion industry.

How will these resources be used?

"The National Chamber for Italian Fashion has requested an allocation of funds for initiatives in favour of the promotion of Expo 2015 and of Milan as a creative city.

However, these funds have not been approved yet. They

↑ Mario Boselli, President of the National Chamber for Italian Fashion

FEBRUARY 2014

ITALIAN FASHION IS A STORY MADE UP OF TALENT, TRADITION, ELEGANCE, INNOVATION, ATTENTION TO DETAILS AND CREATIVITY

will be destined to the National Chamber for Italian Fashion, Altagamma, an organisation that brings together companies of Italian excellence , and COSMIT, the Organising Committee of the Salone del Mobile Exhibition".

What is the image of Italian fashion in the world today?

"The excellence of a style is the epitome of a country's history. Italian fashion is a story of talents, traditions of taste, culture of elegance, craftsmanship, innovative intelligence and attention to details, creativity and technical knowhow. It is said that a dress is "beautiful and well-made" when it comes from Italian fashion. Excellence is found here. In a skilful working tradition that knows how to combine aesthetics and intangible quality with the quality of technical innovation and new product materials. The National Chamber for Italian Fashion represents this traITALIAN VALUE

www.cameramoda.it/en @cameramoda

dition and this culture, in Italy and in the world".

What are the strategies that the National Chamber for Italian Fashion will implement to strengthen the role of Milan in world markets?

"Since January 2014, the National Chamber for Italian Fashion has had a new CEO, Jane Reeve, with whom we are collaborating on new projects in order to further strengthen the role of Milan as the capital of quality prĂŞt a porter. Our goals are: to care about young people, who represent the future of Italian fashion; more and newer services for our members, who are the pillars of the fashion industry; improvement of digital instruments, which represent the key to communicating with the world; teamwork, because with no cooperation there will be no results. In short, 2014 will be a year of great initiatives and innovation". \\\\\ RENATA GUALTIERI FEBRUARY 2014

25

MADE IN ITALY RAFFAELLO NAPOLEONE

COMMUNICATION: A MUST FOR EXPORT

Foreign market promotion is essential for SMEs and must be increasingly multi-channel. So says Raffaello Napoleone, managing director of Pitti Immagine ast January in Florence, the 85th edition of Pitti Immagine Uomo, one of the most important exhibitions in the world for men’s clothing and accessories collections and for launching new projects in men’s fashion came to an end. During the four days of the exhibition, over 1,100 brands exhibited their Autumn/Winter 2014/15 collections in the Fortezza da Basso, confirming a knack for product research and innovation. “Among exhibitors and protagonists of the special events,” said Raffello Napoleone, MD of Pitti Immagine, “we noted a desire to grow, strengthen the existing markets and conquer new and emerging ones, which are participating here with many quality buyers.”

Among the best performance, we noted an increase in buyers from the U.S. (+10%), a vital market for prestige and in its role as a global benchmark; the increase in Korean outlets (+5%) and the excellent performances of Sweden, Holland and Eastern European markets and buyers from Canada, Australia and the Arab Emirates.

Finally, we should note the origin of the foreign buyers: 120 countries took part, all nations that up until recently would never have been seen at an international exhibition of high fashion: from Central and Far East

L

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↑ Raffaello Napoleone, managing director of Pitti Immagine

www.pittimmagine.com/en/corporate.html

FEBRUARY 2014

← For more detailed information

WE WORK IN CLOSE CONTACT WITH ICE OFFICES IN SOME OF THE MOST STRATEGIC COUNTRIES IN TERMS OF THE “MADE IN ITALY” BRAND Asia, throughout the Mid Orient and from Oceania, South and Central America, and Africa.

What is the situation of Italian fashion and its prospects on the international level?

“2013, for the Italian fashion industry, saw an improvement in market performance, thanks to foreign sales which have, in many cases, supported the turnover of Italian companies. According to the data of SmiSistema Moda Italia, in the first trimester of 2013 total turnover decreased by 4.6%, but in the second trimester this was replaced by an increase of 1.9%, and between July and September 2013 estimations indicated a growth of 0.9%. This growth can be fully attributed to exports, which in the first seven months of the year reached 16,100 million euro. 2013 has been a historical year for the Italian fashion industry: for the first time, exports to markets outside of the EU exceeded those to EU countries.”

Pitti Immagine’s goal is to bring companies into contact with the world’s most dynamic markets.

From your vantage point, which are the most promiITALIAN VALUE

sing countries for Italian textiles and clothing?

“The latest data from the USA show that recovery has started and consumption will grow between 2 and 3% in the next two years. In Japan, the burst in consumption of 2012 and 2013 will slow in the next two years, but volumes will still grow. Among the most interesting markets are the emerging ones in the Far East, with China showing stable growth, though it is less intense now than it was in the last few years. This wave of growth through exports, for the most dynamic “made in Italy” companies – especially those working in fashion – will represent a breath of fresh air over the next two years.”

How does Pitti develop with the Italian Trade Agency (ICE)? Which events are you supporting?

“For a while now, we have been collaborating with the ICE in communication and promotion initiatives. We work in close contact with ICE offices in some of the most strategic countries in terms of the “Made in Italy” brand, with the aim of organising participation in missions of international operators and journalists at the FEBRUARY 2014

27

THE STYLE THAT IS A HIT ABROAD Fashion is an element of the Italian style.And the sector is recompensed by the markets extile-clothing exports are finally on the up. Data that for the varied world of Italian fashion means a return to growth after years of recession, even if the growth is still timid at just 2%. The positive sign comes exclusively from exports and mainly involves non-EU countries, especially the Far East, along with Hong Kong, Korea and China, which in 2012 showed double-figure growth. The U.S. and Russia play their part, but they are already mature markets, almost saturated. Europe, on the other hand, shows substantial balance while Italy continues to fall. Sistema Moda Italia (one of the world’s largest organisations representing the textile and fashion industries) forecasts a growth in turnover of 2.1% for the first half of 2014, encouraged by the fashion-clothing sector (+2.8%) and with textiles increasing again (+0.4%). Exports will grow by 1.8% with a general increase of a further 7.3%.

T +3.7%

The increase in fashion sector exports over the first nine months of 2013 compared to the same period of 2012

exhibitions in Florence. Furthermore, Pitti Immagine is investing a lot in online communication, through the e-pitti.com platform: a multi-lingual business-tobusiness service that allows companies to present their collections in a virtual form – through over 50,000 images and thousands of high resolution videos of products. Up until the month following Pitti's closure, anyone interested will be able to multiply their chances to contact buyers from all over the world.”

What tools and strategies can Italian companies use to face the challenge of internationalisation?

“I think that a mixture of tools is needed: from participation in exhibitions of reference to online promotion and communication, which have become indispensable in penetrating the global scene. Furthermore, co-marketing and co-branding operations and synergies with local operators on the various markets are all \\\\\ FRANCESCA DRUIDI vitally important.”

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FEBRUARY 2014

MADE IN ITALY CLAUDIO MARENZI

This data shows the path we should take in the near future. It is a sort of confirmation for the “Made in Italy” brand: there is much foreign demand for Italian products, while the world is showing a great need for, and interest in, Italian companies. Claudio Marenzi, appointed president of Sistema Moda Italia last July, is well aware of the path set forth. However, if what we are looking for is quality, this quality must be guaranteed. “I believe that, while I am president, I have the absolute priority of ensuring that the certification of origin is made official on a European level and for good. An important step for our textile-clothing industry but also, and above all, for the footwear sector.”

What are the prospects for 2014?

“After many years, we are finally experiencing growth, especially in textiles, which suffered the most and has now increased by +0.4%, while clothing has been on the up now for the past few seasons, showing values of approximately +4%. We expect this trend to continue or even grow in the second half of the year, as winter is the most important season in this sector.”

← Claudio Marenzi, president of Sistema Moda Italia

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Have foreign countries changed their approach to our products compared to the pre-crisis period?

“Yes. They are increasingly attentive to quality, not just of the finished product, but in all steps of the supply chain.

In this case, we are speaking of quality that encourages positive values, such as traceability of the production processes and the ethics of the chain. Companies are paying more and more attention to these topics, meaning that we must concentrate on strengthening them. Our product must be traceable as “made in Italy”; the problem is that this does not happen in Europe, because it is the only place in the world in which this type of certification of origin is not obligatory, but voluntary.”

How important is it to set up a system that moves beyond national boundaries?

“It is very important. In my opinion, there should be fewer local initiatives and more national - or even European - ones. If we do not start moving in this direction, we risk losing our identity and confusing the foreign client. More collaboration and communication is needed between the various organisations for initiatives abroad.” \\\\\ TERESA BELLEMO FEBRUARY 2014

29

MADE IN ITALY SALVATORE MERCOGLIANO

LUXURY PRODUCTS DRIVE THE TANNERY Despite international competition, Italian leather maintains its competitiveness and gains market shares thanks to its quality echnological development, stylistic innovation and environmental sustainability remain the competitive factors of the tanning industry, which keeps up the good name of Italian products. The production value of this sector has considerable influence. In fact, it represents 16% of the world production. Moreover, this percentage increases to 65% if we consider just the European Union. “The Italian tanning industry currently exports 72% of its products to 120 countries, while 20 years ago exports were to only 98 countries. Today it owns 25% of world finished lea-

T

ther exports” explains Salvatore Mercogliano, Director of UNIC, National Association of the Tanning Industry, and CEO of Lineapelle, the most important international fair dedicated to the tanning industry. “These results have been achieved despite the unfair competition by rivals (India, Brazil, China), which benefit from protectionism of their raw materials and from social and environmental dumping.”

As for foreign markets and the main uses of leather, what trends should be highlighted?

“These last few years we have experienced a decrease in the use of leather for footwear and furniture. The leather goods sector is holding up and leather bodywork is growing. As for the markets, China still represents a key area for us Italians, since this country takes up almost 30% of our products. For the 18th consecutive year, it remains our main foreign destination.”

Last October’s edition of Lineapelle trade fair hit important figures in terms of visitors and exhibitors.

www.lineapelle-fair.it/en @lineapellefair

← Salvatore Mercogliano, Director of UNIC (National Association of Tanning Industry) and CEO of Lineapelle trade fair

30

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FEBRUARY 2014

ITALY’S GLOBAL TRADE IN LEATHER (Tanned leather and worked; luggage, handbags, saddlery and harness; fur prepared and dyed) Value in billion euro (January-October 2013)

2012

2013

Exports

Imports

8,000 7,000

INNOVATION AND STYLE THE ITALIAN TANNING INDUSTRY RELIES ON THE UNION BETWEEN QUALITY AND SUSTAINABILITY

T

he Italian tanning industry counts 1,300 enterprises, which in turn have about 18,000 employees, with an annual turnover of almost

5,000 million euro. The sector is characterised by strong

6,000 5,000 4,000 3,000 2,000

local roots and by a powerful opening to foreign markets. It is mostly made up of SMEs and about 90% of its productions comes from three districts: Arzignano, in the region of Veneto (Northern Italy), which is specialised in big bovine leather for furniture and footwear; Santa Croce sull’Arno, in Tuscany (Central Italy), whose specialisations - particularly intended for the fashion

1,000

industry - are characterised by craftsmanship and flexi-

0

bility; and finally the district of Solofra, in Campania (Southern Italy), whose production was at first limited

Source: ITA on ISTAT data

to shoe uppers and later expanded to clothing, footwear and leatherwear.

What will the future of this event look like?

“There are 50 thousand enterprises and a turnover of $115,000 million connected with Lineapelle. It is a key event for all enterprises and its last edition was a further confirmation of its importance on an international level. The exhibition was able to differentiate itself through niche events, already well known worldwide, including Trend Selection New York, Trend Selection London, Anteprima and Lineapelle Asia. In order to meet the needs of the market, especially of the luxury market which makes up 35% of our production, starting in 2014 the events will be gradually antedated. The next edition of Lineapelle will take place in Bologna from March 11th to 13th, 2014.” \\\\\ FRANCESCA DRUIDI

The latest data (although partial) regarding tanning industry exports in the first five months of 2013 are encouraging. The industry in fact has recorded an 8% rise in the tanning leather sales to foreign countries. Specifically, the French and German markets are decreasing (respectively -6% and -4%), while Vietnam, Turkey, Poland, Korea, China and the USA have reported good performances. Data concerning production are also positive: in the period January-May an overall growth of 6% in value and 3% in square metre volume has been registered (with the exception of the sole leather data). Today, the most common use is intended for leather goods, followed by bodywork. Clothing and furniture, instead, are experiencing a period of uncertainty.

This industry has maintained a worldwide leadership position despite the fierce foreign competition based on protectionist measures and dumping. A key element for the sector is the import of raw materials, considering that the foreign supply covers over 90% of the industry’s need.

However, Italy is responsible for 65% of the European production and 16% of the worldwide production, but this is not only a matter of figures. Italian tannery products differ from others thanks to their manufacturing quality, high technological development and innovative design capacity. LT

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FEBRUARY 2014

31

MADE IN ITALY RAFFAELLA CARABELLI

BEYOND CHINA

Italian enterprises that produce textile machinery are looking at Southeast Asia and Africa. Ethiopia and Myanmar are today the most interesting countries to bet on xports account for 83% of the total production of Italian textile machinery, a sector that has been leading all our enterprises’ production activity for years.” Raffaella Carabelli, President of the Association of Italian Textile Machinery Manufacturers (ACIMIT), summarizes the scenario of a sector inclined towards internationalisation and whose 300 enterprises produced 2,417 million euro in 2012.

Why is the Chinese market slowing down?

“China has actually experienced a decline in sales of all foreign machinery, not only Italian machinery.

Among the causes of lower demand there is a widespread drop in consumption in Western markets, which has led to a slowdown in exports of Chinese textiles and clothing. In addition, we have to take into account the "slow growth" of the Chinese economy, which is also affecting the investment plans of the Chinese textile enterprises. As for European man-

“E

ufacturers, it has to be said that the strengthening of the Euro disadvantages the Italian presence on the main target markets.”

Yet, China remains an appealing market for the Italian textile machinery industry.

“The Chinese market already absorbs a large percentage of the demand for textile technology: about 21% of world Italian textile machinery - export by area - 2012 imports of textile machinery in 2012 took the road to China. Certainly, in the future the Chinese textile machin17% 6% ery industry will grow and produce an Europe North America extra EU effect of import substitution, but we 18% EU are still convinced that the technology offered by Italy, with its high level of innovation, will further strengthen its business opportunities in the Chinese market.”

Asia

9% Latin America

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5% Africa

Source: ACIMIT database

45%

↑ Raffaella Carabelli, President of the Association of Italian Textile Machinery Manufacturers (ACIMIT)

FEBRUARY 2014

TRACEABILITY IS THE FUTURE TFASHION IS THE VOLUNTARY CERTIFICATION SYSTEM THAT ATTESTS THE ORIGIN, HISTORY AND QUALITY OF ITALIAN PRODUCTS. BRUNO AMOROSO, PRESIDENT OF THE ASSOCIATION UNIONFILIERE, EXPLAINS IT

uaranteeing customers maximum transparency

G

regarding the production chain, while valorising Italian products of the textile and gold sectors.

This is the goal of the “Traceability & Fashion” project, promoted by Unioncamere and directed by Unionfiliere (the association of the Chambers of Commerce that valorise the “Made in Italy” brand). Bruno Amoroso, president of the fashion supply chain committee of Unionfiliere, outlines the initiative’s initial outcome which shows positive side effects for the protection and promotion of the Italian fashion sector on international markets.

How many companies in Italy have already signed up for voluntary traceability?

“I think I can say that the gamble we took in 2009, launching the Traceability & Fashion project, has been successful: the results are extremely positive. It is a

What are the features of the most promising markets for Italian enterprises?

“Those markets that in the medium term are likely to become production bases characterised by low labour costs, such as Ethiopia and Myanmar, are the most promising. Other interesting markets are represented by those countries that are going through a technological modernisation of their fleet, due to the size of their internal market or to the need to make their products more competitive on international markets. Ethiopia, Indonesia, Brazil and South Africa are all subject to constant monitoring by ACIMIT. In fact, this Association not only provides sector promotion on major markets, but also supports enterprises dealing with markets that are already considered appealing, including Myanmar, Uzbekistan and Vietnam.”

What makes Italian technology competitive abroad?

“Innovation is the element all successful enterprises have in common and our enterprises are highly innovative. Although the majority is small-sized, Italian companies know how to excel in their niche market thanks to the competitive ITALIAN VALUE

clear sign that companies are becoming more aware that giving the customer full and transparent information is ultimately what wins them over. At the moment, over 200 companies have been awarded the certification. This means that, with suppliers and third parties also being controlled, over 1,200 companies have been inspected.”

↑ Bruno Amoroso, president of the Fashion Supply Chain Committee of Unionfiliere

FEBRUARY 2014

33

MADE IN ITALY RAFFAELLA CARABELLI

Does this quality label represent an added value on the international markets?

“In an increasingly globalised market, with increasingly aware consumers, if a company can get an external organisation to certify the various phases of its production this is something that no doubt is appreciated abroad. To

83%

Exports The percentage of Italian textile machinery industry production destined to exports in 2012, amounting to 2,007 million euro

prove it, there have been numerous requests to translate the TFashion label in English, Japanese, German and Chinese, and the initiatives presenting the project abroad have been hugely successful. In particular, I would mention the presentations in Berlin, Moscow and New York and the foreign operators and opinion leaders who have come to Italy to meet the certified companies.”

Will this system be enough to stem the counterfeiting and “Italian sounding” problem in textiles and clothing?

“Certainly TFashion alone is not enough, but it does guarantee exhaustive and clarified information to the customer, providing companies with a further tool to fight unfair competition. The regulatory proposal of the European Union, which would make it obligatory to indicate a product’s origin and which is currently being considered by the European Parliament and Committee, is moving in this direction. Therefore, I hope it will be approved shortly.” FD

218

Companies The number of companies who have chosen to participate in the voluntary traceability project obtaining the TFashion certification.

Of these, 165 are in the fashion sector

34

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price-quality ratio of their products.”

Do the trade fairs and missions organised in cooperation with the Italian Trade Agency (ITA) remain the most effective promotional tools for this sector? “ These promotional tools remain fundamental because they have an impact on a really vast pool of potential buyers. Together with ITA, we think we have structured an extensive and detailed promotional programme that includes, for instance, the need to make our enterprises communicate with the foreign academic world. This would be possible through the creation of technology centres in collaboration with the most important educational institutions, or through the granting of scholarships for foreign students. Promoting the sector also means informing the market about new projects launched by the Association, such as the "Sustainable technologies" project. This ACIMIT initiative is aimed at witnessing the commitment of Italian builders in helping to implement a production cycle that respects the environment and reduces consumption.” \\\\\ FRANCESCA DRUIDI FEBRUARY 2014

MADE IN ITALY STEFANO DE PASCALE

THE CHARM OF ITALIAN JEWELLERY Italian gold and silver jewellery making represents one of the world’s top manufacturing sectors of the “Made in Italy” brand thanks to its competitive exports ith foreign sales representing around 75% of its overall turnover, the goldsmith sector is one of the most export-oriented areas of the Italian economy. Not least because the “Exporting La Dolce Vita” report, drawn up by the sector’s Italian manufacturers' association (Confindustria Federorafi) together with the consulting agency Prometeia, forecasts that in the thirty largest new markets, imports of prestigious products will go up from 115 thousand million euro in 2012 to 160 in 2018.

Stefano De Pascale, manager of Confindustria Federorafi, explains the scenario of the Italian goldsmith sector and suggests the most promising markets.

New markets, especially the oriental ones, will boost jewellery sales over the next five-year period. How are our companies preparing themselves for this challenge?

“The positive estimates concerning the foreign front represent a great opportunity, but there is a great handicap.

In fact, it is difficult to export jewellery to the BRIC and Asian countries due to their harsh import barriers, high duties, and extreme controls. Furthermore, the market is distorted because of the creation of logistical platforms, such as Hong Kong and Dubai in Asia or Panama in South America. This means that Italian companies lose control over their products once they arrive in these areas; there is no way to know how they enter or how they are marketed. This is why we are urging institutions to free access to these areas. Italian agencies are ready to compete on the international stage, if it were not for the fact that selling an average gold product in the U.S., with 6% duty tax, erodes more than 60% of the added value. And in China the same duty is 20%.”

Dimension is one of the main aspects that inhibits the growth of high level products in this sector and often forces our businesses to carry out transfers or

W

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buy-ups. How can we get around this?

“As recently demonstrated by large brands, especially in textiles and footwear, Italian entrepreneurs are loathe to the idea of uniting to safeguard productive excellence. Regarding our sector specifically, it is comforting to know that those top Italian names that have recently been acquired by foreign brands - such as Bulgari and Pomellato - in the medium term have increased their production levels, returning to Italy for some production processes. This means that our workers are top quality and that we are competitive in terms of cost. It is true that property rights move abroad, but this makes their productive activities stronger. We need, however, to do more for smaller businesses, especially regarding the incentives to sign network contracts.”

Regarding counterfeiting, we are awaiting decisive steps by the EU to protect the brand of origin.

“A European regulations system making it obligatory to specify the origin of products is a priority. Contrary to those who consider it an added cost for companies, we at Federorafi believe it to be a distinctive element also for traceability.” \\\\\ TERESA BELLEMO FEBRUARY 2014

35

MADE IN ITALY VITTORIO BORELLI

REGAINING COMPETITIVENESS The Chairman of Confindustria Ceramica, the Italian Ceramic Manufacturers’ Association, Vittorio Borelli, takes stock of the sector, noting the obstacles to be removed on the way to revival he Italian ceramic industry continues to invest 5% of its turnover in technological innovation and is following a path which is more and more directed towards environmental sustainability; this industry keeps on making its own way on international markets. But the evident contrast between the growing foreign trade and the Italian one, which is stagnant, risks compromising Italian tiles’ prospects. The Italian ceramic industry is still a world leader in value but has to face critical structural situations. Vittorio Borelli, Chairman of Confindustria Ceramica, outlines the financial statement of the sector in 2013 and the trend diagram for 2014.

According to the figures, how was 2013 for the sector?

“In 2013, the Italian industry of ceramic tiles recorded exports for 300 million square metres (+3.1% compared to 2012), while the Italian market reached slightly less than 90 million square metres (-5.4%). The annual production was equal to 335 million square metres (-3.3%).”

Is it possible to make predictions for 2014?

“At the end of the year we expect an increase of 1.6% in total sales, due to a 2.4% growth in exports thanks to the good performances of NAFTA (North American Free Trade Agreement) countries (+8%), the North African area and the Persian Gulf countries, where the expansion reaches almost 4%. In Europe we should have a positive trend, too.”

With regard to markets, what strategies are the enterprises of this sector adopting?

“The approach to exports of Italian ceramic products proceeds on two parallel tracks: the activity of individual enterprises and the initiatives of our Association in favour of different enterprises. An example of this is the CERSAIE trade show, organised by Confindustria Ceramica, which is the most important international Exhibition of Ceramic Tiles and Bath-

T

36

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↑ Vittorio Borelli, Chairman of the Italian Ceramic Manufacturers’ Association

room Furnishings world-wide and represents an amazing industrial policy tool for this sector. Our strategy involves all the stakeholders of the production chain such as suppliers, architects, building enterprises and private consumers; furthermore, we operate on all markets of the world by participating in exhibitions and advertising campaigns. The Association made the ‘Market Compasses’ available to enterprises, a market intelligence tool, and the Forecasting Report, in order to help entrepreneurs to identify those markets which are most suitable to their development potentials.”

You were talking about CERSAIE trade fair, why do you think this event is important on an international level?

“Because it is the place where companies present a world preview of their innovations. This can be seen by the fact that in the last October edition, exhibitors from 34 foreign FEBRUARY 2014

EXPORTS, A GUIDING LIGHT FOR REVIVAL

T

he figures speak for themselves. The crisis of the Italian construction industry, proved by the decrease of investments in buildings (-7.1%) and in

new estates (-23.7%), weighed heavily on the sales trend of ceramic tiles in our country during 2013. Foreign markets relieve the trend of this sector, with increases in the NAFTA area (+12.5%), in the Persian Gulf area (+11.7%) and in the Far East (+11.9%). Eastern Europe and the Balkan countries are stationary, while performances of more dynamic sales (+4.5%) have been recorded in Western Europe. The year 2014 should bring the first encouraging signs announcing the end of the recession tunnel: a 1.6% increase in total sales is expected, calculated as the sum of domestic stability and a growth in exports. Production should also reach, after a two-year period, positive results (+1.2%) while waiting for the definitive boost towards recovery in 2015.

300 million Exports Square metres of tiles sold to foreign countries in 2013 with an increase of 3.1% compared to 2012

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← ↙ Picture of 2013 edition of CERSAIE trade fair in Bologna

countries and visitors from 157 nations took part in the event. The innovations introduced during the exhibition were many. Among them, digital decoration which, thanks to the possibility of increasing formats, expands the aesthetic combinations and usage of ceramic coatings produced in Italy. The ever more faithful reproduction of natural stone materials and the enrichment of the colour range have further extended the scope of ceramics. With regard to bathroom furnishings, the second most important exhibition sector of CERSAIE, the design characteristics enrich bathroom furnishings even more, as well as taps and sanitary ceramics. There is also a growing attention to saving water, an important aspect considered by consumers around the world who are aware of environmental issues.” \\\\\ FRANCESCA DRUIDI FEBRUARY 2014

37

MARKETS RICCARDO MONTI

FOCUSSING ON THE “NEXT 11”

Russia, China and India. But also the Middle and Far East. When the market goes global, Italy can show off its expertise, based on the fame of the “well-made in Italy” t is mainly the so-called BRICS, those countries once described as emerging, that are reacting positively to Italian exporting companies. Despite a decline, due to the lull that has also hit these realities, today Italy is second only to Germany in competitiveness in foreign commerce and is first in the world for three sectors: textiles, clothing and leatherwear-footwear. Ranked second, after Germany, in non-electronic mechanics, basic manufacturing and general manufacturing. Basically, our country comes out on top in those sectors that have always been the feathers in our cap. From this point of view, a country like Russia, for example, with a population of over 140 million potential customers, a growing middle class and gre-

I

at infrastructural need, may certainly prove to be one of the most interesting markets for Italian companies, both for commerce and investments. The former Soviet Union and Italy complement each other in many ways, in fact: Italy mainly imports raw materials and exports those manufactured goods that Russia mostly buys abroad. But it is not just Russia, Italy is facing many countries in fast development that have a particularly wide supply of consumers. Riccardo Monti, president of the Agency for Foreign Commerce (ITA) explains.

In short, Italian products are proving successful on new developing markets such as Russia.

“The performance of Italian exports in Russia is particular-

THE AXIS OF GROWTH REMAINS FIRMLY IN THE HANDS OF THE EMERGING MARKETS. AS WELL AS THE BRICS, THERE ARE ALSO THE SO-CALLED “NEXT 11” 40

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FEBRUARY 2014

Top ten markets with high consumption growth potential CONSUMER GOODS

INFRASTRUCTURE

INVESTMENTS

United Arab Emirates

Indonesia

Saudi Arabia

Chile

Pakistan

Mexico

Malaysia

Vietnam

Indonesia

Qatar

Thailand

Thailand

Saudi Arabia

Mexico

Chile

Mexico

Nigeria

Tunisia

Morocco

Malaysia

Malaysia

Serbia

Egypt

Morocco

Kazakhstan

Saudi Arabia

Colombia

Angola

Iran

Peru Source: Prometeia and ITA

← For more detailed information

↑ Riccardo Monti, president of the Agency ITA

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ly positive. 2012 closed with an increase of 7.4% and the first six months of 2013 have confirmed this trend with an increase in Italian sales of 10.1%. In collaboration with the main associations of the category, we have set up many scouting activities in regions of Russia far from Moscow in the fashion, furnishing, building materials and mechanics sectors. There is also the support of large specialised events, such as worldwide exhibitions and OBUV, which have profited from ITA a lot in terms of communication and buyer invitations. Finally, we offer personalised assistance to companies, with over 3,000 Italian companies supported annually in the Russian Federation.”

And in China?

“Here the growth in GDP, but above all a different importation structure, is encouraging growth in those sectors that best represent the Made in Italy brand and in some cases perFEBRUARY 2014

41

A NETWORK THAT CREATES BUSINESS THE CHAMBERS OF COMMERCE ABROAD ENCOURAGE THE ESTABLISHMENT OF ITALIAN COMPANIES ON INTERNATIONAL MARKETS

T

he Italian Chambers of Commerce abroad, named Assocamerestero, are associations of Italian and local entrepreneurs and professionals working both

to favour the internationalisation of Italian companies and to promote Italian products throughout the world.

Approximately 70% of the 24,000 associated companies are represented by local enterprises that recognise Italy as a partner for business or investment. The organisation’s president, Leonardo Simonelli Santi, explains which sectors and markets are the most interesting for Italian companies.

What role do the foreign Chambers of Commerce play?

“Our association organises Italian missions abroad or foreign missions to Italy, as well as business meetings between Italian and local entrepreneurs. This work takes up more than 60% of our services, which are coupled with assistance during participation in exhibitions.”

In which markets is the organisation working most to develop opportunities for Italian companies?

“The network of foreign Chambers is present in 54 countries and was founded because foreign countries are extremely interested in developing business relationships with Italy. Italian entrepreneurs, for their part, are paying close attention to the Gulf countries, Asia in particular growing markets such as Vietnam, Korea, the Philippines and Malaysia - and to Eastern Europe, for example in Ukraine. But Central and South America are also interesting areas. Nonetheless, business opportunities are being developed everywhere, even in areas close to us: few are aware for example, that Switzerland is our second ranking non-EU partner, with a surplus of over 7,000 million euro.”

In which sectors are Italian companies investing most abroad?

“The sector of machinery and mechanical apparatus represent the main field in Italian investments abroad, but opportunities must be identified in the contexts of each individual country. For SMEs, the true core of investment is in commercial and productive agreements, not only for the manufacturing sectors but also in services: from design to renovation, from computerised technological assistance to the environment, from environmental technologies and processes to recycling.” GG

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formance is excellent. The Agency aims at strengthening dialogue between Italian and Chinese entrepreneurs, not only in Peking or Shanghai, but touching China’s main future points of development, with the goal of intercepting new markets, new interlocutors and new investment opportunities.

In the consumer goods sector, we have contributed to the initial internationalisation of exhibitive brands such as Milano Unica and Micam - fully aware that system strategies yield more than excellent products alone.”

India could also prove to be a good market for expansion.

“In India, there are ample margins for growth on two conditions: that we widen our range of action beyond the traditional markets such as Delhi and Mumbai and sell ourselves not only as exporters of the traditional four products (clothing, furnishing, apparatus and machinery and food), but also as complementary partners in sectors such as renewable energy, water treatment, waste management and the cold chain.”

And which are the markets that over the next few years may prove to be particularly dynamic and profitable for Italian products?

“In choosing the markets, we need to do more than just take into account the traditional variables of development such as demography, GDP, GDP per capita, and taxes; we also need to know how to decipher the quality of the distribution system, ease of doing business and the political and operative risks. The axis of growth, beyond the swings in the economic cycle, remains firmly in the hands of the emerging markets. The Goldman Sachs bank has coined the formula of the so-called “next 11”: Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, Turkey, South Korea and Vietnam, markets with high potential for investments and export.” \\\\\ TERESA BELLEMO FEBRUARY 2014

MARKETS GIUSEPPE TRIPOLI

REGAIN MEDITERRANEAN PRIMACY The“Next Eleven” countries and Sub-Saharan Africa, these are the strategic road maps of the Italian small and medium enterprises (SMEs) in the search for new markets

he competitive race is compelled in the direction of the international markets, given the “dynamics of decreasing, if not recessive, internal demand, like that of the last four to five years”. This was stated by the Chief of the Enterprises and Internationalisation Department under the Minister for Economic Development, Giuseppe Tripoli. As guarantor of the interest of 99% of the Italian textile producers, Tripoli analysed the export performance of the SMEs and traced the scenarios, underlining that the “thrust towards exports has always been a typical dimension of the Italian system.”

What is the current competitive level of Italian enterprises on the International scene?

“Our exports for 2013 in the amount of around 490,000 million euro, show positive results and are worth about a third of our gross domestic product (GDP), a growth of 3.2% compared to 2012 and a credit balance of 18,000 million euro. In Italy today, we have about 190,000 export enterprises constituting 4.2% of the total active businesses, about half of which belong to the manufacturing sector. Though they still are a minority in the Italian panorama, one out of two has increased its sales.”

Which enterprises have produced the best results?

“The medium-sized ones working in the high technology sector have done so. There are about 45,000 manufacturing enterprises that have steadily exported from 2010 to 2012 about 263,000 million euro, with an overall 10.9% increase in sales last year. Two of the objectives included in the export plan finalised by the government and the country’s economic institutions are to double the stable export enterprises and bring the value of our exports to 630,000 million euro within the next three years.”

In which markets are Italian products gaining

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↑ Giuseppe Tripoli, Chief of the Department of Enterprises and Internationalisation under the Ministry of Economic Development

ground? And in which markets are they still underperforming compared to their potential?

“The data demonstrates, that we are growing in markets other than the traditional ones in continental Europe and North America: in 2013, we increased by 12.7% in the BRIC Countries, (Brazil, Russia, India and China) 11.5% in Russia and 9.3% in China. We are targeting to then consolidate our exports to the so-called “Next Eleven” countries: Bangladesh, Egypt, Indonesia, Iran, South Korea, Mexico, Nigeria, Pakistan, the Philippines, Turkey and Vietnam, to where, already in 2011, we exported 23,600 million euro worth of goods. Lastly, a highly potential area in which we are still not strong enough is Sub-Saharan Africa: it is therefore no surprise that we have planned to open four new offices of the Foreign Commerce Agency at Addis Abeba, Lagos, Luanda and Maputo.”

How has Italy’s presence changed in the Mediterranean Basin?

“Commercial exchange between Italy and the Mediterranean areas in 2012 totalled 61,000 million euro, showing a 76.8% increase between 2001 and 2013, which put us in first place in the EU for exchange with transborder countries. Despite the turbulences connected to the so-called “Arab Spring,” the trend of our exports FEBRUARY 2014

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grew by 3.9% also in the first quarter of 2013. We need to emphasise that many southern Italian enterprises are taking their chances in this area: the South in fact is the second Italian macro-region for Mediterranean trading in the amount of 14,700 million euro and an uptrend of 11% in 2013. There is also an increase in the number of Italian capital enterprises operating within a vast radius from the Mediterranean basin: about 2,000 for Turkey, Tunisia and Morocco.”

What importance does this area have for the Italian economy?

“The southern banks of the Mediterranean hold a strategic importance for Italy, given that with 37.5% of the total goods transported, our country is a leader in Europe in short seaside shipping around the Mediterranean basin. This may facilitate the entry of Italian enterprises into the neighbouring markets of Africa and the Middle East.”

National internationalisation policies of businesses are banking on the company networks. How strongly do the small production enterprises believe in this tool?

“Over the last year, there has been an exponential growth of the networks: in Italy today there are more than 1,000 networks, with over 5,000 member enterprises. Presenting ourselves abroad through expert entrepreneurs and pooling our resource assets, professionalism and experience may allow the Italian SMEs to try their first experience in the foreign markets.” \\\\\ GIACOMO GOVONI

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MARKET DESIRABILITY Before choosing which market to invest in a thorough analysis of pros and cons is needed any entrepreneurs believe that one or two appealing factors are sufficient to determine whether a market is suitable for their business or not. As a matter of fact, in the last five years 32% of Italian enterprises frustrated significant economic efforts due to wrong analyses. Considering the severe financial crisis the Italian SMEs are facing, this percentage is extremely high. Bruno Carenini, international Business Manager, explains that “Italian entrepreneurs usually choose a country where labour cost is lower than in Italy or where they could benefit from grants, which rarely happens.

Actually, important factors such as the five-year plans for the national economy of a country, its rate of employment, level of schooling and culture or its labour law are never taken seriously into account.”

At the present day, what are the most promising international markets?

“China is still a promising country due to its wide territory and demographic growth, but there are also other areas which are as interesting as China. In the next five years, the Brazilian government will be investing in infrastructures and offering financial aids to the north-eastern area of Brazil, including the State of Cearà. In India, despite its currency problems, there are some strategic areas that are particularly interesting for enterprise networks and subcontracting clusters. Angola, where the traditional investing

M

FEBRUARY 2014

MARKETS BRUNO CARENINI

@bcarenini

countries are Brazil, Portugal and China, is about to change its trade balance - whose profits are now generated by crude oil extraction and sales - and in a short time more and more enterprises from all over the world will be investing in this country. Moreover, I would list Turkey, Morocco and the Balkan area as secondary markets. However, in my opinion, the most desirable market at the moment remains Russia, with the only misgiving, unfortunately, towards the perpetually ongoing process of democratisation.”

In which way, with your expert advice, do you help those entrepreneurs who want to do business abroad?

“I have been dealing with international institutional policy and business strategies in foreign markets for twenty-five years. I contributed to the creation of four important Italian industrial clusters around the world. Thanks to my experience gained in the field, I am able to listen

↗ A view of Salvador da Bahia, the capital of the Northeastern Brazilian state of Bahia

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to entrepreneurs, understand their ideas about investing in new markets and help them with this. I am convinced that the internationalisation process does not end with the construction of a plant, but it goes on with a careful planning of communication, and institutional and social relations in the territory.”

Which is the right attitude towards international markets?

“On the one hand, globalisation has strongly highlighted our problems, but on the other hand, it has made us rediscover the values we had too easily forgotten. Today, everything may seem more complex, but we just need the will to change our attitude and the way we enter new markets that are different from ours. Italian products are appealing everywhere, but beyond our borders we need to make them more visible and enhance our communication skills. We have to be extremely proud of our production capacity and of our know-how but, above-all, we need to reassess the great importance people in the field have. The human being is the real driving force able to convey products which, although of high-quality, are no longer competitive per se. We need to put ourselves on the line, for example by creating enterprise networks, because at the present day this is the only way to conquer international markets.” \\\\\ RENATA GUALTIERI FEBRUARY 2014

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MARKETS CESARE ROMITI

CHINA MISSION

Italian entrepreneurs meeting the challenge of the Chinese market are on the rise. The Italy China Foundation is accompanying them on a journey that is not always easy

→ Cesare Romiti, President of the Italy China Foundation

he Chinese government has identified seven strategic sectors which will act as a pillar for the development of the new industrial structure in the country in coming years. Energy saving and environmental protection, the latest generation of information technologies, biotechnologies, production of advanced machinery, alternative energies, new materials and ecological vehicles. These are, therefore, the sectors that Italian entrepreneurs intending to enter the Chinese market must master. This conviction is held by Cesare Romiti, at the helm of the Italy China Foundation, who emphasises how much the country is increasingly constituting a resource rather than a threat.

“In recent years, the Foundation has organised dozens of events to demonstrate the opportunities that arise from Chinese growth and to give visibility to the success stories of our companies in China.”

What is the potential for interaction between Italy and China?

“According to the data that is processed every year by our research centre, from a market point of view, the prospects for growth for foreign companies continue to

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increase. More specifically, we see that, compared to 2012, the value of Italian exports to China increased by 3.8 per cent in the initial 7 months of 2013. From a cultural perspective, we are witnessing a peak in interest of the study of the Chinese language and culture, by both students and professionals and entrepreneurs. Our permanent training schools work on this very issue, providing a high quality and tailor-made educational program.”

How is the Chinese economic-social system changing?

“Foreign companies are having to deal with this period of political transition that has occurred in recent months, while continuing, however, to look to the Twelfth Five Year Plan, which says a great deal about the lines of economic and social development of the coming years and can therefore act as a guide for investments. Disclosed in January 2011, the plan focuses on both the continuous urbanisation of the country and on less reliance upon exports and fixed capital investment for the national economy. In this sense, from the macroeconomic perspective, the deficit between China and Italy will be reduced, as the Chinese companies are likely to be more oriented towards domestic consumption. As a result, the opportunities for companies that export to China will increase, but also for FEBRUARY 2014

www.italianembassy.org.cn

THE MOST CRITICAL ASPECTS OF THE CHINESE MARKETS ARE LINGUISTIC AND CULTURAL DIFFERENCES companies based in other markets that have suffered from Chinese competition in the past.”

Which specific sectors should Italy look to most?

“The most interesting sectors are those of clean energy, tertiary industry and health. A winning strategy would be to concentrate on the high-end bracket and niche areas of the market. It is no longer possible to think of serving the Chinese market without a direct commercial presence, so the issue of exporting is directly linked to that of direct investments. Territorial positioning is also of fundamental importance: by 2035, in China, over 1,000 million people will live in 600 cities, with an increase in the urban population of approximately 340 million inhabitants. Our enterprises must definitely be ready to alter their strategies based upon the changes that China is undergoing.”

How do the Chinese see Italian enterprises?

“Italy for the Chinese is the country of taste, beauty and quality: our technology is an excellence that we should protect and disseminate. In China, this capacity of ours is recognised and appreciated, especially in some sectors, such as those of advanced machinery. But there are also negative aspects. Our companies suffer from a scarcely pragmatic approach to the market, due to the ITALIAN VALUE

fragmentation of the ‘Italian system’; this penalises our entrepreneurs who unfortunately struggle to be supported by institutions.”

For an Italian entrepreneur, what are the greatest difficulties, not only in economic but also in cultural terms, in penetrating the Chinese market?

“The most critical aspects are the infringement of intellectual property, linguistic and cultural differences, difficulties in finding suitable local partners and aspects linked to bureaucracy. From a cultural perspective, it is essential for our entrepreneurs to be properly prepared.

As I like to say, a correct interpretation of the Chinese market starts from a correct interpretation of the Chinese situation.”

In addition to training, what are the other aspects that should be focused on?

“One strategy that should not be underestimated is that of human resources: an Italian company wanting to be successful in China should consider that local management is essential for understanding the Chinese consumer, making decisions in a timely manner and appropriately conducting political relationships with Chinese institutions.” \\\\\ TERESA BELLEMO FEBRUARY 2014

47

THE WORLD’S BIGGEST CHIEFS

The political scientist Edward Luttwak distinguishes the so-called great powers between those that are productive and those that are unproductive, assigning to the former the ability to influence decision-making on a global scale

he geopolitical world is evolving: Europe is taking a step back, the USA is holding out and Asia is champing at the bit. This is a dynamic greatly accelerated by the economic crisis, actually changing the relationships of power that govern the international arena. Together with Edward Luttwak, a U.S. economist and political scientist, we examined these relationships in order to understand where the control panels that govern the fate of the world are located today and who manoeuvres them.

Where is the world's decision-making hub shifting to?

“Everything passes by way of the China-USA confrontation, with Moscow in the delicate position of kingmaker.

When the Chinese are able to rely upon the support of the Russians, everything becomes easier for them, starting with the trade of raw materials. However, China must ensure that its growth does not overly alarm the Russians, otherwise the latter will end up aligning with the United States and in that case the balance would be reversed.”

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In what places and international figures are the most influential powers now concentrated?

“Today, a major decision-making centre is in California's Silicon Valley, with its enormous archipelago stretching from Sweden to Israel, and as far as Singapore. Just look at the effects produced by the recent hacking scandal involving the U.S. National Security Agency: the only entity to have a powerful influence over Washington was Silicon Valley, such that, in order to discuss possible reforms in relation to U.S. surveillance practices, President Obama talked to the giants of the Web, including Google, Yahoo and Facebook.”

What makes them so powerful?

“The fact that they are very cohesive, they speak with each other, see each other, they are friends. This constitutes true power. Other types of power are the prerogative of the industries of the Chinese State, such as the oil company Sinopec, or the China Development Bank, which enjoys considerable independence and uses it to make large investments. It is therefore a new power structure, with a purely economic matrix.”

FEBRUARY 2014

INTERNATIONAL POLITICS EDWARD LUTTWAK

→ Edward Luttwak, American historian and political scientist ↓The headquarter of China Development Bank

@EdwardLuttwak

And in Italy?

“Italy is one of those countries whose political class is made up of an extremely strong local power. In Italy, the political class really does exist and is integral within it.

Its skill is to centralise in itself the decision-making power albeit representing an absolutely unproductive power. In the world, there is conflict between productive power centres and unproductive power centres.”

A delicate area to be managed for achieving world balance is that of Islam. What moves are expected on this front and by which protagonists?

“The way to handle Islam is not to attack, not to speak, not to react. Once you establish a dialogue, you legit-

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imise their leaders who, on one side, are instigating destruction, yet when speaking to CNN they are calling for harmony. If Muslims feel attacked, they consolidate among themselves. This is why it is a better idea to assume a peaceful position in their regard.”

At the moment, Europe seems to be the Cinderella of the international economy.

“Europe has always been the true source of Western civilisation. The whole world is ‘Europeanised’. Many have their local cultures, but the European one comes out on top everywhere. At the same time, Europe, every 2-3 generations, has a tendency to go a little crazy. The current form of madness is represented by the monetary fanaticism of the Euro which is destroying the very foundations of the European economy and has encouraged the onset of immoderate situations sliding into populism.”

In the European context, do you see anyone who may be able to subvert this trend?

“Unfortunately, at present, I only see a big anomaly called the European Central Bank which only responds to the divine government. The ECB is the biggest mistake because it is an institution without any form of supervision, which does not respond to any representative of the people. Abolishing the ECB, with everything that it entails, is a necessary step in order to overcome this crisis. It is not a case of finding the right people, but becoming free of this monetary fanaticism.”

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49

In the latter half of 2014 Italy will have the task of chairing the EU. In what way, through this role, will our country be able to improve its positioning on the international panorama?

“Italy could best use its half-year chairing the European Union and mark a change only by resolving the problem of the Euro, allowing Europe to regain its health. Unfortunately, this will not happen so I do not think that Italy's position will have changed very much at the end of that assignment.”

In a hypothetical ranking of the CEOs who have the reins of the world in their hands, who, in your opinion, will move up in 2014 and who, on the other hand, will slip down?

“On the scene, there is a strong decline of financial CEOs. All the banks have lost much of their independence. On the other hand, the production CEOs are on the up. We have spoken of Silicon Valley but we can also add to it the U.S. automobile industry and all the small entrepreneurs around the world who are providing employment and creating innovation. There are also some in Italy: I am thinking of the Veneto company, Geox, which produces quality shoes and clothing, for example; it makes new products and distributes them around the world. However, your country unfortunately has the highest tax burden in the world which is strangulating the vital element of the domestic system: enterprise.” \\\\\ GIACOMO GOVONI

TODAY, A MAJOR DECISION-MAKING CENTRE IS SILICON VALLEY

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THE RIGHT MOVE FOR CHANGE Italy is a country on the verge of regaining economic stability and a renewed international image s early as last May, in Rome, when leaving the presentation of the new OECD report on Italy's economic situation, the feeling was encouraging. In the presence of the leading figures of the Italian government, the Secretary-General of the OECD, Angel Gurria, acknowledged "the efforts made by Italy in launching an ambitious programme of reforms". Today, that opinion has been reinforced, as reiterated by Carlo Maria Oliva, Italy's permanent representative at the OECD in Paris.

“The latest forecasts," explains the ambassador, "have confirmed Italy's exit from the recession and its imminent return to positive growth rates.”

How has the perception of the Italian situation changed in recent months among the other member countries of the OECD? “The Italian political context and its economic situation are monitored very closely by the OECD and I have recently witnessed more optimism. The OECD superindex has, for some months, suggested the imminence of a turning point. The latest economic data suggests that Italy's economic activity is stabilising and that the country is moving towards a gradual recovery. But it is certainly not time for us to rest on our laurels. Italy must continue on the journey it has undertaken and take this

A

FEBRUARY 2014

INTERNATIONAL POLITICS CARLO MARIA OLIVA

→ For more detailed information

opportunity to re-launch itself, continuing with its path of reforms and ensuring that they are fully implemented.”

Which countries of the OECD area are growing most rapidly and thanks to which strategies? Which countries, on the other hand, are struggling to get back on their feet?

“The overall recovery is still moderate, with different trends both between the main areas and within them. The emerging countries are slowing down, while in the United States, which has been able to rely upon expansionary policies, the prospects are inclined towards a more decisive recovery of economic activity. Japan is gathering the first fruits of the Abenomics, but it will take more courage to implement the structural reforms needed to increase its growth potential, also in view of the necessary actions to consolidate its public finances, which can no longer be put off. The recovery in the eurozone remains fragile and unequally distributed. In countries like Germany where, even before the crisis, forward-looking measures had been adopted, the prospects for growth and those of the labour market remain the best.”

Numerous countries are intensifying their commercial relationships, even by way of bilateral agreements.

The most recent include that of the EU and the United States. How do you view these strategies?

“The inclination of the OECD towards liberalisation and mulITALIAN VALUE

↑↑ OECD Ministerial Council Meeting 2013 ↑ The ambassador Carlo Maria Oliva, Italy's permanent representative at the OECD in Paris

tilateralism is motivated by the awareness that trade constitutes a positive sum game. In view of this, the recent initiatives of regional or multilateral commercial agreements, such as the US-EU Transatlantic trade agreement, are seen as an opportunity to promote growth and to create jobs.”

Do you commend the initiatives to create business opportunities and employment undertaken by the Italian Government?

“I believe that the initiative known as “Destinazione Italia” is a good example. It is a comprehensive and organic plan aimed at attracting foreign investments to Italy. The plan identifies a good 50 measures intended to make Italy more appetising to foreign investors and to increase the competitiveness of our companies.” \\\\\ GIACOMO GOVONI FEBRUARY 2014

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FINANCE THE FEMININE SIDE OF FINANCE

THE WOMEN OF FINANCE

Christine Lagarde and Janet L. Yellen: two globally influential women. How they govern money’s path and its rules. The hope that finance becomes a tool for development and a guarantee for the future

hat we needed was women. What we need is women. So, when on October 9th, Barack Obama announced – against all odds - the appointment of Janet L. Yellen as the head of the Federal Reserve (Fed), she was immediately sent a message. A card worth more than any phone call. Written in a hand as elegant and confident as her suit, Christine Lagarde, Managing Director of the International Monetary Fund (IMF) wrote of her happiness. The words have not been made public, remaining a secret between women. But on Bloomberg TV, Lagarde was radiant: “Great news that a woman is leading the Fed; this is a huge potential that must be encouraged.” Basically, it is good news that world finances, the guidance of money, its rules, its ethics (if money has ethics) is in the hands of women. Lagarde has the power of directing the Bank of Banks, which has 187 share-holder nations, and which – according to her when she was appointed to the role in July 2011 – has the task of

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↗ Christine Lagarde, Managing Director of the International Monetary Fund

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“promoting sustainable growth, macroeconomic stability and a better future for all.” Yellen has the role of deciding how many dollars to print, where to lend them and therefore conditions the lives of both the tycoon in Chicago and the fisherman in Micronesia. Two women who are pretty much omnipotent. If we add that the Bank of Russia is in the hands of another woman, Elvira Nabiullina, we have achieved a female Trinity. Is this all linked, or is it coincidence? Hegel would put it down to “a stratagem of history”, or in this case – herstory.

But let us take a step back for a moment. Let us go back FEBRUARY 2014

WOMAN EMBODIES THE CONCRETENESS OF MATERNITY, OF THE HOME. THIS IS WHY IT IS GOOD THAT FINANCE END UP IN FEMALE HANDS to the moment when, in 2011, Christine Madeleine Odette (Christine Lagarde’s full name) was placed at the head of the IMF. Her predecessor, Dominique Strauss-Kahn, had resigned after a sexual assault scandal – later revealed to have been made up by a manipulative chambermaid.

Who to replace him with? Another Frenchman, as a counterweight to the American majority. During that summer, finance was at the height of madness. A real thunderstorm in progress. The crisis which exploded in 2008 had blown up once more (only now – knock on wood - does it seem to have lost some of its destructive power). Who had led us to that point, and by doing so pushed humanity to the edge of the abyss? Men, the males of the species. Nobel prize-winners. Convinced that finance can multiply infinitely, despite the finite nature of the world. The Greeks would say: hybris, irrevITALIAN VALUE

erence. Men do not have their feet on the ground. They fly. They lose all contact with the hard and loved matter that the world is made of. They believe they can multiply reality with virtual tools. They believed it. Until youknow-what happened. According to prudential calculation, virtual money would suffice to buy the world’s goods eleven times over. Wax wings melt.

Women, as Kierkegaard demonstrated with his analysis of the female universe, are made of the concreteness of maternity, home and goods. Which is why finance must end up in the hands of the fair sex.

They are certainly two very different women.

Christine Odette Lagarde is 57 and is of a peerless class and finesse. She enchants everyone. She is no economist, nor is she an expert in finance – at least in her studies, coming from a law background. Very courageous, at the FEBRUARY 2014

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age of 22 she left Paris and, starting as an intern to an American senator, in 1981 she joined a very important legal studio (Baker & McKinzie) where, starting from nothing, she climbed to the top and multiplied business.

In short, she is not a theorist of economics, but someone who knows how to assert herself in a difficult world.

From there she moved into politics and was a minister several times, until French ex-President Nicolas Sarkozy called her to the Finance Ministry where she was voted best of the Eurozone by the U.S. paper, the “Wall Street Journal”.

It cannot all be sunshine and roses. Well, no. And in this case the darker side was the classic one given of any powerful woman: servility to a man. In this case, Sarkozy.

During a search of her house, for an investigation that

↗ Janet Louise Yellen, president of the Federal Reserve

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did not affect her elegance and calm manner, a letter to president Sarkozy was found, and nastily published by the paper “Le Monde”. In it, she wrote “Dear Nicolas”: “Use me as long as you need”. She did not bat an eyelid and, with her innate class sidestepped the murky waters of scandal and calmly survived. And what happened to Sarkozy in the meantime? He drowned. So who used whom? Ah, women!

Now she is trying to straighten out the course of the IMF. Finally, under her guidance, the Monetary Fund has realised that all forecasts were wrong. The fault lies with the exaggerated rigour and austerity that, in trying to pay debts, has the opposite effect and triggers recession.

Good luck, Lagarde. Because you are facing up against Angela Merkel. Who, on the other hand - according to German logic which would see other countries being frugal so that Germany can be spendthrift – wants nothing FEBRUARY 2014

FINANCE THE FEMININE SIDE OF FINANCE

LAGARDE HAS THE POWER OF DIRECTING THE BANK OF BANKS. YELLEN THAT OF DECIDING HOW MANY DOLLARS TO PRINT AND WHERE TO INVEST THEM

to do with expansive policies. For example Greece. On its death-bed after taking a heavy-handed medicine.

Janet L. Yellen appears to be the opposite – and in fact is, at least as far as image is concerned. She could not prise herself into one of Lagarde’s suits even with a whalebone corset. Janet is a friendly sixty-six year old with a crown of white hair. She would not dream of a blue rinse. She wears her grey hair with pride. Some have already hailed her as the “grandma of the dollar”. But still waters run deep. At home, she does the housework and bows down to her husband, also an economist and 2001 Nobel prize-winner, George Akerlof. Outside of the home, however, she wears the trousers. She is omnipotent. Her decisions cannot be censured or subject to compromise. Not even the president of the United States can oppose her. The worst he can do is fire her. Together with her husband, she has written a famous book in which she demonstrated that it is ITALIAN VALUE

not true that the market will necessarily sort itself out, thanks to a kind of involuntary divine intervention. We need ethics. We need politics. Sometimes to invest money, to take care of policies that generate employment rather than fatten banks. She is, in fact, against the theories of banks and managers who think they are “too big to fall”. It is humanity which is too big and too important to be submitted to the excessive power of finance.

In this sense, she is a woman. Like Lagarde. This is why it is a good thing that finance is female. And that it becomes a tool for development and a guarantee for the future as it was originally, before it was transformed into a balloon and made to explode above us by those madmen who believed they had found the philosopher’s stone of wealth without work. The opposite of the female quality, which gives solidity, finesse and preciousness to all life, including finance. \\\\\ FEBRUARY 2014

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SOUTH-EAST ASIA ECONOMIC OUTLOOK

RESTARTING FROM THE EAST

Besides China and India, other economies are growing, too. As a matter of fact, there are many opportunities that Southeast Asian countries can offer to Italian enterprises

↑ An overview of Singapore

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FEBRUARY 2014

Request of consumer goods of new emerging markets (% average annual change in imports, 2013-2015)

Food

Furniture

Fashion

Tiles

Thailand

8.4

5.0

8.0

5.1

Indonesia

11.0

3.1

16.6

18.2

Philippines

8.8

4.0

16.9

2.5

Vietnam

9.4

3.6

22.6

19.8 Source: Prometeia and ITA

uropean enterprises focus on Southeast Asian markets in order to boost their economy, trying to enter previously unexplored countries of this vast region, such as Myanmar and the Philippines. In mid-November, new European missions left for Vietnam, Myanmar and Thailand led by Antonio Tajani, Vice-President of the EU Commission, who deals with matters concerning industry, entrepreneurship and tourism. About one hundred enterprises, associations and European realities, of which ďŹ fteen are Italian, left with him and have explored the area for new business opportunities.

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VIETNAM Europe is the second trading partner of Vietnam, after China, with a deďŹ cit rated over 13,000 million euro in 2012.

The majority of European exports to Vietnam consists of machinery and electrical equipment (22.3%), vehicles

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and means of transport (20.9%). Vietnamese exports to Europe, besides agricultural products, include footwear and clothing products (11.5%). In June 2012, the EU and Vietnam started negotiations for a Free Trade Agreement, which is still in progress.

MYANMAR Ex-Burma, after decades of isolation, today represents a great opportunity for Western enterprises and in particular for the European ones: it is situated in a strategic position among South-East Asia, China and the Indian subcontinent. This country is the privileged access point to a potential market of 2,000 million consumers. It is necessary to remember that this is still the poorest country of the region, but its economy is expected to grow at a rate of 6.8% this year. It is a good perspective if compared to the rate of 5.5% in 2012, characterized by an increment of 60% in EU exports compared to 2011.

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43,000 Million $ The amount of infrastructure investments planned until 2020 by the Thai Government

Bangkok is the capital and largest urban area of Thailand

+6.8% GDP Myanmar’s expected GDP growth rate in 2013

THAILAND The potential of this market, one of the most advanced economies in the ASEAN (Association of Southeast Asian Nations) area, has not been fully exploited yet. In 2012, trading between European countries and Bangkok amounted to 32,000 million euro, placing the EU as the third trading partner after China and Japan. This country needs investments in the energy and construction sector, in which many European enterprises are world leaders with cutting-edge technologies. The local consumption of high-end and luxury products is growing, too. Last November 7th the country signed a partnership and cooperation agreement with the EU, which will be put beside the future Free Trade Agreement for which negotiations were started last March.

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INDONESIA In 2012, the third most populous democracy in the world, after India and the U.S., maintained an average GDP growth rate of 6.4%. According to the Indonesia Investment Coordinating Board (BKPM), foreign investments in Indonesia have increased from $10.8 million in 2009 to $18.9 million in 2011 and, only in the first half of 2012, they have doubled the entire amount achieved in the previous year. However, these data hide an important weakness, the lack of infrastructures, which, by the way, Indonesia is working to improve.

SINGAPORE Organic or printed electronics, as well as bioelectronics and safety devices, represent the emerging growth areas of the plastic sector in Singapore. According to the Economic Development Board (EDB), printed electronics already represent 10% of the overall national production of electronic items and by 2020 are expected to increase by 30%, in comparison with the global market. \\\\\ NICOLÒ MULAS MARCELLO

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SOUTH-EAST ASIA GIOVANNI SALINARO

THE OPPORTUNITIES OF THE FAR EAST

The economic crisis has not spared even the Eastern countries.

And the decrease in Western investments has, though only slightly, slowed the growth of emerging economies

he decrease in demand for goods and services from developed countries has had repercussions on all those economies that have commercial links with Western countries, in particular those countries which depend on export. South-East Asia has also suffered a slowdown in growth, linked to the financial crisis of developed countries. In some cases, the link has been direct (Asian countries that market directly in the West), in others indirect (due to the domino effect caused by the slowing of Asia’s top dogs: India and China). “The geographical area of South-East Asia has the most sustained growth dynamics. Furthermore, it has reacted to the decrease in demand by advanced countries by increasing inter-regional (within Asia) commercial exchange. The effect of the global crisis has also been felt in terms of fewer foreign investments in these countries, despite noteworthy exceptions (such as in Indonesia or the Philippines) which are showing a growth trend”, explains Giovanni Salinaro, analyst of the SACE Group for the Asian and Pacific markets (a company that offers export credit, credit insurance, protection of investments abroad, financial guarantees, deposits and factoring services).

Indonesia is one of this area’s most promising countries for the “Made in Italy” brand. What does this trend depend on and in which sectors can the “Made in Italy” brand find the most opportunities?

“Recently, Indonesia has grown impres-

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20 million Dollars The flow of foreign investments towards Indonesia in 2011

↑ An overview of Manila, the capital of the Republic of the Philippines

← Giovanni Salinaro, Asia and Pacific markets analyst for SACE

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← Yangon, also known as Rangoon, the former capital of Myanmar and the largest city in the country

AMONG THOSE MARKETS WHICH ARE STILL PARTIALLY UNEXPLORED BY ITALIAN ENTREPRENEURS BUT WHICH ARE VERY PROMISING ARE THE PHILIPPINES AND MYANMAR sively, also thanks to the natural resources at its disposal.

It registered a record flow of foreign investors in 2011 (approximately 20,000 million dollars) aimed mainly at the mining and infrastructure sectors. It is the fourth most populated country in the world (approximately 250 million people) with a relatively low average age. Furthermore, being a country in rapid growth, it requires notable investments both to develop its insufficient infrastructure as well as to improve the effectiveness and productivity of its manufacturing sector (which represents approximately 25% of the national GIP). In this context, structural mechanics – a sector of Italian excellence – can satisfy the needs of rapid industrialisation while consumer goods can focus on the expansion of the Indonesian middle class which today accounts for around 130 million people.”

Which other countries in the Asian area offer investment opportunities to Italian entrepreneurs?

“The Philippines and Myanmar. The Philippines archipelago today registers both the highest level of growth in South-East Asia and fairly robust economic basics. It is an economy based on internal demand (especially private consumption which represents around 70% of the GIP) and with a cheap and numerous, young and educated work 60

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force (English is widely spoken and, together with India, it is the main recipient of investments in Business Process Outsourcing, given the distribution of IT services). The development of the manufacturing industry and residential construction offers opportunities to Italian businesses.

Myanmar, on the other hand, is a country that is just emerging from a 60 year long international isolation. After the cancellation of sanctions by the EU, it is slowly opening its doors to the international community. Foreign investors are very interested in this country, given the wide availability of natural resources (oil and gas, hydro-electric energy, precious minerals), though there is a great need for investments in the sector of basic infrastructure.”

Finally, what risk factors may these markets hide?

“Often regulations are unclear, corruption is widespread and bureaucracy blocks investments. We should not forget, either, the frequent natural catastrophes that cause considerable damage to the productive systems of this area. Some countries may be considered safer, in that they have more mature economies, for example Thailand, Singapore and Malaysia. Others are particularly risky, such as Myanmar, Laos and Cambodia.” \\\\\ NMM FEBRUARY 2014

SOUTH-EAST ASIA GIOVANNI CAPANNELLI

INVESTMENT OPPORTUNITIES The economic development of East Asian countries, despite the current global economic crisis, represents a great opportunity for Italian enterprises sia has been significantly affected by the economic crisis but the negative effects are relatively low when compared to those suffered by Western countries. According to the Asian Development Bank (ADB), although GDP growth has dramatically slowed down, the economy of Asia grew more than 6% in 2008 and around 5% in 2009. In 2010, GDP growth reached +9%, then decreased to 7.3% in 2011 and to 6.1% in 2013. ADB estimates that Southeast Asia – excluding Japan, whose economy has been growing steadily – will achieve an economic growth of 6.2% this year.

Giovanni Capannelli, Principal Economist and Special Adviser to the Dean at ADB Institute in Tokyo, explains that “the economic systems of the countries of Southeast Asia are very open to trade and in recent decades have been growing mainly thanks to exports. Therefore, the first negative effects of the global economic crisis on Asian countries have occurred through the trade channel.”

Has the economic crisis in Asia hit mainly exports?

“In 2009 Asian exports collapsed leading to a negative growth of GDP in Singapore, Hong Kong, Taiwan, Malaysia and Thailand, whose export ratios compared to GDP are very high, exceeding 100% in every country. In other Asian countries, excluding Japan, there was a positive economic growth in 2009. GDP grew at a rate of 8.7%

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in China, 7.2% in India and 4.5% in Indonesia. Exports suddenly decreased due to the collapse in demand from Western countries. A recent ADB study showed that, although the rate of trade exchange among East Asian countries is around 55%, thanks to the high trade share of intermediate goods, about 70% of the demand for final goods produced in Asia comes from the U.S. and Europe.”

↑ Giovanni Capannelli, Principal Economist and Special Adviser of the Dean at ADB Institute in Tokyo

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SOUTH-EAST ASIA GIOVANNI CAPANNELLI

What other aspects were affected by the crisis in Asia?

“After trade, the second sector affected by the crisis in Asia has been the financial one. Cash and cash equivalents have been lacking and the central banks of South Korea, Indonesia and Singapore had to resort to bilateral swap agreements with the Federal Reserve, swapping local currencies against the U.S. dollar. It has to be said that when the crisis broke out, the Asian countries had quite strong macroeconomic positions due to the policies introduced after the financial crisis that hit this area in 1997/98. In fact, in order to face that financial crisis, East Asian countries implemented a series of structural reforms that helped them to improve their economic and financial systems and to face the crisis from relatively strong positions, including fiscal variables, nonperforming loans and other macro-prudential indicators.”

Can you do a brief overview of investment flows between Italy and Asia in recent years?

“Italian enterprises have a significant potential to in-

crease their presence in Asia. In fact, data from the Italian Trade Agency (ICE) show that only 8-9% of the 27,000 foreign enterprises owning Italian shares, in existence at the end of 2011, were located in Asia. Although in recent years the flow of investments from Italy to Asia has grown significantly, rising from €90 million in 2000 to €2,600 million in 2011, we need to do even better. China is the first country in which Italian enterprises invest.

For the flow of direct investments from Asia to Italy, however, Japan does the lion's share, with 70% of the total, followed by China and Hong Kong.”

At present, what are the countries of Southeast Asia that can offer important opportunities for trade relations to Italy?

“The economy of Asia is mainly based on production networks that assemble components imported from other countries to produce the final goods. Typical examples of these networks can be found in the electronics, automotive and machinery sectors. China is the country with the highest concentration of assembling en-

AFTER TRADE, THE SECOND SECTOR AFFECTED

BY THE CRISIS IN ASIA HAS BEEN THE FINANCIAL ONE 62

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70%

Demand The percentage of the demand for final goods produced in Asia that comes from the U.S. and Europe

€600 m

Products Investment flow from Italy to Asia in 2011

www.adbi.org

THE ASIAN ECONOMY IS MAINLY BASED ON PRODUCTION NETWORKS THAT ASSEMBLE COMPONENTS IMPORTED FROM OTHER COUNTRIES, NOT PRODUCED IN ASIA, TO PRODUCE THE FINAL GOODS terprises. Thailand and Malaysia play important roles in the automotive and electronic sectors, respectively. Indonesia and the Philippines are emerging as producers of specific electrical components, while Vietnam, thanks to its relatively low cost of labour, is starting to produce parts and components that require high labour input.

Among the other countries that are particularly interesting for Italy, it is worth mentioning Myanmar where, if public and private initiatives were implemented, it would be possible to benefit from the fervour that pervades this country.”

Finally, what are the risk factors that these countries may hide?

“In recent years, the political stability of these countries has been threatened by growing tensions caused by territorial disputes and ethnic or religious conflicts. As for economic matters, other risk factors are related to the possible economic slowdown in the EU and the U.S. and ITALIAN VALUE

the possible changes in capital flows caused by the shortterm monetary policies launched by the U.S., the UK and Japan. Besides, natural disasters which, unfortunately, occur more and more frequently in Asia, may have significant consequences on its economy. Moreover, China has just started implementing a series of economic reforms that are expected to strengthen its domestic economy significantly and maintain growth rates high. However, some tensions between the political system, the business system and the new working and management classes could still arise. Finally, although Abenomics (the macroeconomic initiatives implemented by the Japanese government in the spring of 2013 in order to revive Japan’s economy after decades of depression) is currently leading to unexpected results, Japan may enter a new phase of depression as a result of the increase of the consumption tax, which is expected to increase from 5% to 8% next April, and to 10% in 2015.” \\\\\ NMM FEBRUARY 2014

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INDIA ECONOMIC OUTLOOK

A DYNAMIC MARKET An important attraction hub for production investments and great propensity for relations with foreign countries: this is India, with opportunities and risks

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TRADE TRENDS ITALY-INDIA Value in Billion Euro (January-October 2013)

2012

2013

Exports

Imports

3,500 3,000 2,500 2,000 1,500 1,000 500 0

Source: ITA on ISTAT data

New Delhi, the capital of India, is the second most populous city after Bombay

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ith a population of over one billion people and a considerable GDP growth rate (+8.6% in 2010, +8.8% in 2011), which experienced a slowdown only in the years 2012-2013 (+3.3%), and thanks to its propensity for international investments, India is one of the most dynamic economies in the world. The local government, since the '90s, has been promoting the country’s economic growth by focusing on foreign investments and applying appropriate measures to make national growth more sustainable and to keep its economy’s appeal strong: the liberalisation of economic policies has led to a reduction of state control on imports and investments and to a growth of incoming capital flows. India’s strength is represented by the service sector, in particular IT and outsourcing. The furniture-design sector is a promising market, confirmed also by the entry of IKEA, an industrial giant, into the country.

Italy is India’s fifth commercial partner among EU countries, after Germany, Belgium, Great Britain and France. Italian exports to India decreased by 10% during 2012, along with imports from India, which have diminished by 21%. The “Enrica Lexie” case has sparked great concern in thousands of Italian entrepreneurs who have economic relations with India and it aroused suspicion in people about a possible diplomatic and commercial crisis.

Mechanical engineering is the main sector for Italian exports, while India’s imports are mainly textile and fashion products, representing almost one third of total imports.

There are about 400 Italian enterprises in India, including registered offices and plants, whose main geographic areas of settlement are the industrial hubs of Delhi, Gurgaon, Noida and Pune. Italian investments in India are basically directed towards the service sector, with particular emphasis on transport, consultancy, and finance, as well as the automotive industry. Among the major Italian groups in India there are Fiat, Ferrero, Perfetti Van Melle, Lavazza, Piaggio, Prysmian, Maire Tecnimont, Techint, Luxottica, Assicurazioni Generali, Danieli, Brembo, Finmeccanica, and StMicroelectronics. \\\\\ RENATA GUALTIERI

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INDIA DANIELE MANCINI

ITALIANS REDISCOVER INDIA Daniele Mancini, the Italian Ambassador in New Delhi, reveals the opportunities our enterprises may have in a market with great potential such as the Indian one

nterprises that do not look into emerging markets keep living in the past and can hardly meet the challenges of this new millennium. India, despite its complexity and its difficult business context, still remains a country on which to bet. “Our European and non-European competitors are well aware of this and they are preparing rather aggressive promotional policies in India, with a great commitment of resources” commented Ambassador Daniele Mancini, while reflecting on the investment risks and opportunities regarding this market.

This because India, besides being a market of 1,200 million people, with a growing middle class and lifestyle habits that are becoming more westernised, also serves as a production hub for South Asia, due to the availability of a low cost workforce and of a good network of free trade agreements with its neighbouring countries.

The challenges presented by the current situation in both countries are many. How should they be

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faced? What are the perspectives of the Indian economy and in what way will the Embassy support the Italian enterprises operating in India?

“The interchange between Italy and India decreased from 8,500 million euros in 2011 to 7,100 million euros in 2012 and has continued to diminish in the first eight months of 2013. The reasons can be found not only in the case of the “Enrica Lexie” ship and of the two Italian marines, which led to the virtual freezing of institutional relations between the two countries, but also in domestic factors that have caused a slowdown in the Indian economy.

However, India still remains a country with great potential and with open spaces as a “rising economy”. Besides any potential critical situation, Italian enterprises should think in a medium-long term perspective, because in these timeframes India will definitely be growing. Italian enterprises in India can benefit from the support of a fully specialised institutional system, which includes not only the Embassy and the two Consulates in Mumbai and CalFEBRUARY 2014

7,100

Million euro The interchange between Italy and India in 2012 has decreased in comparison to 8,500 million euro in 2011

cutta, but also two ITA offices, six offices of the Indo-Italian Chamber of Commerce, the presence of the Italian Tourism Board (ENIT) and of the Italian Export Credit Agency (SACE) in Mumbai.”

In the Indian commercial panorama, what is the current visibility level of Italian enterprises? And in which sectors are Italian productions more likely to succeed?

“Some Italian enterprises, such as Fiat and Piaggio, have been pioneers in this market since the '60s. Fiat 1100 and Vespa, as well as Lambretta, are still considered icons in this country and Indians look favourably on Italy and Italian products. Today, there are more than 400 Italian enterprises that are present and stable on this market, including almost all the big players. Now the challenge is to bring in medium-size companies, which have fewer resources and scouting abilities, and for this reason they need the support of institutions and trade associations. As for the sectors, in

↑ Daniele Mancini, Italian Ambassador in New Delhi

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addition to the traditional ones – automotive and auto components, machinery and food – businesses need to focus on new strategic sectors: renewable energy, infrastructure and the construction industry, food processing, water and waste treatment and nanotechnology.”

In what way does the Embassy in New Delhi promote interaction with the Italian enterprises on this market?

“In the first eleven months of my mandate I have personally visited many Italian enterprises which have set up here and I have accomplished more than 25 missions in the Indian territory with the support of other Italian institutions in India.”

Last September 10th at the Italian Embassy in New Delhi an event dedicated to Italy took place. What ideas emerged during that meeting?

“It was an opportunity to elaborate strategic guidelines for future collaborations between the two countries. It emerged that we need to rediscover India by using a new lens, with the ability to predict new trends in the Indian demand, new strategic sectors and the possible urbanisation processes which will lead to the growth of secondand third-level Indian cities. In order to make the difference, it will be necessary to act as a coordinated system and simultaneously use the three levers closely interrelated with promotion: the economic-commercial lever, the cultural lever and the scientific-university cooperation lever.” \\\\\ RENATA GUALTIERI FEBRUARY 2014

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UNDER THE CRESCENT SYMBOL

An outpost of the Western world for everything that was beyond the Bosphorus Strait, even today Turkey demonstrates its strong bond with Europe, and in particular with Italy ↑ An overview of Istanbul

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TURKEY ECONOMIC OUTLOOK

Top Destination of Turkey Exports in 2012

Turkey’s Major Import Destinations in 2012 9%

8.6% 11.3%

Germany

7.1%

Germany

Russia

9%

Iraq

China

6.5%

6%

Iran

Italy

4% 73.8% Other countries

64.7% Other countries

Other countries (73.8%)

Other countries (64.7%)

1) Germany (8.6%)

1) Russia (11.3%)

2) Iraq (7.1%)

2) Germany (9%)

3) Iran (6.5%)

3) China (9%)

7) Italy (4%)

5) Italy (6%)

DP tripled from $231,000 million to $772,000 million between 2002 and 2011, numerous and extremely young population, favourable business environment. These are the features that make Turkey one of the best commercial and economic partners, not only for our country. A vocation built up over the centuries, which has turned into tradition thanks to the geographical position of the country which makes it a natural bridge between the East and the West.

Italy is still located among the top main trading partners with Turkey (with an interchange record level reached in 2011 of $21,300 million and an excellent result in 2012 of about $20,000 million). In particular, in 2012, the balance between imports and exports recorded a surplus of $7,000 million in

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Source: Italian Embassy in Turkey database

Italy

favour of Italy.

Although since 1996 a customs union between Turkey and the European Union, helping the EU to become the first commercial partner of the country, has been in force, as far as investments are concerned the crisis in the Eurozone has been felt here.

The flow of Italian investments, however, registered a steady growth in 2011 and 2012, with over a thousand enterprises owning Italian shares.

In the field of public procurements and investments, Italy represents a key partner in strategic sectors, especially in the fields of construction, transport, energy and mechanics. In recent years Italy has also finally achieved excellent results in the sale of banking products, textiles and clothing items, food products, appliances, furniture and chemicals. \\\\\ TERESA BELLEMO

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TURKEY GIANPAOLO SCARANTE

CONQUERING THE YOUNG TURKS

Promoting Italian excellences, supporting Italian enterprises and attracting investments to Italy: these are the three pillars of Italian diplomatic action in Turkey

taly is Turkey’s fourth commercial partner, with an annual interchange of about 20,000 million dollars. Here there are more than one thousand enterprises with Italian capital, which often need a valid institutional partner that supports them in their entrepreneurial activity. The Italian Embassy enjoys relations with the local government, acts in order to support Italian companies and coordinates the different local institutions (Consular network, ICE (Italian Institute for Foreign Trade), SACE (Italian Export Credit Agency), Banca d’Italia, Bilateral Chambers of Commerce, Italian cultural institutes and business associations). In this context, it is fundamental to ensure systematic information on business opportunities and tenders, as well as to promote actions aimed at protecting our companies’

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↑ Gianpaolo Scarante, Italian Ambassador in Turkey

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interests, both from legislative and bureaucratic standpoints. Gianpaolo Scarante, Italian Ambassador in Turkey, explains the new plans for 2014. “We would like to focus on attracting new Turkish investments to Italy and developing partnerships between national and local enterprises”. Therefore, the goal is to support Italian companies but also to provide Turkish institutions and local businesses with an overview of Italian excellences, so as to create a favourable base for the development and strengthening of bilateral relations between the two countries.

Italian investors find the Turkish market very interesting. Why? “Our enterprises are looking at this market because Turkey is one of the countries with the highest growth rate in the world - it has tripled its GDP in the last decade - and it has a population of about 80 million people, young (almost half the population is under 30), dynamic and educated. The economic performances of Turkish consumers are constantly growing and the latter are more and more attracted by high-end products. The excellence of Italian products, therefore, is much appreciated: for instance, the agri-food chain Eataly is about to FEBRUARY 2014

THE TURKISH LIRA IS CHARACTERISED BY VOLATILITY AND THE COUNTRY, EVEN RECENTLY, HAS EXPERIENCED INFLATIONARY SPIRALS open in Istanbul and numerous Italian brands have inaugurated new shops and increased their presence in shopping malls. As far as production is concerned, the Turkish industry needs Italian machinery and products. Finally, we should keep in mind that Turkey has connections with Asia and the Middle East which give access to about 1,500 million people”.

What would you suggest to Italian entrepreneurs wishing to invest in Turkey?

“I always recommend looking at this country with trust because in recent years many advances have been made. In Turkey, six days are enough to establish a business. The recently-issued Commercial Code has greatly improved the procedures of corporate governance. Lastly, the Turkish government has created a system of benefits which provides tax breaks and subsidies for a wide range of investments.

This efficient network can offer concrete support to our enterprises, since it is made up of the main Italian banks and ITALIAN VALUE

numerous law and consulting firms which have gained a lot of experience in the local market”.

We have talked about benefits. But are there possible risks for foreign investors?

“Some of the main risks are linked to the country’s macroeconomic conditions. The Turkish lira is characterised by volatility and the country, even recently, has experienced inflationary spirals, often due to the increase in the prices of imported goods. Furthermore, underground economies and infringement of intellectual property are quite common phenomena. As for operational risks, despite the fact that since 1996 a Customs Union has been in force between Turkey and the European Union, there are still some strict procedures which could make exchanges more difficult and expensive. Having said that, the Turkish government is working to reduce bureaucracy costs and speed up the resolution of legal disputes.” \\\\\ TERESA BELLEMO FEBRUARY 2014

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TURKEY NICOLA LONGO DENTE

THE TURKISH MARKET OPPORTUNITIES For those Italian enterprises jooking to enter the Turkish market, it is essential to have a partner who can support them with investments. The point of view of Nicola Longo Dente, who works at the Turkish bank Yapi Kredi urkey is a very vibrant and dynamic market that has been offering tremendous opportunities to Italian enterprises for quite some time. Yapi Kredi is the fifth largest bank by assets in Turkey and the fourth among private banks. It operates throughout Turkey with more than 900 branches and it has nearly ten million customers. It is a subsidiary of a holding company formed by the Italian bank Unicredit and the Turkish Koc Group in a joint venture (50/50). Yapi Kredi is one of the leading players in the market and is specialised in cross-border funding intended for industrial investments of any size. Nicola Longo Dente, Head of International & Multinational Relations at Yapi Kredi, points out the most profitable Turkish sectors for Italian enterprises. “Italian enterprises can benefit from the best opportunities in those sectors in which high-quality Italian products can compete evenly with major international and local groups.”

In which sectors is the Turkish economy more vibrant?

"In recent years Turkey has invested a lot in infrastructures and in the diversification of energy sources in order to reduce its dependence on oil and gas imports.

Turkey intends to invest more than $65,000 million through project financing operations over the next five years. The real estate industry is particular dynamic in the main cities of the country.”

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↗ Nicola Longo Dente, Head of International & Multinational Relations at the Turkish bank Yapi Kredi

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How does Yapi Kredi help Italian enterprises to enter the Turkish market?

"We are in constant dialogue with those enterprises. For example, we organise seminars and one-to-one meetings both in Italy and in Turkey. In addition to this, we maintain relationships with the Italian Chambers of Commerce abroad and with consulting enterprises that offer support services for internationalisation and the search for partners. For the Italian enterprises looking to enter the Turkish market, we offer banking products and advisory services, as well as legal, administrative, fiscal, strategic and commercial support. Yapi Kredi has relationships with over 9 million customers and a partnership with the Koc Group, the largest Turkish banking conglomerate.”

On the other hand, how do you help Turkish enterprises?

"Our Turkish clients who are partners with Italian enterprises are steadily increasing. In fact, Turkish enterprises are more and more aware of the strategic value FEBRUARY 2014

TURKEY INTENDS TO INVEST MORE THAN $ 65,000 MILLION THROUGH PROJECT FINANCING OPERATIONS OVER THE NEXT FIVE YEARS

STRATEGIC PARTNERSHIPS Due to their geographical proximity to Italy, the Mediterranean countries represent an opportunity for Italian companies to exploit

a partnership with a local but at the same time international bank may have.”

What are the main differences between the Italian and the Turkish tax systems?

"In Turkey the corporate tax rate is 20%, to which the 15% withholding tax on the distribution of dividends has to be added.

The VAT tax is currently 18%. Furthermore, enterprises can benefit from incentive packages for investors that are more or less profitable, depending on the area of the country, and that offer substantial tax savings. Moreover, income taxes are in the range of 15% to 35%, depending on individual income.”

Is relocation more convenient then?

"Tax advantages are not to be considered only in order to relocate production. In fact, investing in Turkey means entering a new market of over 76 million inhabitants, with a rapidly expanding middle class, whose average age is 29.

In addition, entering the Turkish market helps to have access to those markets, such as Azerbaijan and other countries in the Middle East, which would be difficult to enter from Italy.” \\\\\ TERESA BELLEMO ITALIAN VALUE

oday more than ever, it is vital to leave the internal market and promote economic and diplomatic relations with foreign countries.

The vision must, however, be global: not stopping at economics, but also taking into account politics and culture. This is the mission of the Italian institute for Asia and the Mediterranean (Isiamed). Founded in 1974, today Isiamed works in close contact with Italian embassies in numerous countries throughout Asia and the Mediterranean. Active collaborations are in progress with Egypt, Pakistan, Iran, Uzbekistan, Tunisia, Algeria and Turkey. Regarding the Turkish partnership, Gian Guido Folloni, president of the Institute, has a very positive opinion: “We are talking about a stable and reliable nation, with an enviable growth rate. And it is, furthermore, an ideal partner for Italy, who shares its vision of expansion towards the Mediterranean and the Orient.”

What are the main sectors of contact between Italy and Turkey?

“In 2013, there were numerous initiatives with Turkey in mind which explored almost all the sectors of the bilateral partnership. Tourism is certainly one of the most important ones, a field in which Turkey has taken on a leading role.

In manufacture, Isiamed has discovered particular interest in the sectors of renewable energy, the environment, plas-

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TURKEY GIAN GUIDO FOLLONI

4

The entrepreneurial missions promoted

by Isiamed in Turkey in 2013 in the sectors of tourism, the food industry, logistics and manufacturing

tics, cosmetics, and the marble and ceramics industries.

There is also a lot of interest in logistics and the food industry supply chain. Nonetheless, my impression is that there is no sector in which the cooperation between Italy and Turkey cannot but be of reciprocal benefit.”

What are the results of the four entrepreneurial missions in Turkey carried out in 2013?

“The missions took place between April and June. One was dedicated to tourism, a second in collaboration with the Chambers of Industry of Istanbul, and the third with the Deik Foreign Economic Relation Board. Finally, the last one brought six representatives of Bologna’s Agro-Food Trade Centre (CAAB) to Mersin and Antalya, in the south of Turkey. Besides the result that individual economic realities have been able to expand, I think it is important to mention also those of the follow up: a workshop on the logistical passage which would lead to the CAAB of Bologna becoming the Italian hub for sorting fruit and vegetable products from Turkey and France. Furthermore, there was the Turkish ambassador to Italy, Hakki Akil’s visit to Trieste for the “International business cooperation Friuli Venezia Giulia – Turkey” meeting. The aim is to create a new cooperation strategy in the fields of boating, maritime transport and logistics.”

↗ Gian Guido Folloni, president of the Isiamed Institute

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What are the main similarities between the Turkish market and the Italian one?

“Italy and Turkey feature many common aspects and many others in which they complement each other – all useful for operating on the most varied range of markets. For example, in the Mediterranean, where the EU’s inter-exchange with North Africa has more than doubled in the last ten years, Italy is on top. There are different outlets for Italian and Turkish exports in North Africa (160 million inhabitants) meaning that there should not be any direct competition between the two countries. In fact, Italy seems more concentrated on mechanics and Turkey on metallurgy. We could explore the possibilities of joint investment and commercial partnerships between Italy and Turkey, especially in the sectors of construction and mechanics in Libya and textiles in Morocco and Tunisia. Furthermore, Turkey is particularly strong in the Middle East (230 million inhabitants). And this is why we have found further possibilities of mutual cooperation in the sectors of construction, specialised mechanics, scientific collaboration and research.” \\\\\ TERESA BELLEMO FEBRUARY 2014

AGRI-FOOD INDUSTRY MARIO GUIDI

EXPORTS STIMULATE THE AGRICULTURAL SECTOR To face up to the challenges of Europe and international markets, we need to relaunch the agricultural sector – which depends almost exclusively on exports ne Italian food product out of five is sold abroad; almost 40% of food companies are already active on the international markets. Food exports in 2013 registered a turnover of 27,000 million euro, with an increase of 6.5% in 2012. Italian produce is exported everywhere: 62.5% in Europe, 10.6% in the USA, 1.8% in Latin America, 1.5% in Australia, 1.7% in the Middle East, 5.3% in Asia, 0.7% in South-East Asia (data 2013 Federalimentare). Sector analysis shows a growth of 6% in hams and cold cuts, 4% in pasta, sweets, frozen goods and ready foods and 20% in Parmesan cheese and dairy products.

These promising results of Italian agriculture on the foreign markets are encouraging the main Italian sector towards further competitiveness. Pressing for this upturn is Mario Guidi, president of Confagricoltura who, doing the maths of the past year, highlights the action necessary if the national agri-

O

cultural system wishes to grow in terms of income, employment and investments. According to the leader of the organisation of agricultural entrepreneurs, we should intervene not only to strengthen the internationalisation processes, but also to carry out a decided increase in research and innovation, through higher coordination of European policies. “The decidedly positive data for export in 2013 has led us to believe that the economy already started picking up that same year.

This means that our companies need to be increasingly capable of promoting themselves globally; we need to find more opportunities for oriented business relations with foreign operators and enter the network, thus increasing competitive ability in terms of volume, services and promotion capacity,” Mario Guidi explained.

Italian food products are conquering foreign countries more and more. Where can we intervene to increase exports even further: commercial agreements, more effective measures against agricultural piracy?

“Despite the crisis, food industry exports are on the up. In the first ten months of 2013, agricultural exports increased 3.4% compared to the previous year. To continue in this direction, we certainly need more effective measures in combating agricultural piracy. And if combating piracy is difficult, limiting the phenomenon of “Italian sounding” products is even more so. “Made

← Mario Guidi, president of Confagricoltura

↗ Domenico Zonin, president of UIV

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THE TOP 4 DESTINATION OF ITALIAN AGRI-FOOD PRODUCTS

ITALIAN WINE CONQUERS THE WORLD

(year 2012, million of euro)

Germany

France

U.S.

UK

4,500 4,000

DOMENICO ZONIN, PRESIDENT OF THE ITALIAN WINES UNION (UIV), HIGHLIGHTS THE PRIORITIES FOR VALORISING “MADE IN ITALY” WINE

3,500 3,000 2,500 2,000 1,500 1,000 500 0 Source: Federalimentare

in Italy” production is of strategic importance for the national economy, focussing as it does on quality and excellence which stimulate other sectors. Because of this, fraud not only damages Italy’s image, but also that of the entire economic system and agricultural businesses in particular. Furthermore, we need to focus even more on the internationalisation of our companies, create opportunities to meet, network, exchange knowledge, find new collaborations, and transfer know-how. As well as the products, we need to internationalise ideas, thoughts and systems. This is the true – positive – meaning of globalisa-

B

reaking into international markets is a priority for Italian wine production. Therefore, we need to deploy all the necessary tools in order

to favour wine exports, internally as well as regarding

European

policies

and

global

commercial

agreements. Without forgetting our competitors’ anti-dumping and protective measures. Keyword: promotion. The president of the most representative association of Italian wine-producers - with around 500 associates who cover 70% of the value of Italian wine exports – Domenico Zonin is convinced.

On the international level, what trends have our wines shown?

“It is a very positive scenario. Italian wine production, with its wealth of vineyards and land, has established itself on all the world’s markets as an excellent and valid alternative to the French hegemony which, until a few years ago, boasted undisputed leadership in international commerce.

This counts for both traditional countries of consumption, where lesser-known wines are coming into their own, as well as in the so-called emerging markets, where the reputation of great Italian wines is playing a valuable role in breaking down boundaries. All those labels promoting themselves with a strong territorial image or corporate brand are showing a general trend of growth. A shining example is

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77

60 billion

Euro The value of the fake “Made in Italy” abroad in 2013. Two out of three Italian agri-food products are fake

Prosecco - by now an established success – which is introducing the world to the excellence of Italian bubbles.”

What are the main problems - including those of international competition - facing Italian wine production today?

“Firstly, there are the so-called non-tariff barriers that are rife in many countries. These are protectionist devices – prohibitive duty tariffs, discriminatory treatment in customs and insufficient protection of our geographic indications – unilaterally taken on and which discriminate European wines, damaging our exports. Furthermore, in China, wine is held hostage to bilateral tensions and has become a victim of blackmail and unjustified anti-dumping investigations.”

What will UIV be concentrating on in the near future?

“We are working on many regulatory and productive matters, the resolution of which will also influence export in a positive way. On the European level, we will continue to urge the EU to conclude the various bilateral commercial agreements that are still open, as soon as possible.” FD 78

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tion. And agriculture can also play an important role in the global geopolitical equilibrium and in commercial agreements, such as the one recently drawn up with Canada or the one currently being defined with the USA.” Italian agriculture is keeping its doors open to Europe. Faced with the Common Agricultural Policy (CAP), what are the prospects?

“Agriculture plays a central role in European policies and must also do so in national ones. In the reform of community agricultural policies, a central role is given to the choices of individual countries. Therefore, we need to raise the level of attention not just regarding European negotiations, but also regarding national economic and agricultural policy. In Italy, this means 5,000 million euro a year, to combine with shrewd and functional public and private medium- and long-term strategies for the primary sector. What we ask for is the strategic programming which has been lacking and which has, in fact, caused the agricultural productive system to weaken, the exact opposite of what the CAP aims for. We need, therefore, to look towards Brussels, but also Rome and the regional policies of development plans.”

What do you think is essential for relaunching Italy’s agricultural sector?

“Right now, we need to launch a serious programme of agricultural and industrial policies made up of investments in research, infrastructure and innovation.” \\\\\ FD FEBRUARY 2014

AGRI-FOOD INDUSTRY RICCARDO RICCI CURBASTRO

DESIGNATION OF QUALITY Promoting the protected designations with information campaigns on the main markets, such as the USA and developing countries is the mission of FEDERDOC n international markets, Italian grapes and wines are worth almost 14,000 million euro per year, of which 3,500 million euro are from the production of wines with controlled designations.

The identification of these kinds of Italian wines is strictly connected to the area of origin and to production regulations, but today is more and more linked to environmental sustainability, too.

Valuing and communicating the distinctiveness of controlled-designation-of-origin Italian wines is an essential part of the development strategy of these products on international markets. FEDERDOC contributes to this work, since it is part of about 100 voluntary consortia for the protection of designations of origin. This Association, led by Riccardo Ricci Curbastro, today What does DOC, DOCG and IGT (Typical Geographical represents about 80% of the production of DOC (Con- Indication) Italian wines’ added value consist of today? trolled Designation of Origin) and DOCG (Guaranteed “The added value of our wines with a designation of oriand Controlled Designation of Origin) wines. gin is characterised by a set of factors: chemical-physical and organoleptic features, production methods, which come from an National production of wine protected age-old craft tradition far from by designation of origin (2011) mass production, and traceability 36.57% of products through an incomparaCommon and varietal wine ble control system. Italy, in fact, is of national total (hl. 16.281.264) the only country in the world to control each wine from the vineyard to the bottling, as a guarantee for the final consumer.”

Promotion, communication, innovation. What are the factors on which to focus when establishing oneself in the international wine industry?

“It is essential to focus on all three 32.98% 30.45% aspects to establish oneself on the Domestic production wines Domestic production wines markets. The promotion of our D.O.C.G./D.O.C. with geographical indication of national total (hl. 14.684.806) of national total (hl. 13.560.271) wines with a designation of origin Source: AGEA

O

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AGRI-FOOD INDUSTRY RICCARDO RICCI CURBASTRO

THE PROMOTION OF OUR WINE DESIGNATIONS IS ONE OF THE KEY ACTIONS TO INCREASE THEIR NOTORIETY is one of the key actions to be taken in order to increase their reputation and attract a greater number of market shares. Another action to be implemented concerns communication: conveying strong and consistent messages able to face the ever-increasing competition of foreign wines. The main goal to achieve is a stronger presence of wines with a designation of origin on the identified markets by enhancing their image among consumers and the media. In this way we try to consolidate the positions already gained and at the same time inform people about the traceability system we use to safeguard consumers.

Knowing and enhancing what already exists but also innovating this sector to meet the needs of increasingly demanding and aware consumers: this is the excellence of Italian wines.”

What markets are more receptive?

“We have received further appreciation of our products from the United States, where the growth in export volume is considerable. Positive results have been recor80

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ded also on the European market, especially in Germany and Scandinavia, where the growth has been evident.

China is one of the emerging markets on which to focus in the future: currently we have recorded an 11% increase, a figure that could grow since the potential of this market still needs to be developed.”

What does the Chinese affair of the anti-dumping investigation into European wines mean for this industry?

“Undoubtedly, the investigation carried out last July by the Chinese Government was a severe blow to the European wine industry, which has been accused of receiving State aids from the European Union. The risk wineries are running is not of little consequence: in the case of the dumping assessment, the increase in duties for direct exports to China means – in many cases – a forced renunciation of expansion into an emerging market. However, we are confident in a positive outcome of the matter.” \\\\\ FRANCESCA DRUIDI FEBRUARY 2014

AGRI-FOOD INDUSTRY PIETRO MIGLIACCIO

SIMPLICITY OF THE IDEAL DIET

To keep tabs on one’s health and physique, no sacrifice is needed. Just do some physical exercise and follow the Mediterranean diet, Italy’s pride, which UNESCO declared a World Heritage in 2007

← Pietro Migliaccio, President of the Food Science and Nutrition Society

ore often than not, our work schedules allow us only shor t breaks to grab a bite for lunch, which is often miserly and unbalanced. This often leads to bad eating habits that end up weighing on our body's system. In order to have a correct and balanced diet, we need to consume foods of vegetable origin such as cereals, pasta, beans, fresh fruits and vegetables, dairy products, meat (preferably white) and above all, fish. The fat consumed should preferably be olive oil, rich in antioxidants, and alcoholic drinks should be limited to wine, had in small quantities during the main meals. These are the principles of the Mediterranean Diet which UNESCO declared an Intangible World Heritage.

We spoke with Prof. Pietro Migliaccio, nutritionist and President of the Italian Society of Food Science and Nutrition.

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What are the false myths regarding the Mediterranean diet? Is there any eating habit we generally believe is correct but in reality is wrong in terms of nutrition?

“Diets, especially the hypo-caloric ones, have always aroused great interest and debates, but are often the causes of incorrect eating habits. For example, it is not true that fruits cannot be eaten at the end of a meal. They can be eaten whenever one desires except when otherwise recommended by a nutritionist. They often say that carbohydrates should be eaten at lunch and proteins at dinner, but it is not true that this system impedes weight gain or makes you lose weight. Each meal has to supply carbohydrates, proteins, fats, mineral salts, vitamins and fibre. Furthermore, that the hypothetic risks connected to the combined presence, within the same meal, of foods like pasta and meat – or fish or eggs or cheese - are nonexistent and absolutely devoid of scientific proof. At most, FEBRUARY 2014

the reasons may be traced to religious beliefs. Lastly, we need to stress that also pasta contains a percentage of proteins ranging from 11 to 16 percent.”

We often find ourselves going for quick lunch breaks. What dishes or snacks are the best?

“Always avoid meals based exclusively on yoghurt or fruit, since these are insufficient in terms of calories and nutrients. Those who consume a meal at the bar should opt for a toasted or not too filled up sandwich, preferably without sauces (for example rocket salad and air-cured beef, mozzarella cheese and tomato, or tuna with tomato). For those who have a longer break instead, an excellent choice is salad with tuna, eggs, chicken breast or prawns: this would be a balanced compromise between health, tastiness and practicality and would moreover, keep you full until the next meal. For those who go to canteens or bistros, second courses would be preferable, accompanied by side dishes of vegetables and a small piece of bread.

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In line with the seasons, once in a while a meal could be replaced by homemade ice-cream even with two or three wafers.”

If one wishes to try some ethnic speciality, which cuisine complies most to the balanced nutritional values?

“Greek cuisine is surely one that closely resembles the Mediterranean diet. Above all, the main seasoning is extra-virgin olive oil, a source of liposoluble vitamins like Vit. A and E, which combat free radicals. In the isles and along the Greek coasts, fish prevails. The Greek habit is not to eat the first course, this is why Greek salads are very popular, and consist of black olives, pickles, anchovies, salami, spring rolls of rice or minced meat. Also renowned are the famous tzatziki sauces and the suvlaki meat splits. Finally, moussaka is quite highly calorific, like our aubergine parmesan dish.” \\\\\ TERESA BELLEMO FEBRUARY 2014

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AGRI-FOOD INDUSTRY ANDREA FERRAIOLI

THE EXTREME WINES OF THE AMALFI COAST

© Photo Bruno Bruchi

Best of Class Award Limited Production. Wines of the World Competition.

Awards for wines belonging to an extreme land.

Andrea Ferraioli speaking

↑ Andrea Ferraioli, with his wife Marisa Cuomo and their children, owner of Marisa Cuomo wineries in Furore (Salerno, Southern Italy). Photo by Bruno Bruchi 84

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n enclave in the enclave. A unique geomorphological anomaly in the small town of Furore, in the province of Salerno, Campania region. Ridges of rock which, since time immemorial, have been exploited over the centuries by man, who has used these resources for his livelihood. All this has made the rocky ridges fertile on this cliff rising up from the fjord, with a 50% inclination, up to 650 metres above sea level.

“This is an extreme land. And it produces extreme wines, winners of the Best of Class Award Limited Production and Wines of the World Competition" declares Andrea Ferraioli of the winery Marisa Cuomo. "Everything we do here is unimaginable elsewhere. It is a complex land from a geomorphological point of view. The soil, washed up from the sea, is dolomitic-calcareous. For this reason it has a salty composition, enriched over the centuries by the eruptions of Vesuvius (with ash and lapilli), which gives our wines unique organoleptic features. That is why these wines have had easy access to high-class restaurants in the United States, in particular in the State of New York and later on in California. At the same time, also the Japanese market has opened up. Today we export 25% of our production, or about 26,000 bottles.”

The inhabitants of Furore, over the centuries, had to invent areas for cultivation. Starting from the 5th - 7th centuries A.D., they began to build dry-stone walls, the socalled "macere" or "macerine", reaching even four metres high. But this was not enough. The ridges were poor in soil and, therefore, were supplemented by using the topsoil that rainwater swept down to the valleys towards the sea and which was collected by men and brought back up to the ridges.

The greatest wine of Marisa Cuomo is the award-winning Furore Bianco Fiorduva, whose name refers to Fiordo di Furore, another local uniqueness. “All our wines are made exclusively from historic "native" vines cultivated in this area, which boasts over 42 varieties, mainly white grapes, and which from 1994 to 1998 were subjected to a thorough study

by Luigi Moio, full professor of Enology at the university Federico II of Naples”. Fiorduva originates from Fenile, Ginestra and Ripoli wines, whose combination yields a

A

FEBRUARY 2014

FIORDUVA IS A STRONG YELLOW COLOURED WINE WITH GOLDEN HUES

strong yellow-coloured wine with golden hues. A fragrance reminiscent of apricots and broom flowers, with hints of exotic fruit. The taste is soft, dense and characterized by an important aromatic persistence of dried apricots, raisins and candied fruits. The fact that this wine is not replicable was established in 2005 with the Best of Class Award Limited Production received at the Los Angeles County Fair, Wines Of The World Competition, and in 2006 with the Oscar for the Best White Wine of Italy. Awards received both

www.marisacuomo.com

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thanks to the specificity of the vines and the unique environmental conditions in which they are cultivated. Again in 2012, it won the title of best white wine of the year at Wine & Food Festival in Cortina and best white wine of Bibenda 2014, as well as being selected by Luca Gardini among the best 100 wines of the World 2014.

In these places of incomparable beauty, the wines produced

by Marisa Cuomo, with the advice of professor Luigi Moio, have elicited positive responses due to their elegance, balance and softness in the several foreign, and non, tourists on holiday along the Amalfi Coast.

Ferraioli often repeats that one should not make wine "for passion" but for love. Love for the history of this family-run vineyard with very deep roots and love for this territory, defined by many as a little slice of heaven. \\\\\ LUCA CĂ€VERA FEBRUARY 2014

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FOCUS ON VENETO ECONOMIC OUTLOOK

VENETO, A WINNING MODEL

A productive system based on entrepreneurs that are willing to risk and look towards the future.

This is how Veneto became the engine of North-East Italy. And today, the economy is stimulated by exports and tourism

8% 25.9%

Other sectors

Manufacturing industry

Foreign-invested companies in Veneto (by sector, 2012)

37.1% Manufacturing industry

16.1% Other professional services

14.1% Other sectors

66.1% Wholesale

32.7% Wholesale

Source: processing by Unioncamere Veneto

Veneto’s foreign-invested companies abroad (by sector, 2012)

FOCUS ON VENETO ECONOMIC OUTLOOK

or many years now, the Veneto model has been studied throughout the world. It is based on an SME network that has led to the minute specialisation of the high quality products that characterise the 21 districts of the region that cover almost all sectors: these are highly skilled companies, often specialised in a small part of the finished product, representing true niches of excellence. The Veneto’s productive situation numbers around 240,000 manufacturing businesses; the large majority of these (98%) are SMEs. Of these, 29,000 occasionally operate abroad, while regular exporters number around 13,000. This makes Veneto one of the leading regions in Italian export. “This is thanks to the ability and experience of our entrepreneurs,” highlights the president of the Veneto Region, Luca Zaia, “who over the years have been able to build a winning model that looks far into the future while remaining very close to the territory.” Veneto closed 2013 with a 2.3% increase in exports: an increase that ranks the region second

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+5%

Increase in exports that interested the food industry sector in the first six months of 2013, corresponding to 1,200 million euro

240,000 The manufacturing companies in Veneto, the large majority of which (98%) are SMEs

11,000

Million euro The export turnover recorded by the Veneto enterprises in the first six months of 2013 in non-EU countries (+6.1%)

FEBRUARY 2014

place after Lombardy (+4.4%) and equal to the Emilia Romagna region.

Going by the data published by the Veneto chambers of commerce union in the report “International Veneto”, in the first six months of 2013 manufacturing exports of the region registered growth in commercial flows towards non-EU countries (+6.1%, almost 11,000 million euro) compared to a reduction in the EU markets (-2.4%, almost 14,400 million). The analysis has also shown different situations among the BRICS countries: Brazil +7.1%, Russia +9%, China +1.2%, India -2.4% and South Africa +14.8%.

Regarding import/export with the various areas of the world, in the decade 2002-2012 the American market showed a contraction of 14.7% in exports and 27.2% in imports; the Asian one +82.6% in exports and +127.2% for imports; the European one +29.5% for exports and +16.8% for imports.

From the merchandise point of view, in the first six months of 2013 the foreign commerce of machinery grew (+2.2% for a worth of 5,000 million euro), as well ITALIAN VALUE

as glasses and electric equipment (+2.4% for 1,400 million), clothing (+3.4% for 1,400 million), the food industry (+5% for 1,200 million) and jewellery (+8.8% for 857 million). A decrease, on the other hand, was recorded in metallurgy (-5.6% for 1,700 million euro), metallic carpentry (-2.5% for 1,400 million), chemical products and pharmaceuticals (-2.6% for 1,000 million) and transport (-11.9% for 1,000 million).

The number of companies in the region selling their products abroad has grown: in 2012, there were 30,000.

The most considerable increases affected SMEs above all, compared to the approximately 300 large exporters.

Regarding foreign investments in Veneto, in 2012 companies with premises in Veneto shared by multinationals numbered 752, with a total of 53,000 employees and an overall turnover of over 25,300 million euro, and a contribution to the regional GDP of 4,200 million euro. One of the most solid sectors of Veneto’s economy is tourism, which saw an increase in visitors last year of 4.7% - almost 10 million - in the cities of art. The number of tourists arriving with cruises also increased (+4.8%). \\\\\ RG FEBRUARY 2014

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FOCUS ON VENETO FERNANDO ZILIO

RELAUNCHING MADE IN VENETO Unioncamere Veneto confirms its role in supporting companies in the challenge of internationalisation.

President Fernando Zilio explains further

roviding a tangible answer to the demands of the entrepreneurial structure. This is the challenge of Fernando Zilio, elected last November as President of Unioncamere Veneto for the next two years. Zilio’s immediate goal is to form a strong and cohesive team to coordinate the efforts of the individual Chambers of Commerce in the area, reserving most resources and energy for the opening of international markets and the relationship with Europe. “Unioncamere Veneto must be the reference point and production room for the region’s seven chambers of commerce and the entire entrepreneurial structure,” he confirms, “continuing and, at the

P

↑ Fernando Zilio, president of Unioncamere Veneto

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same time, broadening its connections with the policies and funding of the European Union through Eurosportello.”

What characteristics make Veneto companies competitive on international markets today?

“Export is vital for our economy. Nevertheless, many of our companies find it hard to assert themselves in foreign markets as they are so small. To broaden their horizons, our companies must work together to become a critical mass, focussing on innovation, technology, originality and on the added value guaranteed by the “Made in Veneto” name which has always distinguished our products. Veneto is quickly adapting to the continual economic changes, researching into increasingly competitive foreign players. Companies must focus on those international markets that are showing the most growth: Turkey, Russia, Mexico, Brazil and Indonesia. The Veneto system still has room for growth if it proves capable of rethinking its competitiveness, highlighting the new access markets, improving distribution networks, increasing productiveness and creating commercial reFEBRUARY 2014

ENTERPRISE EUROPE NETWORK HELPS COMPANIES AND ORGANISATIONS TO INTEGRATE THEMSELVES INTO THE EUROPEAN UNION AND TAKE ADVANTAGE OF COMMUNITY FUNDING lationships on the trans-European axis.”

For a while now, Unioncamere Veneto has been promoting the Eurosportello Veneto initiative. Do we already have an idea of the initial results?

“The authoritativeness of Eurosportello Veneto has grown over the years and today the structure coordinates the North East area of the Enterprise Europe Network, the European network offering free services and assistance to companies in the EC, covering 52 countries through 600 offices. The objective is to help regional organisations and businesses integrate themselves in the European Union and take advantage of community funding. In 2011-2012, the Veneto Association involved 708 organisations in information, consultancy and promotional initiatives, and 134 organisations in B2B missions and events, organised 621 business meetings and technological cooperation meetings between Italian and foreign organisations and issued 237 specialist services in internationalisation and innovation to SMEs. Furthermore, 22 cooperation agreements were signed between Italian and foreign orITALIAN VALUE

ganisations, of which 6 were commercial, 7 technological and 9 for research in participation in the 7th Executive Programme. Europe 2020 looms large on the horizon, so the projects and resources available should be channelled in this direction.”

Are there any specific initiatives on schedule involving non-EU countries - those which the latest data has shown are the most promising markets for Made in Veneto products?

“The association made up of the Region and regional Unioncamere - Veneto Promozione - has been operative for almost two years now. Interventions proposed by the organisation range from the promotion of the Veneto system to the distribution of information on commercial, productive and financial policies of third world countries. Activities include the activation of helpdesks, data banks, reports on the internationalisation of the economy and businesses; the creation of refreshers, specialisation and managerial training initiatives regarding business internationalisation, and the promotion of innovative specialist services regarding work conFEBRUARY 2014

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PROJECTS FOR GROWTH OVER THE BORDERS

+6.1%

The increase in Veneto’s exports to non-EU countries in the first six months of 2013, worth almost 11,000 million euro

tracts. Not to mention joint ventures, partner research and all actions that afford SMEs a specific approach based on their own size and abilities. It is about offering companies services which, on one hand, lower costs through organised collective actions co-funded by the region and the Chambers of Commerce, while on the other, giving them enough visibility in the territory and the system.”

What kind of credit support does Unioncamere offer companies?

“Veneto’s cameral system directly funds associations as a main form of credit support, as we believe that it is the most effective tool for helping companies having difficulty in obtaining bank loans. Last year, Veneto’s Chambers of Commerce issued around 12 million euro to some Confidis (Italian consortia that help companies obtain credit); a large part of this amount was used to guarantee loans awarded to companies in the area, mainly for investments in production and internationalisation. Furthermore, we are currently looking at developing cooperation with the regional funding body Veneto Sviluppo to start up credit initiatives. The idea is to build a collaboration aimed at managing a common rotation fund to support credit to SMEs for the financing of startups and innovative companies.” \\\\\ FRANCESCA DRUIDI 92

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The leader of Veneto’s industrialists, Roberto Zuccato indicates useful tools for developing relations abroad here were 1,304 multinational companies in Veneto at the end of 2011: 15.3% of all multinational companies in Italy. Foreign holding companies, on the other hand, numbered almost 3,700 (13.5% of the national total) and employed just under 152,300 people (9.8% of the national total) with an aggregated turnover of around 25,000 million euro (4.2% of the national total).

“The Veneto economy would undoubtedly benefit from new foreign capital,” reflects the president of Confindustria Veneto, Roberto Zuccato, “especially if aimed at starting up new economic activities or strengthening existing ones, or rather contributing to raising the technological level of local production. We need to work on this front.”

T

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FOCUS ON VENETO ROBERTO ZUCCATO

VENETO’S ECONOMY WOULD CERTAINLY BENEFIT FROM FOREIGN CAPITAL, ESPECIALLY IF AIMED AT STARTING UP NEW ECONOMIC ACTIVITIES What are Confindustria’s next initiatives and how are they supporting those companies interested in expanding abroad? Which markets are the most interesting?

“There are many possible forms of assistance: from consultation with our experts to the coordination for participation in exhibitions or events abroad, via credit intermediation or collaboration in building business networks. The markets that Veneto’s companies are focussing on today are those in the Mediterranean area, the Sub Saharan area, and South Africa, Persian Gulf countries (Arab Emirates, Saudi Arabia), Russia, Kazakhstan and, in Latin America, Mexico and Brazil, as well as China and the new Asian markets.”

← Roberto Zuccato, president of Confindustria Veneto

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What are the main difficulties that companies here encounter in internationalisation processes?

“Our SMEs turn to self-funding a lot, which is no good for developing and building relationships abroad. The other big problem regards the small sizes of regional companies: to face foreign markets you need men and resources. We need to start from business networks and from everything that favours large-scale cooperation and economies. To this end, industrial associations may play a tutorship role, perhaps working in collaboration with the university system.”

How important is the support of banks in crossing national borders, especially for SMEs? In this regard, what is the situation in the region?

“Investing abroad without real support from the credit and finance world is impossible. Particularly for those businesses that are small in size but that make high quality products which are attractive abroad, tangible support from the territory is indispensable.” \\\\\ RENATA GUALTIERI FEBRUARY 2014

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FOCUS ON VENETO GIORGIO GROSSO

SUPPORTING THE PRODUCTION SYSTEM

Veneto Sviluppo (Development of Veneto) will close the year with a total of 10,000 subsidised enterprises.

The President Giorgio Grosso reveals the new investments in support of Venetian companies eneto Sviluppo is an investment company that manages, on behalf of the Regional Administration, funds and resources used to finance the region’s production sectors.

In the first ten months of 2013, the enterprise managed to issue financing for about 300 million euro, recording a growth of 27% compared to 2012. Among the most important choices made to support the regional industrial system was the re-issuance of credit in collaboration with CONFIDI (Collective Warranty for Credit Limits System) and the banks, that allowed the Venice CONFIDI to register more than 1,300 requests from July to October 2013 for access to this system for bank credits of over 104 million euro. “This measure – explained the Veneto Sviluppo President, Giorgio Grosso – is accompanied by hedge coverage or portfolio insurance, the tranches of which will soon allow us to issue an overall financing of 127 million euro to be released to about 500 enterprises”. Another important option was that of de-bureaucratising the existing administrative provisions, to create a regulation to be used solely for industry, artisanal and commercial funds.

What operations are foreseen for 2014?

“We promulgated an important financing plan for all our more dynamic enterprises, allowing them to use the rotating funds for receipt of contributions to capital accounts and interest for a total of 38.8 million euro, to build co-generation power plants and drastically reduce the cost of energy consumption. Furthermore, we are preparing a new project which will allow us to amplify our range of action, and relaunch, above all, the medium sized enterprises.”

What support and finances are foreseen for the small and medium sized companies that want to grow and invest in the international markets?

“We want to bank on the relaunching of enterprises with

V

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↑ Giorgio Grosso, President of Veneto Sviluppo

a turnover below the threshold of 10 million euro that need support for their business plans. We will support entrepreneurial projects that target industrial redevelopment, technological upgrading, and development of innovative proposals for processes and products that target the international market horizon.”

Is this also the reason behind the partnership with the financing of the Friuli Venezia Giulia Region in support of the textile businesses of Venice and Friuli Venezia Giulia?

“This project aims to boost the critical mass of competencies and funds dedicated to the small and medium sized enterprises, with the clear objective of also attracting private capital. We will proceed with the equity activities for the two regional budgeting projects, with the goal of handling resources of at least 100-150 million euro, subdivided in such a way as to cover all the needs of the small and medium sized companies of the two regions.” \\\\\ RENATA GUALTIERI FEBRUARY 2014

FOCUS ON VENETO ETTORE RIELLO

THE EVOLUTION OF EXHIBITIONS A platform for Veneto companies that is attentive to the processes of internationalisation. This is the profile of the contemporary Exhibition Centre, according to the president of Veronafiere, Ettore Riello

for Veronafiere saw a huge leap in projects. Highlighting this is president Riello, who tells us, “We have further strengthened our portfolio of events; we have launched the Smart Energy Expo, a start-up in the energy efficiency sector which was positively received by exhibitors and visitors, while strengthening our activity abroad.” The Verona exhibition hub is, however, already looking to the future and proceeding with its industrial plan, the objective of which is to reach a turnover of more than 100 million euro by 2016.

What are your plans for 2014?

“2014 for Veronafiere will be a year full of events: our pavilions will again host some of the most important biennial and triennial events, such as Fieragricola, Progetto Fuoco and Samoter. We also have some new events on schedule such as OilNonOil, an event dedicated to the entire fuel distribution supply chain.”

And for the future?

“Veronafiere will continue to look closely at emerging markets: some keynotes are, in fact, internationalisation and the creation of strong cooperation among our events in Italy and their development abroad, to favour supply and demand throughout the year and to be present in more markets. However, Verona will remain the true epicentre towards which we can direct the positive results of our ability in developing networks.”

What factors make the organisation’s management so sound?

“Direct management of events is certainly a winning strategy. The success of an event is not only based on its infrastructure and accommodation facilities, but

2013

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↑ Ettore Riello, president of Veronafiere

also on the quality of the exhibits which, to be fruit must evolve and offer additional services. Rigid control and important investments are essential if you want to be innovative, and this is only possible if the same body runs the entire organisation.”

Are there any services that, today, an exhibition FEBRUARY 2014

THE FOOD INDUSTRY AND MARBLE ARE TWO OF VENETO’S PRODUCTIONS OF EXCELLENCE TO WHICH VERONAFIERE GIVES SIGNIFICANT SUPPORT must guarantee to the companies taking part in it in order to maintain its competitiveness?

“If they want to continue to be perceived as a real competitive platform for companies, exhibitions must know how to grasp trends and offer solutions and services to sustain their development. Today an exhibition is no longer a marketplace based on a physical space: over the last 10 years, its role has changed from construction of what is offered to construction of demand, where its true worth is in attracting reporters, opinion leaders and buyers to the events, thanks to a vast knowledge of the markets. Today, we are in yet another phase. Companies are demanding more and more, not just consultations but tailor-made strategies for each individual company.”

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So what should we do?

“Faced with the increased competitiveness of foreign markets, it is necessary to focus on innovation, have the courage to change and renew the formats of the events in order to adapt both to new trends and the changing needs of operators and visitors. An exhibition fulfils its strategic function when it evolves and offers new opportunities and services: training, to get to know the markets better and financial help, to aid sales abroad, but also to support the penetration of the markets, for example, by supplying tangible assistance in customs procedures.”

Today, what is the relationship between Veronafiere and Veneto’s productive system? And how does Veronafiere intend to strengthen it?

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FOCUS ON VENETO ETTORE RIELLO

5 Exhibitions Number of exhibitions organised by Veronafiere abroad in the first six months of 2014 in the USA, Brazil, China and Qatar

KEYNOTES ARE INTERNATIONALISATION AND COOPERATION BETWEEN DOMESTIC EXHIBITIONS AND THEIR DEVELOPMENT ABROAD “The agricultural food and marble industries are two of Veneto’s productive sectors of excellence to which the organisation gives significant support thanks to Vinitaly and Marmomacc. The food industry– in which Veronafiere is a leader in Italy, with a share of 45% of the industry’s exhibitions - in particular, is a sector that produces value and exports and continues to grow on the usual markets. Our industrial plan mainly intends to strengthen the portfolio of exhibitions and develop new events to establish emerging sectors and guarantee the fair district an elevated rotation index.

Thus, the induced activity in the area - estimated at 1,000 million euro – should be further increased. This is where the agreement with Expo 2015 is taking us: collaboration between the two exhibitive bodies, with a series of activities that will start as soon as Vinitaly 98

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and culminate, during the six months of the Exhibition, with the travelling event of OperaWineExpo.

Initially, the exhibition will be held in Verona, from 14th June to 6th September, 2015, as a permanent exhibition in the Palazzo della Gran Guardia in Verona during the opera season at the Arena. Furthermore, the project will bring the exhibition to the Lombardy capital in autumn to close the Expo calendar with a great wine tasting involving the best Italian wine producers and illustrious international guests.”

What policies is the organisation following internationally?

“Over the last few years, Veronafiere has brought its foreign activity to a higher level: no longer measuring itself by number of individual events, but more by the development of strong platforms and permanent referFEBRUARY 2014

FACTS & FIGURES → → → → →

Veronafiere closed 2013 with a turnover of € 74 million First Italian direct organizer has planned and managed 40 events in their locations and 10 events abroad more than 630,000 net square meters sold 11,500 exhibitors 1,025,000 visitors

↑ The Vinitaly International USA 2013 event organised

by Veronafiere

100 million Turnover Total turnover that Gruppo Veronafiere aims to exceed by 2016, as part of its industrial plan for 2012-2016

ence points on foreign markets. The strategy is to create - in the various markets - some platforms both to organise events and to generate an increase in Veronese exhibitions, through the bodies with which it works. An important indication of the presence of Veronafiere on international markets is not only the success of the events organised in those markets, but also how much those events attract exhibitors and buyers and create contact opportunities for events in Verona. Another important aspect of the platform is its goal to become a reference point for Italian companies that approach those markets. The recent opening of the Vinitaly representation point in the Shanghai ICE office is an example of this, as is the founding of Veronafiere do Brazil, which allows the organisation to control the natural stone supply chain on the American continent.”

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What are the main events of Veronafiere on the domestic and international front over the next year?

“On the national front, we have further broadened our products portfolio, strengthening existing sectors and entering into new, highly strategic sectors. In just the first six months of 2014, there are around twenty trade shows in Italy and five abroad on schedule. The year will start with the Motor Bike Expo; February will see the return of the biennial Fieragricola, an important occasion to take stock of the new agriculture community policy reform. After Progetto Fuoco - the international exhibition of wood burning heat and energy production systems and equipment - from 6th to 9th April our district will be completely dedicated to the most highly anticipated event of the first six months: Vinitaly, which this year will include an area dedicated to organic wines. Furthermore, there will be a growth in exhibitions abroad: among the new expos, from 11th to 14th December in Cairo, Egypt, the first edition of MS Africa & Middle East will be held and Vinitaly International will also stop at Chengdu.” \\\\\ FRANCESCA DRUIDI FEBRUARY 2014

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FOCUS ON VENETO ENRICO CARRARO

A CHANGING MODEL Veneto is the stronghold of the Italian SMEs. The entrepreneur Enrico Carraro explains what the indispensable features to succeed on international markets are he way to do business in the North-East has significantly changed. This is due to a natural evolution, thanks to which the model of “small is nice” has left space for new forms of entrepreneurship. “We live in a competitive global area – independently of our reference markets. It is necessary to understand that we need to maintain proper dimensions, international spirit and the ability to innovate. It is unthinkable to conquer market shares without these preconditions.” explains Enrico Carraro, President of the eponymous family-run enterprise, a leader in the production of agricultural systems and machines with production plants in Italy, India, Argentina, China, Germany, Poland and the United States.

What are, in your opinion, the winning internationalisation strategies? And what line has your group followed abroad?

“It is not easy to give a general answer: surely, those who have decided to adopt a simple low-cost strategy, firstly, by moving their production to Romania, then to India, China, Bangladesh and so on, have set up a model which is hardly sustainable in the long term. An approach of industrial nomadism does not help,

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because there will always be a less expensive country.

Gruppo Carraro, since 1997, has decided to internationalise rather than relocate. We have opened production plants in India, Germany, Argentina and China: we did it in order to approach the market and customers, so as to improve our services by employing specific resources and energies in each market. This way, which we define “local for local”, is the most suitable one to reinforce one’s own competitive position. Moreover, at the same time, it is important not to lose sight of the future; therefore, it is necessary to invest in research and innovation to anticipate the needs of the markets. However, this is not possible without a strong competence in quality. In this perspective, I completely agree with the back-to-manufacturing concept”.

In your opinion, have the changes in markets and the difficulties caused by the economic crisis forced entrepreneurs to engage more specialised managers?

“I would not say there is a real need for specialisation.

Actually, I think it is the opposite. Today, a good manager has to be flexible and open-minded. Surely, there is no doubt that a new sensitivity to economic-financial issues is needed, even in the evaluation of any FEBRUARY 2014

↓ Enrico Carraro inaugurates, with Ambassador Daniele Mancini (on his right), the plant of the research centre and a new production line in India

TODAY GRUPPO CARRARO IS PRESENT IN NEW MARKETS AND ABOVE ALL IN THOSE THAT ARE CONSOLIDATING partnership with customers and suppliers. But working with rigidity, in an isolated environment is no good. A response is effective only if it is timely. For this reason, our organisations have to learn how to develop a real knowledge sharing. For instance, we cannot ignore our domestic customers to support those who are abroad.

Firstly, a good manager should be able to build up a capable, solid and efficient team. Without it, he/she will go on alone and never achieve the business goals”.

Carraro is a leading group in its sector, with production plants in many countries around the world.

How do you imagine the future of your group on an international level?

“Today, more than 85% of our turnover comes from abroad and over half of our employees work outside of Italy. These two data are, by themselves, evidence of how important the international dimension is. Thanks ITALIAN VALUE

to our solid global industrial platform, we overcame the 2008 crisis and we are convinced that this choice will be the winning one also in the near future. Today we are present in new markets and above all in those that are consolidating, and probably we will not stop here. The agricultural sector has produced interesting growth rates, for example in India, and the development of the construction industry in China is still evolving. But there are many areas that can lead to major progress. At the same time, however, we believe that Italy can play a strategic role, too. And that is why we have recently signed an important agreement with all unions that provides for a continuous cycle in our Italian establishments, capitalising on investments and saturating the production capacity of mechanical tools, which is the only way to be competitive”. \\\\\ NICOLÒ MULAS MARCELLO FEBRUARY 2014

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FOCUS ON VENETO MARCO BRAZZOLOTTO

‘GLOCAL’ INNOVATION

In order to conquer foreign markets a business strategy is needed, with targeted actions on an organizational and commercial level. Gasparini enterprise’s experience t is one of the 14 enterprises from Veneto that has contributed to the region's international interchange, and in 2013 it received the Marco Polo Award assigned by Unioncamere Veneto and Centro Estero delle Camere di Commercio del Veneto (Foreign Trade Centre of the Chambers of Commerce of Veneto) to enhance and recognise the activity of the companies that have contributed to the development of the international interchange of the Region. Gasparini, producers of hi-tech profiling machines and plants for sheet metal working, has used internationalisation as a tool for business development. The Marketing Manager Marco Brazzolotto explains it.

Exports have driven the enterprise’s growth, from 2008 to the present, from a 58% to a 97% sales increase. How has the enterprise achieved this result?

“This reality, strengthened by our 60-year leading experience in the construction of flexible profiling installations, is based on an established presence in the Italian and European markets thanks to the development of cuttingedge technological solutions. The logical continuation has been to reinforce our presence in markets we already know, focussing our attention and our studies on the international indicators and trends of the mechanical tools’ sector. Nowadays, marketing is the most precise analysing tool of what happens around the world, and it has placed attention on the development of target countries.”

What strategies have been used?

“When planning activities, a precise evaluation of the markets is needed, setting clear priorities, in order not to dissipate energies and available resources. We have strengthened our global presence through the consolidation of the commercial network, above all with local dealers, and through the creation of branches and offices with our technical-commercial supporting staff. We strongly believe in direct contact when meeting customers in various coun-

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tries. Our missions abroad and the annual participation in 5-20 trade fairs around the world represent a fundamental investment to be able to compete. Internationalisation, especially in a sector like ours, is done through medium-long-term work that involves all the business functions.”

Non-European markets, from Bric countries to the United States, are more and more important for Gasparini. What kind of critical conditions do these markets show?

“Many contact points have emerged, but, at the same time, there is also the necessity to provide products suitable for local needs. Therefore, it has become indispensable to redefine the innovation strategies by following the "glocalisation" logic, reducing development times and compressing costs through the improvement of efficiency. EsFEBRUARY 2014

tablishing oneself on a new market requires a large expenditure of time and resources and not always can enterprises cope with this type of investment. Then there are, of course, customs barriers and duties: international standards are not always clear and transparent; international agreements frequently give rise to different interpretations which should be carefully evaluated.”

What makes Gasparini’s profiling systems competitive abroad?

“Italian technology has an international appeal which is very often not recognised here. In the sector of mechanical tools, Italy is the third country in the world in terms of exports, preceded only by Japan and Germany. This shows how much Italian technology is appreciated and recognised worldwide.

Over the years we have developed our expertise and work in a strategic sector for those enterprises that need to increase and improve their productivity. We do not provide our customers with catalogue machinery, but we offer solutions. The process of creating our new plant will become an integral part of the development plans for the enterprises that turn to us.”

What actions have you planned for 2014?

www.gasparini-spa.com/eng

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97% Exports account for 97 per cent of the turnover of the company

5-20

The number of fairs in which the company participates every year

"They are linked to the goal of consolidating the job done so far through the implementation of research and development activities, which are essential in order to be competitive, and to the continuous improvement of all aspects related to the organisation processes.”

How important is innovation in your propensity to export?

"Innovation and flexibility are the cornerstones of our plants.

Our goal is to satisfy needs; we are not just manufacturers, but an engineering enterprise that looks beyond the demands of our customers. Proposing new solutions allows us to have competitive advantages over other players, whether they are them Italian or foreign.” \\\\\ FRANCESCA DRUIDI FEBRUARY 2014

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FOCUS ON VENETO BENETTON, A VENETIAN STORY

A FAMILY THAT WANTS A MORE COLOURFUL WORLD The Benetton family's entrepreneurial story began in the 1960s with its forefather, Luciano. A symbol of Venetian enterprise, the family has created a business empire that boasts 6,500 stores in 120 countries and a turnover of â‚Ź2 billion enetton means a wide range of colours, it means Veneto but, at the same time, it means a mixture of emotions, children's faces, pain, births, brotherhood, water and flowers. In short, life. A life, however, with a timbre that recalls Vivaldi, that is not only sweetness but fullness. It also has a taste, this name: Prosecco.

Thank goodness there is Benetton, or rather the Benettons. They are not perfect; over the years, their advertising and communication choices have caused divisions, aroused debates, broken friendships. Did they exploit disease by disseminating immoral images?

Perhaps. They certainly do not allow you to get comfortable in a single, bureaucratised thought; they let

B

you say yes or no; they do not cheat you with subliminal language. Of course: they make money, even from their charitable initiatives, they earn profits but, in the meantime, they keep you awake and more human.

With this in mind, you can see why an investigation into the miracle of North-East Italy, and the hopes that it still represents for the country, can start only from Ponzano, Benetton's home town, and, more precisely, from Villa Manelli, a villa built in the seventeenth-century yet projected into the third millennium, ancient yet upgraded, preserving yet simultaneously renewing the aesthetic and cultural tradition of Veneto and, at the same time, of Italy.

This villa is the company's headquarters and, moreover, its aesthetic and philosophical source; the symbol of a

way of thinking about the world and work. Work is tiring, hard, rustic, but being human requires a hint of beauty and the scent of a good memory. This Villa was purchased by the Benetton family in 1969 and Luciano Benetton (the forefather) entrusted its restoration to two of his architect friends, Afra and Tobia Scarpa; it was not to be a reworking but instead something that allowed for the return to the source of civilisation.

Conservation that is resurrection. It did not take them three days but fifteen years, the time taken for youth to blossom.

Before retracing the story of the Benettons, it is worth listing to what is hiding under the mantle of the green-coloured carded wool of this brand.

In 120 countries, 6,500 stores display the insignia of the Duchy of Ponzano, achieving a total turnover of more than 2 billion euro per year. On the internet, the Group defines itself as follows: “...the Group has a consolidated identity characterised by colour, authentic fashion,

↑ Carlo, Gilberto, Giuliana e Luciano Benetton

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quality at democratic prices and passion for its work: values that are reflected in the strong, dynamic personality of the brands United Colors of Benetton, Undercolors of Benetton, Sisley and Playlife”. But the Benettons do not stop there. There are Autostrade per l’Italia (Italian motorway concessions), Rome's Airport and, above all, Autogrill.

The Autogrill chain of catering services present across the whole Italian motorway network has even arrived in Russia, where it provides catering services in the international airport of St. Petersburg, the Pulkovo.

After having focused upon ‘conquering the West’, also thanks to major operations on HmnHost (1999) and Aldeasa (2005), the group is now turning its attentions to the Russian market. The expectation is that the concession will generate 130 million in revenues between 2014 and 2021.

Are the Benettons a strange fungus in the industrial and cultural garden of Veneto or are they a flower, drawing inspiration and giving prestige to everything?

There is something very typical. There is the magazine Colours, one of the world's most important. Devised and created by the photographer Oliviero Toscani (with whom Luciano worked for 18 years), it is now produced by “Fabrica”, a creative centre that houses the nursery of artists, masterminds and creative thinkers capable FEBRUARY 2014

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↑ Villa Manelli, restored by Afra and Tobia Scarpa, is home to the headquarters of the Benetton Group

of converting the Venetian madness into actual products. There is one strange and wonderful book written by Sergio Saviane, entitled “The Billionaire” and dedicated to his friend Luciano: the book is also quite hard on him. It represents him as being silent and subdued, crazy yet level-headed, absolutely sincere, capable of choosing rogue collaborators like Flavio Briatore and the cited Toscani. Rising up from poverty with a genial and simple invention. His father was a bicycle mechanic. “My father, Leone, albeit being ill, managed to maintain us by vulcanising tyres. He died at the very end of the war, in 1945” Luciano told the journalist Stefano Lorenzetto.

To Lorenzetto, when they were school mates, Luciano confided his ambition to become rich, to find gold in Veneto. “How do you think you will achieve that?” asked the journalist. Luciano's response: “I do not know. It is what I am trying to work out whilst selling shirts and yarn in Mr. Dellasiega's store”. And he concluded: “Did you not learn anything from the old gold-diggers in America?”

He sold sweaters while travelling round on his bicycle.

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His sister Giuliana wove using a hand loom bought with loans. Until the mental turning point came in 1960, the parade of athletes in Rome for the Olympics: the colourful suits and jerseys, a celebration. So why is everyone around us wearing grey instead? In 1963, when he had already developed “Benetton-très jolie”, following his idea of knits and sweaters instead of suits and ties, the stroke of genius came: the discovery of dyeing already finished items. “At that point, we were only able to dye finished garments if they were

FEBRUARY 2014

FOCUS ON VENETO BENETTON, A VENETIAN STORY

← Luciano Benetton, founder of the family Group

made from carded wool,” explained Luciano. It became the brand's trademark. The rest followed by itself. The subsequent decision to act on its Venetian roots and in particular those of Treviso, by purchasing Palladian villas and restoring them to their original honour and shine.

His brother Gilberto, born in 1939, four years his junior, dealt with everything that was not the core business in the strictest sense. The sports and cultural implications, the link with the city of Treviso through the creation of a sports centre where talents of basketball and volleyball were cultivated and the decision to transfer the brand to the face of Formula One, not only as a simple sponsor, but as a fully-fledged competitor. Flavio Briatore, the unruly genius of marketing, full of ideas and already working with Benetton in Ponzano, was assigned the project and its direction. Resounding successes ensued. Then, when the product had come to fruition, the costs had become unproductive and the freshness had gone, the Benettons gave up the reins: both in basketball and in motor-sports. Rugby remai-

← Villa Pastrenga, in Catena di Villorba, in the province of Treviso, is the headquarters of Fabrica, the communication research centre of the Benetton Group

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ned: the loyal and courteous ruggedness of the colours and the vigour.

Luciano created everything, with his siblings, practically living on a plane, shearing sheep in Patagonia and then flying to open a store in Shanghai, but always coming home, going to spend the evening in a restaurant with some old friends, talking and drinking a little, in that mix of madness and feet firmly planted on the ground that is Veneto. A region equipped with that productive thrill, that intolerance of both the bureaucratic tedium and the stifling constraints of the State, perhaps due to an anthropological-dietary reason: wine, the fact that Venetians were brought up on milk and wine. It was this Biblical nectar that gave protein to children and their mothers, to peasants and poor labourers who all only found nourishment in the drink of Bacchus. It is not a myth, but a documentable biological fact. So, even in those who do not drink, this capacity to vibrate with the desire to work and to be sanely mad has remained, allowing Venetians to dream and to love their own land.

In the early 1990s, with Luciano, the Benettons sought to get directly involved in politics: they gave up disappointed. Expecting politics to change would be deleterious. Then, it is perhaps a case of looking to the pioneering spirit of the Benettons, to their origins, when they were looking for gold and refused to give up even when faced with clear evidence of poverty. The same indomitable spirit that makes you go to Russia, to St. Petersburg, and who knows where, always with colours and new ideas, expanding yourselves.

So, knowing that it can be done, and fighting for that reason, even with the irony demonstrated by Luciano's ‘lion’s head of hair': all this is the Venetian spirit, which does not die even if you slay it. \\\\\ FEBRUARY 2014

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FOCUS ON VENETO MARINO ZORZATO

TEAM PLAYING FOR CULTURE Veneto is one of the regions that best knows how to reap economic advantages from its cultural potential.

The secret is to get administrations, institutions and cultural businesses talking eneto is Italy’s second most important region for the effect of culture on the economy and employment. Establishing this is the report “I am culture”, carried out by the Fondazione Symbola and Unioncamere, regarding the importance of culture on the national economy.

Thanks not only to its culture and landscape heritage, but also to its “ability to create opportunities and its skill in taking advantage of our lively cultural productive system” confirms Marino Zorzato, vice president of the Veneto Region and culture delegate.

Culture and growth represent a working combination in Veneto.

“Yes, as demonstrated by the rate of tourism in our region. Foreign tourists in Veneto, who mainly come for culture and to visit cities of art, make up 37.4% of all visitors, compared to the 26.8% of beach lovers, 21.3% of lake tourists, and 3.6% of mountain enthusiasts. This result shows us the importance of culture in the choices that bring foreign tourists to our region. In 2012, foreigners spent around 1,900 million euro on cultural holidays in Veneto, 52.6% of the total spent by foreign tourists.”

What actions have been set up by the Veneto Region for tourist promotion?

“We have chosen to support projects creating a territorial network through programme agreements.

For example, starting in 2010, we began the ‘Reteventi Cultura Veneto’ (Veneto Culture Events) network, aimed at valorising the historical, artistic and environmental heritage of this territory, while knowing how to mix cultural goods and activities,

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↑ The last edition of the International Film Festival of Venice

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THE CULTURAL INDUSTRY, A WINNING INVESTMENT THE CULTURAL SECTOR IS AS PRODUCTIVE AS EVER, AS SEEN IN THE LATEST REPORT

BY UNIONCAMERE AND SYMBOLA

1,900 Million euro How much tourists spent in 2012 on cultural holidays in Veneto

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he Italian cultural industry is an important sector that could boost the wealth of regions. As highlighted in the 2013 report by the SYMBOLA Foun-

dation and UNIONCAMERE entitled “I am culture - the quality and beauty of Italy challenges the crisis,” the Italian cultural system represents 5.8% of the wealth produced in our country, equivalent to about 80,800 million euro (which includes the contributions of the public and nonprofit organisations), an added value which is increased by 15.3% if the entire production line is taken into consideration, including the rest of the spin-off economy from cultural industries (tourism, commerce and transportation).

The list of regions classified according to the value added to their overall economy by their creative industries shows that Venice places third with 16.3 percent, after the Lazio (southern Italy) and Marche (centre-east) regions. It reaches its peak at 7.1 percent in regards to employment generated by cultural industries. The SYMBOLA and UNIONCAMERE analyses focus also on the ability of the cultural productive system to generate income: Venice places second in Italy for the effects of cultural production on the local economy and demonstrates a greater tendency towards exportation (about 9,000 million euro for both). The survey then cites the Civic Museum Foundation of Venice (a member foundation with a sole shareholder-founder, the

art and theatre, tradition and modernity, in a logical network and system.”

How has the territory responded?

“We have been able to increase the number of events in the area and the involvement of the associations, as well as that of public administrations. In 2011, over 3,500 events and 800 organisations were involved in regional ITALIAN VALUE

Municipality of Venice) as a noteworthy example of independent management of culture. But not only Venice stands in the foreground. In the first ten positions in the classification of outstanding Italian provinces in cultural performance, we have three Venetian provinces: Vicenza (fifth), Treviso (sixth) and Verona (tenth). FD

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programming. 2012 showed an increase with over 4,000 events and more than 900 bodies.”

What initiatives are you planning, on the other hand, in those tourist areas that have been, until now, less emphasised?

“Regarding religious tourism, we have approved the Walks of Faith programme. These four journeys will be the core of religious cultural tourism: the great rogations of the Asiago Altopiano, the Via dei Papi (of the Popes), the walk of St. Anthony and the itineraries of faith in Valpolicella. Furthermore, 2014 will see the start of the 100th anniversary celebrations of the First World War. Within this ambit, we will start up a territory-wide programme to valorise Veneto’s historical testimonies relating to the Great War. Finally, we have signed a protocol of understanding with Veneto’s Chambers of Commerce to share a programme of initiatives aimed at encouraging the realisation of cinematographic, television and audiovisual productions in the region. Another important point is the agreement with Confindustria 110

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Veneto to valorise the cultural legacy of companies and promote business culture.”

What does this consist of?

“We will analyse companies’ participation in both projects of culture and in cultural partnerships between the public and private sector. The results include the census of companies investing in culture, the indepth study of tax regulations put into effect to favour investments, the implementation of the portal www.progettoindustriaecultura.it and the birth of a network of business museums. It is vital to unite tourism with culture and culture with the identity of a territory and with the market.” \\\\\ FRANCESCA DRUIDI FEBRUARY 2014

FOCUS ON VENETO MARINO FINOZZI

ALL-SEASON TOURISM Veneto’s tourism is alive and kicking. With its great appeal to foreign visitors, tourism is changing its appearance, adapting to the needs of increasingly demanding tourists eneto preserves its global appeal as a welcoming region and a land of beauty, goodness and cordiality,” explains Marino Finozzi, regional councillor for Tourism. “Tourism really is the most important regional and national economic sector and developing it means helping the entire country.” The final data of the first 8 months of 2013 show a 1.4% increase. “August’s definitive and certified data,” continues Finozzi, “show 2,675,536 registered arrivals, with a 7% increase compared to the same month in 2012, which translates into 14,136,982 visits”. The increase in arrivals regarded all tourism www.veneto.to/home areas: the sea +9%, cities of art +7.2%, lakes +6%, spas +2.8% and mountains +0.3%. And the overall percentage of foreign tourists has grown again, exceeding 66% of the total, with Germany, Austria, Netherlands, the United Kingdom and France ahead, and with a two figure growth of Russians (+20.1%), Chinese (+23.1%), Australians (+13.2%), Irish (+ 12.8%), South Africans (+13.4%) and South Americans (+12.6%). A demonstration, according to Marino Finozzi, that when promotion is serious and constructive, the results are good. This is why the prospects for 2014 confirm the good results of 2013. “Veneto once again proves unbeatable in tourism,” Finozzi remarks.

Which destinations do you intend to strengthen?

“There are some areas, such as the mountains, that are linked to the whims of the weather, especially in the winter.

This is why we are working on promoting the “other” ↑ Marino Finozzi, tourism mountains, away from the ski slopes, especially in the sumcouncillor for the Veneto Region mer months. For example, the bike parks: ski slopes used in

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International tourism in Veneto (2012) Arrivals

Overnight stays

Art cities

5,681,199

12,241,828

Lakes

1,644,365

9,398,465

Sea

2,411,843

16,458,624

Mountains

274,920

1,025,556

Thermal baths

218,177

1,262,587

10,230,504

40,387,060

Total

A SOLE STRATEGY In line with the trends of a developing sector, tourism is eyeing new strategies

Source: Unioncamere on Veneto Region data

summer by bike lovers, turning them into bike-tourism routes. Furthermore, the new tourist theme ‘Pedemontana collina veneta’ (Piedmont Veneto hill) is proving successful, and in a little over two years has already been confirmed as a new feature in the regional offering.”

For your tourism policy, how important is it to participate in B2B meetings, exhibitions and workshops? What are the upcoming events that you will be taking part in?

“We are increasingly aware that today B2Bs, exhibitions and workshops are our marketing strategy’s strong points and this is why we try to take part in the most important appointments. Regarding exhibitions, naturally we cannot miss the Free exhibition in Munich, ITB in Berlin, Mitt in Moscow and UIT in Kiev. Furthermore, we must consider that 2014 has already been declared a year of Italy-Russia tourism, giving Russian tourists a free visa to travel to Italy. It is an occasion that we cannot miss out on and this is why we are concentrating our strengths in that market. At the beginning of December, the region organised a workshop in Moscow that proved successful among the operators present, but especially among Russian buyers.” \\\\\ TERESA BELLEMO 112

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eneto continues to top the list as Italy’s most visited region. This can mainly be linked to the power of the Venetian trademark, but also to another important feature of this region: the variety of destinations that not only target the seaside areas, but range from Garda Lake to the Dolomite mountains, from the cities of art to the thermal baths. A truly unique and wide-ranging choice, not only in Italy, but also in the entire Mediterranean basin. We need to stress, however, that the tourist flows are fundamentally spontaneous and connected to seasonal trends. Antonello De’Medici, President of Veneto’s FEDERTURISMO (National Federation of the Travelling and Touring Industry) speaks about this.

What are the goals for 2014?

“We have essentially two challenges and both are based on a program of marketing activities of destinations, combined as much as possible with a package deal. While we have to recover the tourist flows from consolidated markets such as those coming from Germany, Northern Europe and the United States, we have to be open to growing markets; I am referring to Russia, China, Brazil and

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FOCUS ON VENETO ANTONELLO DE’ MEDICI

THE BIG TOUR OPERATORS OF THE EMERGING MARKETS LOOK AT VENICE WITH CURIOSITY, ATTRACTED BY THE VENETIAN CHARM

India. With regard to the second set of countries, we have to remove, above all, bureaucratic obstacles to entry permits. We thus have to cooperate with the embassies for visas. Due to its multiple assets, Venice has all the tools for the integration of stays into a multi-dimensional offer that could be useful in extending the overall average stays of visitors. One could, for example, combine Venice with the Dolomites, the thermal baths with wine-and-food events, tourist fairs in the cities of art, beach holidays with visits to cultural sites. Finally, to integrate everything, we will have to improve promotions of the regions through a campaign launched on the web, which is the information and promotions channel.”

In what sectors does the tourism industry work best, and which are those that have to be strengthened?

“Of course the sector with good dynamics is that involving the high bracket 5-star accommodations which, however, target a niche clientele, and is thus very selective. This sector is driven above all by the force of trademarks and the big distribution chains, mostly concentrated in the city of Venice. A fast growing sector is certainly that of the countryside farm facilities, that target competitive volumes and rates, which are enjoying a constantly growing and youthful trend. These facilities are concentrated mostly in the Garda Lake areas, whereas during the summer season, also the seaside structures come into play. The category that suffers most is that of the undifferentiated facilities, the 3-star and at times 4-star family run structures that have not been renovated. Also the thermal baths sector shows a downtrend, but the cause here lies in the difficulties of a generational takeover of the clientele and the need for a comprehensive analysis in terms of both offers as well as the target markets.”

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In a B2B perspective, what is the trend of Venetian products and what is your focus in 2014?

“The big tour operators of the emerging markets look at Venice with curiosity, attracted by the Venice magnet which they consider an excellent opportunity for stays that extend into the rest of the region. We are talking precisely about those packages which are complementary to Venice, that also include the mountains, seaside and thermal baths as an alternative to the traditional stopovers of the grand tours which usually cover Rome, Florence and Venice. I am referring particularly to the Asian markets, China and Taiwan, and also to Indonesia, Brazil, the Middle East and Russia, with the need to develop, however, from just a solely passive offering of hotels, to the creation of true and proper experienceenriching travel packages.” \\\\\ FRANCESCA DRUIDI FEBRUARY 2014

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BUSINESS MODELS ROBERTO SNAIDERO

MADE IN ITALY ON AN AIRCRAFT CARRIER The military vehicle’s mission this time is to promote excellence – the heart of Italian living.

Roberto Snaidero describes the stages involved and the results achieved hipping out as an ambassador of design.

“Cavour”, the Italian Navy aircraft carrier, left Civitavecchia on 13th November for a rather unusual mission that has nothing military about it: outfitted as a “floating exhibition” it has been booked up until 7th April, 2014, for a total of sixteen stops in the more commercially strategic resorts of the Persian Gulf and Africa. It is therefore a mission to show developing or developed countries the excellence of Italian production. The exhibitive area of the containers where military aircraft are usually kept is hosting, among others, the area of FederlegnoArredo (Italian Federation of wood, cork, furniture and furnishings industries). The federation has reserved 150 square metres to exhibit 90 products belonging to companies that decided to accept this international challenge. “Operation ‘Cavour’ is an occasion to strengthen profitable cooperation among companies, institutions and category associations of the sector in order to guarantee tangible returns – not only in terms of image, but also commercial results – while overseeing strategic markets for Made in Italy excellence”, Roberto Snaidero, president of Fed-

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↑ Roberto Snaidero, president of

FederlegnoArredo

www.federlegnoarredo.it

FEBRUARY 2014

THE HOME IS THE SOUL OF DESIGN. THIS IS WHY WE HAVE BROUGHT PIECES OF THE ITALIAN HOME TO THE WORLD erlegnoArredo explains.

The aircraft carrier made its first stop at Djibouti on the Red Sea, to focus on the technical aspects of the exhibition set up, to then leave for its true journey from Abu Dhabi, at the end of November, to Mina Sulman (Bahrain), Kuwait City (Kuwait), Doha (Qatar), Mascate (Oman), Dubai (EAU), Mombasa (Kenya), Maputo (Mozambique), Durban (South Africa), and Cape Town (South Africa). Then it will be the turn of Angola, Congo, Nigeria, Ghana, Senegal, Morocco and Algeria. On 7th April the ship is expected to return to Taranto.

“Other countries,” Snaidero continues, “look to Italy as the fatherland of design. It is time to show them the quality of Italian furniture. Many come to us for sector exhibitions, such as the Salone del Mobile or Made Expo. In this case, we have gone directly to them.”

Federlegno’s “The heart of Italian living. Your home is our passion” will display prestigious Made in Italy furniture and finishings making up the perfect installation to show Italy as a true cradle of manual dexterity, research and innovation: our entrepreneurs work constantly to help improve ITALIAN VALUE

people’s lives through the creation of beautiful, well-made and functional furniture, finishings, illumination, ornaments and flooring. We gave our stand this title as the home is the soul of design. This is why we wanted to bring pieces of Italian homes to the world, to bring a positive message of Italy and its unique style. We have many copying us, cloning us, but Italian taste is our strength.”

During the stop over in Bahrain, the federation represenFEBRUARY 2014

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BUSINESS MODELS ROBERTO SNAIDERO

tatives took part in the first edition of the Manama design exhibition. Visiting the on-board exhibition was a delegation of the Hilal Conference & Exhibitions, the company that organises the Bahrain Interior Design Week, an exhibition that has been held in Bahrain for five years. The Saudi economy is undergoing a phase of sustained growth thanks to the favourable combination of oil prices, expansive tax policies and low interest rates. The GDP of Saudi Arabia in 2012 grew in real terms by 6.8%. A dynamic market, already being monitored by Federlegno Arredo who, through ad hoc missions (from 2011 to 2013), has solidified the opportunities to access the home and office sector both in the contract and retail segments.

From 26th to 28th January, “The heart of Italian living” was in the Mozambique capital catalysing the attention of media, designers and dealers interested in discovering the excellence of Italian furnishing still relatively unknown in a market of great growth potential. Over 40 professionals of the furnishings and interior design sector have had the chance to see the products on display up close. “From the beginning of the mission,” says Roberto Snaidero, “our exhibition has had growing success, confirming that Africa is potentially one of the most promising markets for Italian companies. The 200 professional sector contacts (32 of which reached the Cavour aircraft carrier by helicopter) were 116

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36

Companies FederlegnoArredo associates, travelling with the Cavour military aircraft carrier, have taken up 150 square metres exhibiting 90 products

activated in the six previous stages; during the Bahrain stage, participation in the Mina Sulman Design Week was organized, and many business enquiries were made by local businesses to Italian companies. Furthermore, the Federlegno Arredo delegation had the chance to visit some educational structures aimed at professional training that the Italian NPO AVSI follows in the African continent. Maputo is the third African leg of the tour “The country's system in movement” which, after the Middle East and Persian Gulf countries, will travel to Angola, Congo, Nigeria, Ghana, Senegal, Morocco and Algeria.”

Snaidero believes that the Cavour initiative has a huge range, and that it is “able to offer the right visibility to the associated companies,” concludes the Federlegno president, “especially in areas of great potential development such as Africa and the Middle East which in the near future will be more and more receptive to our products.” \\\\\ RENATO FERRETTI FEBRUARY 2014

BUSINESS MODELS MONICA, GISELLA AND RICCARDO COLOMBO

STEEL IN 2014

↓ Monica, Gisella and Riccardo Colombo of the Colombo drawing mill in Magnago (Milan)

Forecasts for the iron and steel industry. In Europe, Turkey will be the top competitor. Over to Monica, Gisella and Riccardo Colombo for their thoughts

urofer (the European steel association) predicts a growth of 2.1% in steel production in Europe in 2014. The organisation also describes a two-speed Europe, with the North in advantage over the South. A driven performance is forecast for the rest of the world. In first place Africa (+8%), followed by the Middle East (+6.3%) and Latin America (+5%), while, in Asia, only China should grow by 3%. If the average growth rate among non-EU countries is 4.6%, the true international competitor, among European producers, will be Turkey, helped by its strategic geographical position and favoured by a growing internal market and an efficient plant engineering and logistic and organisational structure. “This could further draw out the weak points of the European steel sector: an excess of production, the competition of emerging countries and the lack of research into added value segments. Prospects for the sector still depend on whether or not they can access Asian markets.” These are the words of Monica Colombo who, together with Gisella and Riccardo, manages the Colombo drawing mill, specialised in the production of drawn flat and square steel, with sharp corners, and rounded raw or annealed edges.

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THE PROSPECTS FOR THE SECTOR STILL DEPEND ON ACCESS TO ASIAN MARKETS

As you are aiming at accessing higher added value segments, what commitments have you made on the technological innovation front?

Gisella Colombo: “The Colombo drawing mill's current technological equipment is based on the five steel production and transformation factories. Recently, the entire machinery system has been renovated, answering the need to invest in research and development, an aspect that has brought us European-level recognition for the quality of our steels. We are also planning to insert a new drawing counter, which will allow us to broaden our production range.”

As the true competitor of the future is Turkey, unITALIAN VALUE

til now, which countries have posed the greatest challenge?

Riccardo Colombo: “The development of steel production in other countries, for example Spain, has led to a growth in competition in the market. In particular, the Iberian country is able to produce raw materials as well as the finished product at ultra-competitive prices, weakening our competitiveness. And this has forced us to review our price lists and reduce our prices. Nonetheless, prices cannot fall below a certain level.”

Which sectors are you most interested in and what promotion channels do you use to introduce yourselves abroad?

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+2.1%

EU growth Increase forecast by Eurofer for the European production of steel in 2014

www.trafileriacolombo.com

+4.6%

Non-EU growth Average increase forecast in non-European countries for the production of steel in 2014

Monica Colombo: “Our articles are aimed at various ambits: from components for car engines to precision guides for automatisms and carpentry clamps, to oven grills, lift profiles, weapons, applications for construction and agriculture, and oil pressure valves. This is a varied range of sectors, which causes us to have to make some choices regarding promotion through exhibition.

We recently participated in Made in Steel in Milan and, as usual, in April we will be taking part in Wire in Düsseldorf.”

A very current theme is that of industry oriented towards sustainable development. What policies have you put in place?

G. C.: “Our environmental policy respects the current law in force regarding significant environmental impact. Our production process is continually under inspection to monitor the relative environmental impact. Further120

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more, we are committed to eliminating all risks linked to people's safety and, where it is impossible to eliminate them completely, reduce them as much as possible.”

Over the past years, which countries have been reference points for your business?

R. C.: “We have established ourselves in Germany, a fundamental market for the company, followed by countries such as Sweden, Austria, Denmark, Spain, Greece, Brazil, Mexico, Australia, Egypt and Israel. Nonetheless, the situation that is emerging for the steel and iron industry and for other sectors is certainly not great. Over the past few months we have been witnessing a similar situation to that of 2009: all companies are once again finding themselves in great financial difficulty due to a strong reduction in demand, with the subsequent drop in purchase orders.” \\\\\ VITTORIA DIVARO FEBRUARY 2014

BUSINESS MODELS RICCARDO AND ANDREA ROTA

→ Riccardo and Andrea Rota, MD of Sei Rota & C. based in Liscate (Milan)

SUSTAINABILITY AT THE OFFICE Design and eco-sustainability for archiving material.

Zero emissions and components that conform with the new European regulations.

Riccardo and Andrea Rota’s solutions

unctionality, design and eco-sustainability are the characteristic traits of the production of Sei Rota, the Milan-based company that produces archiving material, self-adhesive stickers and accessories for meetings, conventions and correspondence. “Our work starts with the manufacture of the machinery and continues with the creation of the products. These enter the market under the Creatoinitalia (created in Italy) brand name, highlighting the origin of our innovations.” Explaining this is Riccardo Rota who, together with his brother Andrea, manages the family business. “Our production,” Andrea Rota continues, “is created entirely in Italy following an industrial and automated logic; nevertheless, our products are created as carefully as handmade ones, with a typically Italian taste, and can be customized according to clients’ requirements. At the same time, we offer the market a broad range of items that makes us competitive among the main global players: this range, besides the office line – which represents our main business area – also covers articles for school and the home. In fact, we are investing in strengthening these latter two sectors.”

With over half a century of experience, Sei Rota, founded in 1953, has become known for its reliable service and

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70%

Energy How much energy is produced autonomously by the photovoltaic system at Sei Rota in regards to its total energy consumption

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www.seirota.it

WE ONLY CHOOSE HIGH QUALITY, BIOCOMPATIBLE MATERIALS WITH A LOW ENVIRONMENTAL IMPACT for the long-lasting nature of its products, as well as for environmental safety. “We are very aware of the eco-sustainability of processes and products,” Riccardo Rota says, “which is why we only choose biocompatible materials that have a low environmental impact and conform to the strictest safety regulations. As well as paper, cardboard and certified metallic parts, in line with the new European regulations (Reach) the company also does not use chemical components in the plasticising of materials, and we only use safe materials such as polypropylene. And, thanks to our investment in photovoltaic system, we produce around 70% of the energy used ourselves, thus cutting carbon dioxide emissions. We even converted the interior thermal systems to methane gas years ago, to ensure that we do not emit carbon dioxide into the air.

Furthermore, all production remnants in phthalate-free PVC, polypropylene, paper, cardboard and metallic parts are completely recycled in the production of articles des-

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tined to the agriculture, construction and industry sectors.”

All these choices have contributed to Sei Rota’s success in the world of office archiving. “The strategy which has allowed us to win shares in the international market,” Andrea Rota emphasises, “is a result of the awareness and need to reconcile business with environmental demands, respect for nature and the use of safe, long-lasting and certified materials. This is how we have established ourselves in Europe, especially Belgium, Switzerland, the United Kingdom and Greece. Currently, we are implementing export management to promote our brand in Northern Europe, especially in Germany and the surrounding countries, with the aim of pushing into Eastern Europe – and potentially, also into Russia. Our most ambitious goal, however, is our approaching markets in Latin America. To succeed, it is important to participate in the most important exhibitions in this sector. This year, we have already participated in Paperworld, which recently ended in Frankfurt, and in March we will be in Dubai for Paperworld Middle East.” \\\\\ LUCA CÀVERA FEBRUARY 2014

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INNOVATION GIUSEPPE LONGO

THE MEDICAL SECTOR, AN EVOLVING MARKET

The entrepreneurial case of Assut Europe, which has focused most of its business on innovation in the surgical sutures field oncentrating resources on research is the only possible way to think. It is a rule that affects the medical sector in particular, where innovation adds an indisputable social value. When products are made according to this kind of value it is easy to attract the interest of many people in this sector, including final consumers, far beyond the national borders of individual enterprises. This is the case of Assut Europe, an Italian enterprise specialising in the manufacture of surgical sutures, and more. Today, the company internationally produces and commercialises a wide range of specialised medical products , including absorbable and non-

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absorbable sutures, surgical meshes, orthopaedic and trauma devices and devices for all surgical specialities. “We give great value to internationalisation and the most important markets are Europe, South America, especially Brazil, and Russia. It is no coincidence that 60% of our production is exported. We are present – says the President Giuseppe Longo - in many countries such as Spain, England, Russia, Belarus, Latin America, the United States, Tunisia, Algeria and Morocco with more than 200 employees, of which 120 in Italy, and we have a turnover of about 45 million euro which continues to grow. Our leading sectors are mainly within the context of disposable surgical devices.”

FEBRUARY 2014

WE HAVE PATENTED A THREAD THAT MAKES KNOTS UNNECESSARY DURING OPERATIONS

Assut Europe has its head office in Rome

GLOBAL PHARMACEUTICAL TURNOVER For the near future, the enterprise is looking towards Asia with confidence. "Here we already have contacts and records in place - continues Longo - for sales authorisation." Internationalisation is therefore the common thread on which the business strategy of Assut Europe is based.

Assut Europe has obtained the Prize "Premio Ok Italia 2013", proclaimed by Unicredit Bank, designed for flagship projects created by small and medium-sized national businesses. The Prize was awarded to Assut Europe by virtue of a considerable international dynamism in the category “Expansion into foreign markets.� The other side of the export coin, however, is represented by the internal market which is struggling to regain pre-crisis results. "The national market is suffering and, more generally, the Italian system does not adequately support enterprises - states the President of Assut Europe - slowing down their pace with lengthy reimbursement times."

Giuseppe Longo knows that to conquer the demanding international public it is essential to invest constantly

www.assuteurope.com exportdepartment@assuteurope.com

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(billions of dollars) BRIC countries and the rest of the world

2006

2011

2016

1200 441

900

258

600

131

300

526

0

697

Advanced economies

719

Between 2006 and 2011 the average growth was 5.8% for advanced economies and 14.4% for BRIC countries and the rest of the world. It is expected that from 2011 to 2016 the growth will drop to 0.6% for advanced economies and will settle around 11.3% for BRIC countries and the rest of the world.

in development, research and technological innovation, especially if dealing with a sector in continuous evolution such as the medical one. "Every year we invest 5% of our turnover in innovation. In Magliano dei Marsi our engineers are studying new products and have close relations with Italian and foreign research centres. Among them, La Sapienza University of Rome, Policlinico Umberto I general hospital and Tor Vergata University of Rome for the development of new surgical implants, and the University of Madrid. Just to mention an example, we have patented a thread that makes knots unnecessary during operations and which has become popular because it is so easy to use." \\\\\ LORENZO BRENNA FEBRUARY 2014

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INNOVATION GIORDANO GOZZI

COMPRESSORS, NEW DEVELOPMENTS Compression of natural gas and technical gases.

A tailor-made sector. We talk about it with Giordano Gozzi from Idro Meccanica

ew markets and new sectors for gas compression. In particular, those related to the use of alternative energy sources for the production of hydrogen used as an energy carrier, namely to store energy. This is the case of power-to-gas projects that are being developed throughout Europe. These are some of the future goals of the Italian enterprise Idro Meccanica, which is aiming at greater penetration in the Scandinavian and Baltic Re-

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www.idromeccanica.it www.cngv.com

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publics, in the United Kingdom and also in Russia and the United States. "We are fuelling the interest in new sectors with major investments in innovation and research" explains Giordano Gozzi, Technical Director of this enterprise producing natural gas compressors for the automotive industry, operated by a hydrostatic transmission and designed for the compression of technical gases, besides natural gas. The peculiar design of Idro Meccanica's units makes these compressors a product capable of guaranteeing the highest flexibility on the market. In addition, their modular configuration allows the service station to be expanded in a second phase, simply by adding new modules.

Among the most important innovations, those relating to control and remote control via Internet and to FEBRUARY 2014

Plants built by Idro Meccanica in Modena (Central-Northern Italy)

THE INNOVATIONS ARE CONTROL AND REMOTE CONTROL VIA INTERNET AND BIOGAS AND BIOMETHANE FOR THE AUTOMOTIVE SECTOR

biogas and biomethane for the automotive sector should be mentioned. "The latter - continues Giordano Gozzi – is already a reality in many European countries.

We have created several plants for the refuelling of biomethane cars and buses in Sweden and biomethane injection to the national grid in Germany."

Research underpins every new tailor-made product. "In fact, with greater involvement of the client in the design phase, he or she can support us in designing the system. Each new project leads us to the creation of a new model or variation: starting from approximately fifty basic models, we can provide over two hundred variants. Moreover, the transfer of an already-tested solution from one sector to another, even without introducing new technology, contributes to bringing innovation to its application fields. Besides this, in recent years there has been a tendency to offer a complete service. Meeting customers' needs then becomes strategic: from technical advice when placing the order to turnkey delivery of the plant. Obviously, to be sure that this turns into an evolutionary advantage, the ability to communicate with customers is necessary and a careful control in production and internal testITALIAN VALUE

ing are fundamental."

Together with the turnkey product, Idro Meccanica's greatest resource is its background of skills, which also includes the manufacture of compressors for natural gas extraction from wells in Italy and in Germany, which can also be used for shale gas. This sector will represent a new source of supply for natural gas. \\\\\ VITTORIA DIVARO FEBRUARY 2014

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INNOVATION RAIMONDO AND NICOLA MATTIUZZO

THE VERSATILITY OF THE GADGET Specialist technologies for the production of customised promotional items. Raimondo and Nicola Mattiuzzo's strategy

Raxy Line is located in Spresiano in the province of Treviso, Northeast Italy

he focus is on the global market and a production cycle based entirely in Italy. This is the strategy of Raimondo and Nicola Mattiuzzo, owners of Raxy Line, a company that has specialised for thirty years in sublimation and specialist printing for the production of customised promotional items. "Thanks to our versatility in production," says Raimondo Mattiuzzo, "we can create lanyards and laptop bags, eco-leather or rubber mobile phone holders, key rings, extra-thin mouse pads, cleaning cloths and cases for glasses, along with spring and winter scarves. And every month we design new prototypes, as well as creating products specifically requested by our customers."

In recent years Raxy Line has initiated a policy to reduce its sale prices and, at the same time, to increase the quality offered. This policy is being implemented by way of the OEKO-TEX certification process. In addition to this, sublimation printing technology allows the company to print with photographic quality on all materials with a polyester base. "The potential aspects of this printing system are remarkable," says Nicola Mattiuzzo, "and this is why we are able to design the most disparate and di-

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verse items, because we know that our machines, along with our technicians, are able to process them and make them attractive also from a graphics point of view - photographs, designs and colours yield excellent results."

This strategic attention does not stop at the production cycle, but continues with participation in trade shows and events. "Trade shows," continues Nicola Mattiuzzo, "are the essential step for establishing direct contact, in-

30 mln

Meters Ribbons and lanyards produced by Raxy Line, one of the biggest producers of printed ribbons

FEBRUARY 2014

stilling confidence and assurance, and allowing people to get their hands on what you are offering to the market. All the trade show events we are concentrating on are in the promotional sector. At present, we deal mainly with countries like France, Spain, Germany and Finland, which are our reference markets. It is no coincidence, then, that exports constitute, for our company, the most significant share of our sales, a share that will continue to increase in the long-term, also thanks to the expansion policy we are currently implementing with the goal of penetrating markets outside Europe. Our priority, however, remains the European market, with the aim of consolidating our current customer portfolio and even expanding it. In 2013, we participated, as we have for many years, in shows such as Psi in D端sseldorf, Germany; Ctco in Lyon, France; News Week Road-Show, during which we visited a good five German cities; and Premium Sourcing in Paris." And Raimondo Mattiuzzo continues: "Ensuring you are recognised immediately by cus-

www.raxyline.com

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WITH SUBLIMATION PRINTING, WE ACHIEVE PHOTOGRAPHIC QUALITY ON ALL POLYESTER MATERIALS tomers is crucial. But it is also important get a good grasp of their requirements and then to satisfy them quickly. The request is translated into objective data and sent to the graphics department which then gives shape to it. Once the design is approved, this goes into production by way of an integrated computer system capable of monitoring at all times the set of elements that make up the item in production, which is then sublimation or screen printed, and then packaged. The shipment is scheduled at the time of confirmation of the product, so as to guarantee the delivery timescales, and it can be delivered wherever the customer wants. In order to achieve all this effectively and efficiently we have procured for ourselves a sophisticated business intelligence system, capable of providing, at any time, the reports needed to assess the entire production process." \\\\\ VITTORIA DIVARO FEBRUARY 2014

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EXPORT ALBERTO BABAN AND NICOLA MASON

DESIGNER CLOSURES, TECHNOLOGY AND INNOVATION The Tapì Closures are the result of industrial engineering and complex design. The growth experience of a Venetian Company

ust like the major Italian designer brands in the fashion and automobile industries, bottle stoppers have also transformed over the years, reflecting the tastes and technologies of the various eras. Today, the latest generation of foamed synthetic stoppers are considered masterpieces of industrial engineering and design and Tapì has been the world leader in the production of Bar-Top stoppers for over ten years. The words of the Italian writer Giuseppe Tomasi di Lampedusa, “everything needs to change, so everything can stay the same”, reflect the spirit behind the company: the closures designed by Tapì allow bottlers to renew their image, keeping in step with the times and with new technologies, whilst maintaining quality levels and long-standing traditions.

The story of the Tapì brand began in 1998, in response to market demand for a high quality industrial product with customisable and replicable specifications: today, the company is increasing its global presence thanks to the original idea of its owners, Alberto Baban and Nicola Mason, to bring foamed synthetic stoppers to the market of spirits.

Which characteristics of your products have ena-

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www.tapigroup.com

bled you to enjoy this success?

Nicola Mason: “The stoppers produced by Tapì, as well as performing the function of airtight sealing, never crumble, they do not produce dust and cannot be attacked by mould or bacteria; they offer a lasting barrier against oxygen, preserving over time the organoleptic characteristics and encouraging the proper development and conservation of the product. They are absolutely immune to any permeations of any nature.”

How did you achieve this result?

Alberto Baban: “The real “pulse” of the group is its research and development department, dedicated exclusively to investigating technical solutions and production processes and developing new products for the market. Stoppers are designed and tested here virtually, with extremely innovative precision instruments.”

FEBRUARY 2014

← Nicola Mason and Alberto Baban, founders of Tapì

52% Europe More than half of Tapì's sales are made in Europe, 38% in the North American market and 10% in South America

What strategic choices have allowed your company to become known on an international level?

N. M.: “Definitely the development of new production plants and modular structures in Argentina, Russia and Mexico both to respond to the global emergency of reducing the “carbon footprint” and to obtain greater efficiency in our services, production and logistics. By creating international working groups with precise duties, the group is able to introduce new ideas and models capable of conquering new markets. In the last two years, for example, we have focused on the markets of Eastern Europe and Russia and the success we have enjoyed is unprecedented in the history of the group. Currently, about a fifth of our production is destined for that geographic area. Asian countries also represent a great challenge but for the time being we are concentrating ITALIAN VALUE

on consolidating what we have already achieved, given that there are still huge opportunities for growth.”

How important is aesthetics and the Made in Italy brand for your product?

N. M.: “I believe that they are extremely important, but they are not everything. Abroad, many people recognise in Italian products high quality and design and we definitely stand out in those areas; however, we also have to consider that our product will be copied by foreign competitors with much lower labour costs. The positive side is that this constantly pushes us to innovate, proposing new technologies and, above all, highlighting the originality of every product.”

In what way?

A. B.: “Our plan of investments in infrastructures, technologies and staff training has allowed the company to strengthen its presence in nineteen countries around the world, with coverage of over sixty nations.

Now, thanks to the consolidation on a global level, we are able to anticipate trends and to influence the market itself. The result? Over 600 million stoppers produced and sold throughout the world in 2013 alone.” \\\\\ RENATO FERRETTI FEBRUARY 2014

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EXPORT ETTORE BENEVENIA

METALS RETURN TO EUROPE

According to Ettore Benevenia, silver and copper processing is leaving behind developing countries and returning to the old continent.

Quality is overcoming low cost Quotation of price of silver over last 5 years

50.00 35.00 25.00 15.00 5.00 Jan 09 – Jan 10 – Jan 11 – Jan 12 – Jan 13 – Jan 14 Source: New York Stock Exchange

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ue to its strong connection to finance, the global metals market has been severely affected by the economic recession that began in 2009. As a result, in recent years, fluctuations in the prices of raw materials have changed the scenario of the key protagonists in the field, casting aside the main players and favouring many small businesses. According to Ettore Benevenia, director of the Italchimici Group, from Brescia, in Lombardy, Northern Italy, this phenomenon is benefiting Europe. "Low quality creates costs far in excess of those

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Italchimici is located in Lumezzane, Brescia, Northern Italy

incurred by high quality and many of the processes that have migrated, in recent times, to non-European nations are, in fact, returning to Europe". It is against this background that the Italchimici group has opened a sales office in France and an office and warehouse in the Czech Republic.

The Italchimici group includes two subsidiaries: LMP and Copper Italia. The group has become a key player on the international markets in trading metals, electro-plating products and semi-processed copper and silver products.

"LMP creates semi-processed silver products used in the production of cutlery, tableware and trays, in the form of extremely thin plates and strips (up to 0.03 millimetres in pure silver). These can also be used to produce blanks, coins, ingots and medals. The product range is completed in the industrial sector with the production of silver filaments, powder and pipes". Copper Italia, on the other hand, specialises in manufacturing semi-processed copper products. “By casting top quality cathodes, we are able to produce wire rods of different diameters (from 8 to 22 millimetres) which are, in turn, re-used in subsequent extrusion and then wire drawing processes. We also produce flat or round copper bars, used for transporting energy or for moulding, but also alloys for special applications (OFHC oxygen-free copper or DHP copper).”

In order to deal with the crisis, Italchimici split its strategy into two phases. “The first consisted of choosing the areas on which to focus our main actions. The second involved selecting the most reliable local partners in order to implement those actions concretely. The result is that

www.italchimici.it

Italchimici today makes more than 50% of its turnover from end consumers located outside Italy. Europe is worth 70% of its export share while the remaining 30% is distributed among developing countries. Geographical repositioning on a commercial level is not our only quality. The fact that we belong to the Lombardy region certainly brought added value to the gravity of our effort. Brescia has, indeed, always been a city of metals, due to the mental training of its workers, but also due to its ancillary industries, which contribute to that efficiency without which accessing many markets would be impossible.”

Further impetus comes from the investment in research and development and technologies. "Our continuous silver casting plant, with the possibility of obtaining a strip of 500 millimetres in width, has allowed us to impose ourselves on the market as suppliers of that width of plates and strips, which is a format that reduces processing waste. And in the sector of washers, coins and medals, we are assessing new processes that allow us to reduce costs, whilst maintaining quality at the same level.” \\\\\ LUCA CÀVERA FEBRUARY 2014

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EXPORT MATTEO OLDANI

Omar Technology is based in San Donato Milanese (Milan)

MILITARY TECHNOLOGIES On one hand, helicopter ground support and on the other, medical emergency assistance: peacekeeping according to Milan’s Omar Technology e have taken part in all peacekeeping operations led by NATO and the United Nations, starting with Somalia in 1992.” This is how Matteo Oldani presents Omar Technology, a company operating in two main sectors: military aeronautics and medical emergencies. For the first, Omar designs and produces equipment for the ground support of helicopters (G.S.E.), in particular trolleys for helicopter transport, towing bars, and elevating platforms for helicopter assistance. “The main characteristic of these trolleys,” Oldani explains, “is that a single operator can move the helicopter from the hang-

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WE HAVE PARTICIPATED IN ALL PEACEKEEPING OPERATIONS LED

BY NATO AND THE UNITED NATIONS

er to the helipad on his own.”

In the medical emergency sector, this Milan-based company has designed and constructed a series of expandable containers for medical use, such as operating theatres, intensive care units, radiology and analysis laboratories and pharmacy and sterilisation containers. In other words, everything necessary in the deployment of field hospitals or clinics during peacekeeping operations or during various emergencies due to natural disasters such as earthquakes or hurricanes.

“Our structures are unique,” Oldani continues, “in that they allow a single operator with a remote control to expand the walls of the containers through a hydraulic system to construct a 31 sq.m room from a classic transport container of ISO 20”. Our equipment has been subjected to all technical tests in military centres and is built in conformity with all NATO Military standards (STANAG).”

Both sectors covered by Omar Technology have, over the past year, grown well, despite some difficulties. “In the aeronautic sector,” the owner of Omar Technology explains, “we have recently achieved some important satisfactory goals.

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Today we are working in direct collaboration with countries such as Sweden, Germany, Belgium, the Czech Republic, Greece, South Africa, Thailand and Turkey. In the rest of the world, we have the commercial support of the AgustaWestland company, which markets our products as accessories for its helicopters. This means that we are present almost everywhere: the United States, New Zealand, Saudi Arabia, Australia and India.”

Following the 1992 mission in Somalia, Omar Technology products have been used in Mozambique, Albania, Kosovo, Afghanistan, Iraq and recently in Chad. “They have always achieved excellent results,” Oldani confirms, “both under the medical profile as well as in terms of logistics and reliability. It is no coincidence that the top value we are most often credited with is that of problem solving. Our equipment stands out on the various markets for its easy use, the small number of staff required to use it and above all for its reliability. For example, a single worker can set up our operating theatre container (unloading the lorry, opening the walls and connecting the medical equipment) in about 30 minutes.” \\\\\ REMO MONREALE FEBRUARY 2014

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EXPORT FRANCESCO MAGAZZENO AND GILDA FAINO

THE ART OF RESTING IS ITALIAN Technologies, materials and skills are the basis of Neapolitan Afg’s experience in mattresses which have conquered Europe and America

he technology evolution has gradually redefined the concept of rest. The production of mattresses in recent years has undergone frequent and sudden changes in search of solutions capable of providing really restful sleep. But chasing the latest news in this search is not enough to manufacture better products. Also in this case, the Italian craft culture is able to recalibrate its own knowledge in response to completely unknown materials, as in the case of Afg Materassi located in Montecorvino Pugliano (Salerno, southern Italy), whose owners,

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Francesco Magazzeno and Gilda Faino, have been working in this sector for almost forty years.

On an international level, among the current trends, Magazzeno has noticed a predilection for memory foam and removable cover mattresses. “The term memory – explains Afg’s owner - is referred to a kind of synthetic slow-recovery foam. Recently, we have been using this material a lot, but it is not the only one. The most advanced technologies have contributed to creating new materials, which, while respecting the ecosystem, allow for maximum comfort during sleep. For this reason, we offer a wide range of multi-layer plates: from Mind Foam® to mattresses enriched with essential oils, to those with a layer of mallow or orange extracts. What is sure is that the studies we conduct on raw materials guarantee prodFEBRUARY 2014

MEMORY FOAM IS A KIND OF SYNTHETIC SLOW-RECOVERY FOAM. RECENTLY, WE HAVE BEEN USING THIS MATERIAL A LOT

ucts of a much higher quality compared to those available on the market.”

As technical possibilities increase, so do customers’ needs, therefore the main task is continuing to learn. “Experience – explains Faino- is the basis from which we start every day. In this way our craftsmanship has crossed the national borders: 90% of our production is destined to go abroad, in particular to France and the United States.”

According to Magazzeno and Faino, one of the most important aspects is becoming aware of the different needs each individual might have during sleep. “The possible combinations - explains Magazzeno- are higher in number than expected: it depends on the favourite resting position, on the degree of skin perspiration, as well as many other disorders such as backaches, or cervical or joint pain. For each of the conditions that could develop there is a kind of mattress that best meets one’s needs. This is the reason why we have inserted a questionnaire on our website, which is becoming a more and more useful tool from a strategic point of view, at the end of which the most suitable mattress is suggested. But this information is just an indication, ours is a small enterprise whose ITALIAN VALUE

Afg is based in Montecorvino Pugliano (Salerno, southern Italy)

strength is in production flexibility: we follow our customers step by step according to their wishes.”

Italian products’ authenticity has favoured the Neapolitan enterprise with exports. “But the same rules are not applicable everywhere - specifies Faino -. We customise the production daily according to the reference market.

Each nation has its own particular needs. In the near future there will be negotiations with many other countries, including Denmark, Korea and Senegal: we will try to satisfy their needs, too.” \\\\\ REMO MONREALE FEBRUARY 2014

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FASHION FEDERICO CESCHI

THE CHARM OF HIGH QUALITY TAILORING The luxury of made to measure clothing returns to Milan.

Federico Ceschi’s strong point is research into fabrics and unusual details that highlight the exclusivity of the garment

reating your wardrobe in a imperturbable atmosphere, including shoes, shirts and ties. All strictly made to measure, selecting the most exclusive English and Italian fabrics. You still can in Milan, at N.H Sartoria.

N.H stands for “Nobil Homo”: two letters that express a style which makes the tradition of hand-made clothing unique. Two letters which reflect “true” nobility, that of he who, by choosing a sought-after collector’s fabric, characterised by a series of often hidden details, reveals his personality, his way of living and thinking through how he dresses. Or rather, the noble individual style of he who chooses the very best to valorise himself and express his taste.

“At my tailoring shop,” says Federico Ceschi a Santa

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Croce, a noble Venetian who has decided to share a world made of timeless details and elegance in a “nonbrand name” – “men come from throughout Italy, Belgium, France, Germany, Switzerland and the United Kingdom, as well as from Japan and Hong Kong. We are always looking to interpret individual styles and tastes, without ever betraying the Italian mark. In fact, it is always important not to omit the principles of style, quality and, above all, of the traditional Italian crafts which distinguish us. Normally, the client is very impressed by our line and by the look that characterises and emphasises his personality.”

N.H Sartoria carefully selects the fabrics it uses. “In most cases,” Ceschi a Santa Croce continues, “I follow my personal taste and the high quality that best suits our traditional processes. Our fabrics come from the most important and traditional drapery manufacturers in Italy, England and Scotland. The creation of a made to measure garment always starts with taking the client’s measurements, followed by the choice of fabric. For 15 days, FEBRUARY 2014

← Federico Ceschi a Santa Croce of the N.H Sartoria in Milan

THE FABRICS COME FROM THE MOST IMPORTANT AND TRADITIONAL MANUFACTURERS OF ITALY, ENGLAND AND SCOTLAND we carry out all the necessary fittings until we have reached the ideal parameters for quality.”

Following these principles, N.H Sartoria has succeeded in creating unique and unusual models. “Our tailoring is also characterised by some distinctive traits such as the unlined jacket, which fits almost like a glove. In fact, our jackets are created by our master tailor Domenico Bombino, who works according to the legendary tailoring tradition of Puglia, which puts the cut at the forefront. These jackets follow the natural shape of the body, with no need to resort to internal structures that normally add rigidity to the garment. But above all, once on, you forget you are wearing a jacket and tie.

Amongst the most interesting are the Ulster model coat, ITALIAN VALUE

the dinner jacket (strictly midnight blue), morning suit and last but not least, and perhaps the most difficult, the tailcoat for an orchestra conductor.”

Another unique aspect of this legendary Milanese tailor is the relationship that is created with the client. “If a client decides to purchase a suit, we can then send it to his home, anywhere in the world. The important thing is that he come to us for at least one fitting. We can contact clients throughout the world through our website and the various social network channels. Our clients can also send us their personal choice of fabrics, as long as they are of the same quality as those chosen by us, for which we always give a full guarantee.” \\\\\ LUCA CÀVERA FEBRUARY 2014

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FASHION CONFEZIONI BARBON

FROM RESEARCH TO THE COLLECTION

In high fashion, quality becomes the base and is no longer the destination. Katia Stefanuto’s vision.

And a reflection on low cost products

urning ideas into matter, with tailoring processes and careful attention to the details and fit. Without excluding the use of the latest technology and tools. This encompasses, in a nutshell, the knowhow of Confezioni Barbon, a Veneto-based manufacturer of women’s clothing. “We mainly work with cut and manufactured jersey, making T-shirts, skirts, jackets, suits and any other product in this fabric, on behalf of prestigious names in Italian and international high fashion. As well as creating the garments from the client’s designs, we supervise each phase of the process: from the samples to production.” Explaining the company’s specialisation is Katia Stefanuto, who manages Confezioni Barbon with her sisters, as well as taking care of the creative study of the design patterns and research into materials. “Our clients just send us a sketch of the design, which tells us how the garment will be placed with the brand’s collection and how to interpret it. The rest of the work is entrusted to our design and pattern making office. We research the materials, design the paper patterns, manufacture the garments and build the collection internally (to protect the exclusivity of each collection) and then move onto the various phases of production, right up to delivery of the finished garment.”

The attention the company pays to each detail of the manufacturing has won over the market. “It is no longer enough to focus on the quality of the manufac-

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Distribution of Italian fashion sales in 2013 75%

Other countries

25% Italy

Source: European Commission

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→ From right to left, sisters Paola, Katia, Monica and Lara Stefanuto, directors of Confezioni Barbon in Vascon di Carbonera (Treviso, Northeast Italy)

TAILORING, MANUFACTURING, AND THE CAREFUL ATTENTION TO DETAIL AND FIT DO NOT EXCLUDE THE USE OF STATE OF THE ART TOOLS AND TECHNOLOGY turing and the finished garment,” Katia Stefanuto con- different brands, we are unfailingly pushed to adapt tinues. “Now, clients ask for more: flexibility, service, our knowledge, to improve it, to do research and acquire availability, collaboration, speed and reliability in de- new technology. And this keeps us competitive and interlivery times. You need to get on the client’s wavelength. esting for the market.”

In our case, this is a necessity, as we manage various According to Katia Stefanuto, the establishment of multibrands and lines and, moreover, we have a very mixed national chains of low-cost clothing does not represent a assortment of clients ranging from the classically styled risk for high quality Italian productions. “At a time when brand to another with an extremely refined, high fash- unambiguous fashion trends cannot be found, having ion taste. Each one requires of us a different range of more product levels on the market is a purely democratic ideas and philosophy. This is stimulating. Having many phenomenon. Besides, there are still those customers clients is a way to increase our skill set: working with who want, and can afford, garments of superior quality rather than mass produced goods. And, through the mediation of great national and international brands, Italian www.confezionibarbon.it manufacturing still has a lot to offer in the production of this type of garment.” \\\\\ LUCA CÀVERA ITALIAN VALUE

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INTERIORS GIOVANNI PEGORARO

THE DYNAMISM OF LIVING

A focus on details and innovative combinations for cosmopolitan furnishings. Accessories designed for working, sharing, relaxing and embracing

reativity, technological innovation and design culture. These are the keywords of Infiniti, the latest brand created by the OMP group, which offers furniture accessories (tables and chairs) designed for working, sharing, relaxing and embracing. The design, expressed as a fully-fledged sensorial experience, is created by merging different places, cultures and lifestyles. The materials do the rest: metal, plastics such as polycarbonate, SAN, nylon and polypropylene, and FSC (Forest Stewardship Council) certified wood. “Every design - says Giovanni Pegoraro, at the helm of the OMP group - is created to be useful and to respect the health of the body, to offer pleasure to the eye, to have intelligent solutions, to last over time and to ensure recyclability. Infiniti's cosmopolitan spirit is expressed in a single mission: to offer objects that belong to the everyday life of anyone wherever they are located, be it Barcelona or New York, London or Tokyo, Berlin or Venice.”

What is the design philosophy behind Infiniti?

“Our designers are inspired by dynamic, youthful and lively values. Like energy, meaning a set of shapes and colours that interpret a contemporary rhythm and add vitality and cheerfulness to living spaces. Dynamism, a typical of way

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of thinking that is open to surprise and change. Style, expressed by way of the focus on details and innovative combinations between materials and colours. Creativity, or the will to be daring, to surprise and to have fun. Innovation which, for Infiniti, means pushing the boundaries, searching for new shapes and materials. And, finally, emotion, because what Infiniti offers is a journey into the world in order to grasp its colours and feelings, focusing on the key moments of a life well-lived.”

How are the different materials treated?

“Wood is treated with care and experience and used in threedimensional plywood, a perfect solution for creating original and aesthetic, cutting-edge shapes. We want to proFEBRUARY 2014

→ Giovanni Pegoraro, at the helm of the OMP group of Castello di Godego, Treviso, Northeast Italy

tect the environment and to improve forest management worldwide, so we only use FSC certified wood. For metal, we use technologically advanced systems that allow us to produce customised solutions, by way of laser cutting. The technology applied to plastic materials is also innovative: we have co-injection moulding systems assisted by gas or bi-material co-moulding, both providing a very high level of customisation.”

What is the overall organisation of your group?

“The group includes four production companies: OMP, Metalseat, OMP Plastic Division and OMP Wood Division and

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numerous subsidiaries spread throughout various countries.

All the subsidiaries have their own sales network and thanks to their location, they can meet the specific requirements of each market. However, we all follow a single strategy, which is established by the Italian management. At the same time, albeit producing different items, the various production bodies of the group share the same soul, which is focused on research and development, on the study of materials, on the implementation of innovative technologies and on attention to ergonomics and functionality. In addition to the positive synergies that arise from the close collaboration between our four companies, a further contribution is added by designers and product engineers from specialist engineering firms.”

You also have subsidiary companies outside Italy. How are they distributed?

“With the goal of being present on an international level, the group has made investments in acquiring subsidiaries in various areas of the world. These also have sales networks - but they are always coordinated by sales management at the Italian headquarters. However, thanks to this presence in different countries, as well as distributing our products created in Italy, these subsidiaries are able to satisfy specific requirements most appropriately, as they are able to produce internally certain products relevant to that particular market, achieving savings in terms of costs and delivery timescales. We have a company in Mexico, another in Brazil, yet another in Columbia and, finally, one in Russia, in Vostok.” \\\\\ LUCA CÀVERA FEBRUARY 2014

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TRANSPORT AURELIO ZAMBONI

TRANSPORT AND FOOD SAFETY The European fruit and vegetable market from the point of view of distribution. Aurelio Zamboni explains prospects, difficulties and solutions developed by Italian hauliers

Zamboni Transervice is located in Vigasio (Verona, Northern Italy)

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Trucks Zamboni Transervices fleet of vehicles covers the entire Italian territory

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s far as food safety is concerned, Italy is one of the strictest countries. This obviously affects the habits of all operators working in the different supply chains and, thus, producers dealing with the Italian market. The fruit and vegetable sector, as it handles highly perishable products, represents one of the most complex areas in this regard, especially when it comes to distribution. In the description given by Aurelio Zamboni who, together with his brother, manages Zamboni Transervice in Vigasio (Verona, Northern Italy), the characteristics an enterprise dealing with this type of transport should have are not easy to meet. “We deliver fruit and vegetable products throughout the country and our establishment in the province of Verona is the headquarters. We carry out the majority of our work – explains Zamboni – for German, Dutch and Spanish companies. We have been able to maintain these stable collaborations across Italian borders thanks to the guarantee we offer in terms of safety during transport: Dasa-Raegister En Iso 9001/2000 certification proves our ability all over the world. On a monthly basis we carry out a specific selftesting procedure, HACCP (Hazard Analysis and Critical Control Point), on the vehicles and goods stored. The same check, but more in detail, is carried out yearly by a certified external chemical laboratory.”

Given the frequent relations with European businesses that need to transport goods along a long-distance route between northern and southern Europe, Zamboni enterprise offers a logistics and transhipment service. “We

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© Photo Lara Mariani

THE PRODUCERS ENTRUSTING US WITH THEIR FRUIT AND VEGETABLE PRODUCTS COME MAINLY FROM SPAIN, HOLLAND AND GERMANY transfer loads from one truck to another – says the owner – without intermediate storage or deposit stages, in short times and in controlled-temperature conditions, and deliver directly to the final destination. Furthermore, the transport of goods is guaranteed by a fleet of special refrigerated transport vehicles, equipped with advanced systems in order to maintain optimal temperatures and the total control of delivery terms. On each of our trucks, product freshness is perfectly safe: every latest-generation vehicle is provided with the most modern cooling systems to ensure the ideal temperature for the fruit and vegetables loaded.”

To meet the diverse needs of the market in the most complete way possible, this Verona company has developed a series of additional services. “Clients – says Zam-

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boni – who for various reasons cannot preserve their product on-site can ask Zamboni Transervice for an extra service which goes along with transport. In fact, we offer 3,000 square meters of cold storage space with a constant temperature, which is completely dedicated to storing fruits and vegetables, and therefore companies can store their goods with us and then see them put on the market in the way and at the time they have established in their commercial agreement.”

Zamboni also offers “an organised and safe groupage service, which allows clients to deliver the product to different markets and to large-scale distributors throughout the national territory. All this with optimisation of maximum times and delivery costs, while maintaining quality. The service is guaranteed by our internal organizational system: for the past twenty years, from departure to delivery, we have been coordinating a large fleet of refrigerated vehicles, which moves daily across Italy reaching various national fruit and vegetable markets.” \\\\\ REMO MONREALE FEBRUARY 2014

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TOURISM RENZO IORIO, PRESIDENT OF THE NATIONAL INDUSTRY FEDERATION FOR TOURISM (FEDERTURISMO)

Foreigners choose Italy

ccording to the Bank of Italy, in the first

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eight months of 2013 the travel expenses of foreign tourists who visited Italy for personal reasons increased by 4.1% com-

+4.1% The growth in expenditure, compared to the same period of 2012, of foreign tourists in the first eight months of 2013

pared to the same period in 2012, whereas the expenses of Italians on personal trips

abroad was at 4.1% and rose to 1.7% for business trips. stioned leadership over the regions. Functional and To continue attracting tourists and remain competi- operational disorganization is no longer tolerable and tive in the international markets, we evidently need there is the indispensable need to implement coordinaa strategy based on innovation, modern infrastruc- ted management systems also at regional levels and ture, quality services, operator professionalism and

tourism governance based on cooperation between the

greater cooperation between the world of education

public and private institutions.

and the business enterprises. It will take a long time Another goal to achieve is the more widespread and to achieve this.

effective use of new technologies, the web and social

The enterprises and tourist operators have to address

media. For the growth and efficiency of the Italian

the current market but they cannot do so with the

tourist system, new technologies will play a decisive

vision, operational habits and attitudes of the past, role, not only in travel planning, but also for the prosince the times, chosen procedures and purchase

motion of products.

modes have changed. We have to adopt new models.

Furthermore, we have to resolve, as soon as possible,

The various regions have to overcome their mutual

the scarce perception of destination products which is

envy, and in order to expand their dimensions and

the true obstacle besetting Italian tourism: segmen-

capacity to impact society, they have to be connected to ting the markets, innovating the methodology of the a sole network. But if we aim to improve and increase

online approach, strengthening the brands and

Italian tourism competitiveness we need, from the implementing coherent and integrated communicapolitical viewpoint, to acknowledge tourism as the fun- tion. The tourist market has profoundly changed, and damental

incentive

to

achieving

the

country’s

to recover competitiveness we have to acknowledge

economic development. To this end, politics and the these changes by innovating the product and creating public administrations should have a clear and unque- added value.

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SPORTING EVENTS ARE RESOURCES

Tourist influxes due to sporting events or activities are on the rise. For Giovanni Malagò, President of the Italian Olympic Committee (CONI), this is an opportunity not to be missed

↑ The 2012 Olympics opening ceremony in London

→ Giovanni Malagò, President of the Italian Olympics Committee (CONI)

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TOURISM AND SPORTS GIOVANNI MALAGÒ

grand international sporting event such as the World Cup or the Olympic Games is a strategic tool for the growth of the host country in at least three aspects. The first is economic development with an evident impact in terms of employment, combined with the assets inherited in terms of investments in buildings and infrastructure that remain for the use of the local population after the event has ended. The last aspect is promotion of the host country’s image. It would suffice to mention Barcelona which, after the 1992 Olympic Games, moved up, in a span of seven years, from the 16th to the 3rd most popular tourist destination in Spain. Also Germany had its share of positive trends from the Football World Championship of 2006 and rose in overall tourist satisfaction rates. Thanks to the 2006 Winter Olympics, Turin began to change its image as an exclusively industrial city.

The potential for sport tourism, particularly in regards to regional marketing, was analysed during the first edition of the “Tourism for sport” Forum, held last October in Milan. At this occasion, Turkey, Russia and Brazil were cited as examples of countries which look to sport tourism as a powerful driver of growth. In fact, Sochi has hosted the 2014 Winter Olympic Games and will welcome the first F1 Grand Prix of Michele Frangilli, Mauro Nespoli and Marco Galiazzo Russia in October, Bracelebrate their gold medal zil is preparing to host in men’s team archery the 2014 World Football at the London Olympics Championships and the

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Olympic Games in 2016. This is a showcase Italy should not miss out on, stressed CONI President, Giovanni Malagò, with an ambitious objective in mind: the 2024 Olympics in Rome.

The Organization of the 2024 Olympics in Rome is your personal dream. Has the CONI federation already taken the first steps to promote Italy’s candidacy?

“Rome 2024 is the dream of 11 million federation members and most Italian citizens, and represents an important sign of vitality offered to the country’s new generation. Former Council President, Mario Monti, made the decision not to present Rome as a candidate for the 2020 Olympic Games because of the particularly difficult moment Italy was undergoing.

The conditions have now changed, the Olympic Games are an important match to be played because we need to be very ambitious. The CONI federation is

ROME 2024 IS THE DREAM OF 11 MILLION FEDERATION MEMBERS AND MOST OF THE ITALIAN PEOPLE

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The entrance of the Italian team during the 2014 Winter Olympics opening ceremony in Sochi (Russia)

@Coninews

WHEN SPORT IS ADVANCEMENT

in contact with members of the International Olympic Committee (IOC), after which strict and iron-fisted rules of engagement will be laid down. We still have time, however, to make the most suitable assessments: our candidacy will have to be strong and supported at all levels.”

Sport is important in the social, cultural and also economic fields, considering the possible crossroads with tourism. To what degree will the CONI federation commit itself on this front?

“The GDP directly related to the circuit activated by CONI is 1.6% of the total market value of all final goods and services produced in Italy (in 2011). But the value of production activated by the world of sports totals 53,200 million euros, doubling the data of the GDP. Sport tourism is a phenomenon which has undergone a great uptrend in terms of figures despite the economic recession of recent years, and denotes undoubtedly remarkable growth margins. I have repeated this from the day I was elected: sports must be Italy’s driving force. The CONI federation is fully committed to giving importance to promoting participation in competitions at all levels, and the country’s governing system has to ensure important developments in the future.” \\\\\ FRANCESCA DRUIDI 168

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Cortina is looking to become the alpine skiing world capital city in 2019, with all the positive consequences in terms of growth and area promotion possible candidate to host, in 2019, the Alpine Skiing World Championships is Cortina and this would mean a series of tasks but also of benefits for the wellknown ski resort in Veneto, in the north-east of Italy. Enrico Valle, President of the Organizing Committee for the 2019 Alpine Skiing World Championships talks about it.

In what way should the main components of a territory cooperate to organise a sports event?

“As the greatest international events show, working as a team is fundamental. From an institutional perspective, this means involving the territorial institutions (Italian Government, Veneto Region, Province of Belluno, Municipality of Cortina), while from a local point of view the entire social

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TOURISM AND SPORTS ENRICO VALLE

CORTINA HAS BEEN A GUARANTEE IN THE ORGANISATION OF THE WOMEN'S ALPINE SKIING WORLD CUP and economic support is needed. That is to say, economic forces and trade associations, as well as citizens.”

From these points of view, Cortina 2019 has achieved an important goal.

“Yes, it has. A contract named “Multi-party agreement” has been signed among the Government, the Region, the Municipality of Cortina, the Italian Winter Sports Federation (FISI) and the Italian National Olympic Committee (CONI) and guarantees the complete support, both moral and economic, of all the subscribers of the candidacy project. On a local level, a Memorandum of Understanding has been signed among the Candidacy Committee, the Municipal Administration of Cortina, the Trade Associations (hotel managers, cableway installations, retailers, artisans), the local tourist Consortium, schools and some cultural associations. It establishes the complete support of all those involved in regards to the importance of hosting the 2019 Alpine Skiing World Championships, as a flywheel for the economic, tourist and social growth of the entire community.”

What are the strengths which Cortina can count on?

“They are endless. From a strictly organisational perspective, Cortina has been, for over twenty years, a guarantee of the highest professionalism in the organisation of the Women's Alpine Skiing World Cup, reassuring the International Ski ITALIAN VALUE

Federation for competitions at the highest technical level.

Evidence of this is the latest edition in January 2014 of the women’s Alpine Skiing World Cup which, despite the bad weather, hosted 4 consecutive races on the “Olympia delle Tofane” ski run, all carried out in the best conditions possible for the athletes and their staff. Moreover, Cortina can count on breathtaking landscapes and on the uniqueness of its territory, in particular in light of the fact that the Dolomites were recently acknowledged as a World Heritage Site by Unesco. It can also count on the hospitality of its inhabitants, on their customs and traditions, on its local cuisine and its tradition in tourism and organisation of sports and cultural events. All these elements would ensure that the participants of the 2019 Alpine Skiing World Championships will have an unforgettable experience.”

How can the organisation of the 2019 Alpine Skiing World Championships revamp the image of Cortina?

“It would be a jump start for investments in infrastructures and services, both for public funding and private investments. The desired improvements concerning viability, parking, hotels, the cableway system (ski lifts and runs) that the Alpine Skiing World Championships could guarantee would allow Cortina to offer a higher tourist standard, more suitable for the distinctive character of this place.” \\\\\ FRANCESCA DRUIDI FEBRUARY 2014

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THE FACE OF THE NEW PATRON Civic duty also means respecting our cultural heritage.

And when the state cannot do it alone, some citizens are willing to show that if you have more, you can give more

he financial crisis has emptied the wallets not only of businesses and families, but also those of the cultural sector. A sector that, in Italy, was already going through difficult times which the financial crisis has aggravated further. In fact, since 2008 the cultural sector has lost around 1,300 million euro in resources due to the collapse of public finance and the contraction of private investments. The budget of the Ministry of Cultural Heritage and Activities, which in 2013 decreased to 1,500 million euro, in ten years has lost 27% of its worth.

Regarding private investments, things are not much better. Data shows a preference of entrepreneurial patronage for the theatre sector, which benefited from 60% of the overall investments in 2012, while culture received the remaining 40%. Above all, it is the 88 banking foundations found throughout Italy that fund culture. In 2012, in fact, 335.4 million euro was spent on 9,179 interventions for art and cultural activities and heritage. The free endowments of businesses, organisations and private individuals amount to 28.67 million euro.

The regulations regarding patronage in Italy date back to 2000 and mean that any free endowments made by companies to the theatre and cultural heritage are tax deductible.

In Italy, companies (73.5%) donated much more than per-

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sons (just 0.2%) and non-commercial organisations (26.3%), in particular because tax regulations aid this phenomenon.

Italian legislation, in fact, unlike that of the U.S. or other European countries, favours this group of endowments as it makes these gifts fully tax deductible only for companies, while private citizens can only detract 19% of the donation.

In Italy, banking foundations are often the first to support the art sector, promoting initiatives to protect, conserve and valorise works and artists. In many cases, this relationship is strengthened, turning from simple patronage into direct partnership. This is the case of the Gruppo BnpParibas, which has sponsored socio-cultural initiatives for years, or Eni, which has always invested in culture with the aim of reducing the difference between society and enjoyment of art.

In this scenario, the role of small patronage is also growing, that of private individuals and SMEs, especially in those lands visited by lovers of Italian culture from all over the world. In Florence and Venice, for example, small investors are stealing the scene from traditional funders. It is a kind of widespread endowment, not just in Italy but internationally. The Friends of Florence Foundation, for example, founded and run by Simonetta Brandolini d’Adda, since 1998 has assigned 5 million euro to cultural heritage and counts on 3,000 private patrons almost all of whom come from the FEBRUARY 2014

PATRONAGE THE PHENOMENON IN ITALY

U.S., where tax regulations in this sector are particularly favourable. One of the latest salvage operations was the Door of Heaven of Florence’s Baptistery, also funded by 263,000 euro from the ‘Friends’. The ‘Amici degli Uffizi’ association, run by Maria Vittoria Rimbotti Colonna, counts on 6,500 partners, mostly Italian private individuals. In this case, the particularity is the great growth in foreign students and families, especially Americans. In 19 years, the association has carried out 112 restoration and maintenance interventions for the Uffizi and contributed to 115 acquisitions of works. Finally, the young ‘Guild of the Dome’, that reunites entrepreneurs from India, Taiwan, China, Brazil, Mexico, the U.S., Israel and Italy, adopted – at 150,000 euro each – all the panels of the North Door by Ghiberti and the South Door

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by Andrea Pisano, of the Baptistery of Florence.

The most innovative way of contributing to the common wealth, even without having the economic capacity of a tycoon, is crowdfunding. A tool that in many countries is being used more and more. For example, thanks to this system, the Louvre is collecting funds (4 million euro) to restore Samotracia’s Nike. Three of these millions have been donated

by Nippon television and one by French citizens.

But if banking foundations and philanthropic associations have always encouraged private individuals to intervene in managing the cultural heritage, the private individual who intervenes in the common wealth has always been regarded with much reluctance. It is no coincidence that the proposal put forward by the patron of Tod’s, Diego Della Valle, to fund

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the restoration of the Coliseum – perhaps the most wellknown of Italy’s beauties – was met by an unsurmountable wall. It was January 2011 when the Marche entrepreneur announced he wanted to allocate 25 million euro. Two years later, just last December, cleaning and securing work started on the world’s most famous amphitheatre. An operation that paved the way for other, similar initiatives. In fact, in January, restoration was approved for one of Italy’s most-loved and most photographed bridges: the Rialto Bridge in Venice. This time, Veneto entrepreneur Renzo Rosso’s fashion brand Diesel will be sponsoring the restoration project. The sponsoring of monuments – in many ways, a symbol of Italy throughout the world – can guarantee huge returns in image. \\\\\ TERESA BELLEMO 172

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335.4 ml € The resources assigned by banking foundations in 2012 for 9,179 interventions for art and cultural heritage and activities

73.5% Entrepreneurs The percentage of Italian businesses that fund culture. Individual persons, on the other hand, make up 0.2% and non-commercial organisations 26.3%

FEBRUARY 2014

PRESERVING ART HISTORY A foundation that unites philanthropist friends of Florence and art lovers, as explained by the President, Simonetta Brandolini d’Adda

t started with the restoration of the marble statues of the Loggia dei Lanzi outdoor gallery. Then it was the turn of Michelangelo’s David and Ghiberti’s Gates of Paradise to be restored. After that the Crucified Christ of the Master of Figline was returned to the Cappella Maggiore of the Santa Croce Church, in all its majestic beauty. These are some examples of the projects carried out by the Friends of Florence, an international non-profit foundation created in America in 1998. Active since the year 2000, it allows the world’s citizens to donate funds to safeguard and protect the cultural and artistic heritage of Tuscany, and Florence in particular. Simonetta Brandolini d’Adda, the Friends of Florence President, stated that the “friends of Florence are growing, along with the num-

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ber of projects adopted by the Foundation.”

How many supporters of the Friends of Florence Foundation are there?

“About 3,000, mostly Americans but also Canadians, Britons and other nationalities. We would like in the near future, to open a Friends of Florence group also in Hong Kong and Singapore and thus involve the Asian countries.”

How about the Italians?

“There are five Italians on the Friends of Florence Management Board, including the Marquess Piero Antinori and Marchioness Rosaria Frescobaldi. The percentage of Italians adhering to our projects is quite small, also because in Italy those who donate to the protection of artistic heritage do not receive any tax benefits, as they do in America.”

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PATRONAGE FRIENDS OF FLORENCE

↑ The Uffizi Tribune, restored by Friends of Florence

← Florence, Italy, Duomo inside Santa Maria del Fiore

With what agencies and institutions does the Foundation cooperate to choose the projects to be financed?

“We work with many restorers, the government’s Superintendence Office for Cultural Heritage, museums, the Fondo Edifici di Culto (Sacred Buildings Fund) and the Town Hall.

We cooperate with the Horne Museum and many churches, such as the Opera di Santa Maria del Fiore and Opera di Santa Croce. We receive many suggestions in regards to the interventions to be undertaken. We arranged with the Florence Hall of Art and Restoration, starting in 2012, to offer a prize in the form of a sponsorship of 20,000 euro to be given for the restoration of a cultural heritage of Florence.”

Is the Chiostrino dei Voti one of the next projects of Friends of Florence?

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“Yes, we are already working on the Chiostrino dei Voti at the Santissima Annunziata Church, and the project will cost around 400,000 euro, including the restoration of the colonnade: the frescoes, architectural sections, sculptures and other items. For over 10 years now the Foundation has been working simultaneously on about 14-15 projects. The restoration of the colonnade may be defined as a ‘major project’ in that it involves a great number of donors. There are other smaller projects that are backed by a couple of donor friends.”

What other projects are you involved in?

“The Cantoria di Luca Della Robbia, the Crucifixion of Beato Angelico in San Marco and the Colonnade of the San Marco Museum and Sant’Antonino. Furthermore, we are workFEBRUARY 2014

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→ Crucifix of the Master of Figline conserved above the altar of the Cappella Maggiore in S. Croce Church in Florence

↓ The “Door of Paradise” created

Antonio Quattrone

by the sculptor Lorenzo Ghiberti

ing on the studio for the Office of Design and Prints of the Uffizi, on the Annunciation in the Church of Santo Spirito and the restoration of the Bronze crucifix of the Giambologna Chapel in Santissima Annunziata. Lastly, the Foundation is monitoring the restoration project of the Madonna della Misericordia in Bigallo Museum which includes one of the oldest representations of Florence and the Baptistery.”

What do you consider to be priorities for Florence in terms of the safeguarding of its artistic and architectural heritage?

“We have to fight all forms of decline, with a constant commitment towards protecting the monuments and works of art. The Italian State and Municipality of Florence have to allocate more resources, but above all they must maintain the projects already accomplished. Maintenance is fundamental in all the Friends of Florence projects. For example, since 2004 we have been funding the Accademia Gallery for 176

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continuous operations of analyses and cleaning of the sculptures in the museum, including the David and the Prisoners. Another priority regards civic education: we need to teach it from the early elementary grades onwards, including art history. It is important to instil historical and cultural heritage in our youth. In this way, the new generations will take on the commitment to conserve the historical centres.”

The Anglo-Saxons, and particularly the Americans, have historically and culturally had a privileged bond with Florence. How come? Why do they commit themselves to protecting the artistic heritage of a city that is so far away?

“Many find the beauty of a city created on an approachable scale very fascinating. Moreover, the Anglo-Saxons somehow recognize the roots of their culture in Florentine architecture, art and history, which build and define their own mindsets and ways of seeing the world.” \\\\\ FRANCESCA DRUIDI FEBRUARY 2014

Gianmarco Chieregato/Photomovie

PATRONAGE FRANCA COIN

← Franca Coin, president of the Venice Foundation

PROUD TO BE PART OF MAJOR RESTORATION PROJECTS “Passion is our first commandment,” highlights the president of the Venice Foundation Franca Coin, “and is vital if we wish to transmit interest in a work of art and its conservation”

o passion, no value’ is one of the principles at the base of the Venice Foundation. “Passion,” Franca Coin explains, “stimulates curiosity, knowledge, spirit and a sense of belonging; it gives life to our desires and above all gives us the courage to participate in great projects, perhaps with little economic contribution but great moral commitment. No one can fund an entire restoration project, but our individual contributions – big or small – combined in a single mission, can do miracles.” The Venice Foundation has funded many restoration works in 17 years of activity, but true micro patronage started in 1998 with the restoration of over 60 frescoes by Giandomenico Tiepolo kept in

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Ca’ Rezzonico (one of the most famous buildings in Venice), for an overall expense of over 500 million lire (approximately 260,000 euro) - frescoes that today are the museum’s main attraction. Next, the Venetian foundation will be committed to supporting the “Mission Fortuny”, the Correr Museum and the “Friends of Venice Italy”, the new corporation established in the United States.

To which other interventions has the principle of micro patronage been applied?

“We have put the principle of micro patronage to work in another three interventions. The first one regards the ‘On the wings of angels’ project, for the restoration of the mosaic of the Dome of the Creation in St Mark’s Basilica. A long and minutely-detailed restoration - funded by four imporFEBRUARY 2014

Stefano Provinciali per Corest

↑ The model of the “Teatro delle Feste” after the restoration (Venice, Fortuny Palace Museum)

www.venicefoundation.org/inglese/vif.html ITALIAN VALUE

tant concerts organised by the Basilica – which lasted around three years, and involved around 2,400 people. The second regards the ‘Gleam Team’ project, for the restoration of the gold leaf in the roof of the Ducal Palace of Venice’s Main Council Hall. The hall’s large roof, approximately 1,350 square metres, was perfectly divided up and partners and friends of the Venice Foundation were given the chance to adopt a square metre through donations chosen among three different categories. The idea of ‘adopting’ a piece of Venice and protecting it over time not only interested our most regular partners but also many people outside of the Foundation, who now follow us constantly and generously, such as for example the students of the Eugenio Montale College of San Donà di Piave.”

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Archivio fotografico Procuratoria di San Marco, Venezia

←

A detail of “The Cupola

of the Creation”

→ “The Cupola of the Creation”, the cycle of mosaics depicting scenes from the Old Testament in the Basilica of San Marco (Venice)

MICRO PATRONAGE IS THE PARTICIPATION OF EACH INDIVIDUAL WHO, IN HIS OR HER OWN SMALL WAY, CAN FEEL PRIDE IN CONTRIBUTING TO THE SAFEGUARDING OF A WORK OF ART

‘Mission Fortuny’ is the third of the shared patronage interventions.

“This project aims to restore five of Mariano Fortuny’s works preserved in the Palazzo Fortuny Museum: the model of the Theatre of parties, the wall paintings in the atelier, the Fortuny Theatre Projects Album and the model of the Bayreuth theatre and fabric preparatory designs. Of these, the first four have already been restored while the fifth will be restored shortly. Fund-raising for the restoration of the two theatre models have encouraged our desire to further sensitise art lovers and fans of the city of Venice. This project has confirmed that, today more than ever, our art and cultural heritage is truly a part of each of us and each one of us can promote and protect it.”

So what is micro patronage?

“Micro patronage is the participation of each individual 180

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person - rich in ideals, ethical tension and constructive collaboration – who, in his or her small way, can be proud of contributing to the protection of a work of art. Great projects (that otherwise would not be finished) unexpectedly become attainable goals through small affordable donations, making it so that micro patronage spontaneously turns into shared patronage. As each work of art is made up of varied and multiple elements that produce something unique and unrepeatable, the Venice Foundation is also like a mosaic, made up of many tiles (our partners and supporters) that together participate in safeguarding the wonders of Venice, and not only Venice. Our patrons make the restored art their own, they visit it, they keep an eye on it, it feels like it is theirs.”

On 29th October, Palazzo Mocenigo at San Stae was FEBRUARY 2014

Procuratoria di San Marco, Venezia

reopened. How have the ancient rooms of this palace acquired new life? And what did the Venice Foundation and its patrons contribute to the renewal of the premises?

“The reopening of Palazzo Mocenigo is, without a doubt, an important goal reached by the Foundation of Civic Museums of Venice which strengthens the cultural area of Venice that encompasses Ca’ Pesaro and the Museum of Eastern Art, the Prada Foundation, the Museum of Natural History, the Scoletta dei Tiraoro e dei Battioro, which often hosts art exhibitions as well as conventions, and the House of Cinema. The Venice Foundation and its partners have supported this project once more in the conviction that restoration is important and giving new life to works is vital. Today, Palazzo Mocenigo reintroduces itself to the city as a Venetian house, in which furnishings, fabrics, paintITALIAN VALUE

ings, porcelain, clothes and now even perfumes, narrate the history of our city and those who built her, lived her and gave her splendour.”

How has patronage evolved over the years in the cultural heritage system?

“If we distinguish between sponsoring and patronage very little has changed over time. The Venice Foundation talks of patronage, small or large as it may be: donating without asking for anything in return, if not the pride of belonging to the organisation and the awareness that our history, our cultural and environmental heritage, its conservation and the protection of common property is the responsibility of all of us, as it belongs to us. And that is what the Venice Foundation has been doing now for seventeen years by actively collaborating with the the Foundation of Civic Museums of Venice.” \\\\\ RENATA GUALTIERI FEBRUARY 2014

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THE FAMILY JEWELS Different in personality, culture and lifestyles. With a common destiny. They are the heirs of the Agnelli family: John and Lapo Elkann and Andrea Agnelli. Although young, they can already boast of significant successes in business

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PORTRAITS THE NEW AGNELLI GENERATION

he great Agnelli tree, which resembles a prosperous weeping willow, due to the paradoxes of life and the crossroads between wealth and suffering, has two branches of brothers. The first is known as the Avvocato ("Lawyer"), Gianni; the other is called Umberto, and is known as the Dottore ("Doctor").

Let us look closer at them. The elder branch is everted, a mix between elegant madness and extreme consideration. The Avvocato in fact produced John and Lapo Elkann, whose father Alain, a writer and cultured intellectual, is Parisian, son of the chief rabbi of that community. (There is no longer a green shoot - and at this point the willow is knotted in a stifled cry - who was called Edoardo, the Filosofo ("Philosopher"), son of Gianni. Edoardo, who took an interest in mysticism, set his sights on the sky and fell inside it, jumping from a bridge in 2000, at Fossano, near Cuneo, too much a dreamer to see life like his industrialist family).

The younger branch, that of the Dottore, produced Andrea.

Young, promising, bourgeois, like his father Umberto. (That branch has a huge scar. It is positioned right where the strongest and most beautiful scion emerged, Giovannino, struck down at age 33 by cancer just as he was running like lightning to give momentum back to the trunk, and to a whole world).

John, Lapo. There is an anecdote about them which explains how difficult it is to be real men when you are born into a family of privilege. The two teenagers were on holiday with their family - maybe Ginevra, the third born, was also there - in a beautiful hotel on one of the islands in the Gulf of Naples. Needing to leave, the father asked them to collect their things. So they came down, but had nothing in their hands.

Dad asked: ‘Where is your stuff?’ ‘We left it behind. We are not materialistic.’ Only the children of capitalists can afford not to be materialistic. Moreover, their grandfather always had this allure of sublime distraction, the air of having just stepped out of a red racing car, only to leave it by the road-

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side to go up in a hot air balloon. Yet, there must be something in the blood that transformed them into very practical dreamers and at less than 40 years old, they already have a successful business history behind them.

John Elkann, known as Jaki, is the chosen heir of Gianni Agnelli at the helm of Fiat, the key to the rebirth of the brand. It is he who wanted Sergio Marchionne at the head of the group, opening the way for the strategic acquisition of Chrysler and to the separation of Fiat Auto into two distinct companies. The eldest son of Alain and Margherita, the Avvocato's daughter, he has a boyish face. He was born in New York and, before graduating from the Polytechnic of Turin, he had toured the world: Great Britain, Brazil, France. He joined Fiat's BoD at a very young age, not even having reached 22: ‘The same age as me when I joined the board, in 1943,’ said the Avvocato that day. A decision made to make the continuity also seem symbolic. He is a businessman, bright and charismatic. Colder and more calculating than the Avvocato, he went through the dispute with his mother Margherita over his inheritance without (visibly) batting an eyelid. He is married to Lavinia Borromeo, has a happy marriage and three children: Leone, Oceano and Vita. All his inventiveness was probably exhausted in the names of his children, after which he succumbed to the teachings of that extraordinary and concrete cynic Sergio Marchionne. Far from the gossip, the chosen heir enjoys his successes, not least of which when Fiat took over all of Chrysler: ‘I have waited for this moment since day one, since 2009 when we were chosen to contribute to Chrysler's reconstruction,’ he said. And just a few days later, onwards: he went back to private life, to the snow of Sankt Moritz, where he played with his children and exchanged endearments with his wife. Even the daily newspaper the Financial Times speaks well of him; a few years ago it called him the unexpected heir who had saved the family jewels.

And it hit the nail on the head: Fiat once again has a future. “I arrived in Turin to study engineering in 1994, twenty ye-

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→ Andrea Agnelli, president of Juventus, together with Antonio Conte, Juventus coach

↓ John Elkann together with Sergio Marchionne, managing director of Fiat Chrysler Automobiles Group

ars ago," recalled John Elkann "and there was not a day when, getting ever closer to Fiat, I did not feel like the life of the company was precarious due to the dimensions of the group and for a whole variety of reasons. The acquisition of Chrysler opens up horizons that we could only dream about.”

Another success was the development of the image of the Lingotto-based group taken forward by his brother Lapo. From sweatshirts with the Fiat brand, which restored enthusiasm to a listless symbol, to the advertising of the Punto darting along a desert road, with the background song by Vasco Rossi, “e va bene così, senza parole” (“it is ok like this, without words”). He promoted original, almost revolutionary, ideas and projects, like that of the Grande Punto: a car to be customised “with the flag on the roof and the photo of your girlfriend on the door.” Because "nobody wants to be like the next guy. Your car is your most precious asset after your home.

But it has still got to learn to represent your soul.” For Lapo Elkann, the Fiat had to become a “cool” car again. For him, not prone to using the subjunctive correctly, often in the gossip columns and enduring endless love stories - unlike his brother - his most famous with the Italian actress Martina Stella. Let us not go into his crazy misadventures with drugs and a transsexual. But his greatness is in wanting to get up and dust himself off. And he did so without becoming dispirited 186

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or sacrificing his spark of genial recklessness. He can often be seen around, in his camouflaged Ferrari, frequently parked in no-parking zones, maybe sporting a sky blue suit and animal print loafers. Always trendy and the creator of new styles, he has definitely earned his label as the coolest businessman in Italy. He is a brand. In 2007, with a new stroke of genius, he founded Italia Independent, a clothing and eyewear company. The brand is listed on the Milan Stock Exchange in the list of small and medium enterprises and has a turnover of approximately 30 million euro. Last year it reFEBRUARY 2014

PORTRAITS THE NEW AGNELLI GENERATION

TOGETHER, JOHN AND ANDREA DECIDED TO INVEST IN THE UNIVERSAL TURIN SPIRIT WHICH IS THE MARK OF JUVENTUS corded profits of 600,000 euro. “In Italy, eccentricity is not easily accepted because it means you cannot be put into a box. And I have not the slightest desire to be put into a box.

I think I have that right,” he said in a interview just a few months ago. Of all three “new Agnellis”, Lapo is definitely the one that most resembles, physically, their grandfather. And he has confessed that as a youngster, he wanted to be like him. “He was my example, my role model," he said. “I thought only he existed. Then I realised that granddad was granddad and I am just me. And that is how it should be. Now, I have no desire to be like him, which does not mean that I do not respect him. But I am different.”

And Andrea is different still. From the Dottore's branch of the tree. The cousin of Lapo and John, a huge fan of Juventus, a football club of which he has been president since May 2010.

After a 50 year absence, he is the fourth Agnelli - after his grandfather Edoardo, his father Umberto and his uncle Gianni to play this role. He arrived at Juventus at one of the worst times in its history, seventh in the ranking and in the Europa League almost by chance. Like his father Umberto, he is not a dreamer but thinks only of giving his club a beautiful home, firmly planted on solid ground, with sturdy foundations. He was the one to revive Juventus after its relegation to Series B, wanting strongly to give the team a new and moITALIAN VALUE

dern, welcoming home, tailor-made to its style, in which support would circulate around the "Vecchia Signora" team like a hula hoop.

The suspicion that Fiat wanted to leave, abandoning Turin to the mercy of the vacuum, had as its antidote Andrea's work.

Of course, the context was not easy. There was the aftermath of the match-fixing scandal known as ‘Calciopoli’ in 2006, while the championship itself and the relationships with the owners – that is, with Exor and with John Elkann – were not very good. Then together they decided to invest in all senses in the universal Turin style that is the mark of Juventus: provincially Piedmontese, yet free to be universally cool like the scarves of Gianni and Umberto. So it was precisely John who wanted his cousin to head up the club. Umberto Agnelli, Andrea's father, had been president of Juve at less than 23 years old and was the inventor of the first great Juventus of the post-War period. And John chose Andrea - son of Umberto who, twenty years earlier, had succeeded in the same enterprise - to return the Agnelli name to the top of the club.

On a symbolic level, it was a crucial decision and, above all, not obligated, as it was not due by inheritance. Chosen by Agnelli. Princely.

The weeping willow thus lives on, with these three shoots, flowering happily. It has already cried enough. \\\\\ RF FEBRUARY 2014

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WORLD EXPOS

METAV

March 11-15, 2014 D端sseldorf, Germany

The METAV is the international biennial trade fair for production technology and automation. The keynote themes of the fair include mechanical tools for metal-cutting and forming, manufacturing systems, high-precision tools, automated material flows, computer technology, industrial electronics and accessories.

March

CHINA MED

March 21-23, 2014 Beijing, China

As one of the most important exhibitions in the Chinese medical instruments and equipment industry, the 26th China Med aims to become the prevailing exhibition of this sector in China, a showcase of world-leading products and technologies, and a platform for the advanced academic theories and practice under the tenet of a high-end event and academic authorization.

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FEBRUARY 2014

VINITALY

April 6-9, 2014 Verona, Italy

Vinitaly is the most important exhibition dedicated to Italian wines and is considered one of the most anticipated events for the international wine industry. The show brings together noted business experts and the latest market happenings. Over 150,000 visitors participate in the event, coming in from more than 110 different countries. More than 4,164 exhibiting companies take part in the show, displaying a wide range of wines and spirits.

April

CHIC March 26-29, 2014 Beijing, China

The 22nd China International Clothing & Accessories Fair is expected to be a bridge into the Chinese consumer market.

It will cover more than 100 thousand sq.m., which will be clearly divided into the different segments of menswear, womenswear, kidswear, leather/fur, down jackets, accessories and overseas pavilions.

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INDEX May

June

May 22-29, 2014 Dubai, United Arab Emirates

The International Design Exhibition is the largest interior design exhibition in the Middle East and North Africa. Running for 22 years, Index has attracted over 800 international companies and over 23,000 professionals. The event covers all aspects of interior design from furnishings, furniture, giftware, home goods, lighting, kitchen and bathroom products, outdoor

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living, surfaces and finishes to textile products and more.

Like every year, at the Dubai World Trade Centre there will be the Italian Pavilion called “The Italian Furnishing Square�. Among the many Italian companies, there are Stilema, Luciano Zonta, Bizzotto Furniture, Adriani & Rossi, Fratelli Rossetto, Francesco Molon (Giemme style), Caspani Tino Group and DL Decor.

FEBRUARY 2014

METEF June, 11-13, 2014 Verona, Italy

Conceived as the exhibition dedicated to the aluminium industry, over the years, METEF has completed the business sectors represented , including all metals, and has completed the production chain with: FOUNDEQ - international foundry equipment exhibition, METALRICICLO, dedicated to industrial recovery and recycling of materials, ALUMOTIVE, organised under the patronage of ANFIA, the exhibition dedicated to innovative solutions, components, and technological materials for original equipment used in the transportation industry.

September Furniture China

September 10-14, 2014 Shanghai, China

Furniture China is one of the biggest furniture fairs worldwide.

A lot of innovative and interesting activities held in 2013, such as the China Furniture Design Award, Designer's Morning Tea, Designer’s Night and DOD Forum, are expected to show up again onsite at Furniture China 2014. The show organizer is working on a series of themed activities in celebration of the 20th anniversary.

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