ICE-TDB Textile Training course ( 15-20 march 2010, Suzhou)

1. ICE-TDBTextile Training course(15-20 march 2010, Suzhou) Industrial policy for Textile and Fashion Industry

2. Table of contents • General framework • Industrial policy for sectors and clusters in the ‘90s • Industrial policy for competitive framework and companies’ networks in the 2000s • Industrial policy for the next future

3. General framework Milan - Italy tel. +39 0264119.1 - fax. +39 026610.3667-70info@sistemamodaitalia.it - www.sistemamodaitalia.com CONFINDUSTRIA MEMBER

5. SISTEMA MODA ITALIA WHO WE ARE SMI – Sistema Moda Italia (Italian Textile and Fashion Federation) is one of the world’s largest organizations representing the textile and fashion industry. The Federation protects and promotes the interests of the sector and its members. Sistema Moda Italia represents the entire supply chain on a national and international level and is the official interlocutor in relations with Italian and international institutions and organizations. Sistema Moda Italia maintains relations with government agencies, public administration, and with economic, political, labor, and social organizations. As the national federation for the category, it is composed, on a voluntary basis, of both companies and associations and is well established throughout Italy. SMI is a member of Confindustria, the Confederation of the Italian industrial companies. SMI is also the most important founding member of Euratex, the European Association of Textile and Clothing Manufacturers.

6. SISTEMA MODA ITALIA WHO WE ARE Sistema Moda Italia closely follows the development and changes underway in the textile and fashion industry and assists the Italian companies in the sector through exclusive representation and a wide range of services and activities. The Federation therefore helps the industry solve problems regarding production, technical and legal aspects, and economic and commercial issues. Deeply committed to the development and growth of every area of the textile and fashion industry, SMI also deals with market aspects, promotional activities, and internationalization processes.

7. SISTEMA MODA ITALIA THE COMPANIES AND THE MARKET Sistema Moda Italia, as national federation, represents a sector, with 500,000 employees and nearly 50,000 companies, that is a mainstay of Italy’s economy and manufacturing industry. The overall national turnover of approximately 50 billion euros represents more than 25% of the entire European turnover and is a significant portion of the active balance of trade in Italy. SMI, with its 2,000 member companies, offers a complete panorama of the Italian textile and fashion industry.

8. SMI members and the entire textile & fashion sector 3% COMPANIES 20% EMPLOYEES 50% TURNOVER

9. SISTEMA MODA ITALIA AREAS AND SERVICES Sistema Moda Italia, which is committed to making the textile and fashion sector one of the most important economic resources of Italian industry, is divided into these Areas and Services: • - Federation Business and Membership Development • - Industrial Policies, Economy and Enterprise • - Europe and International Trade Regulations • - Labor Relations and Training • - Research Center • - International Promotion • - Supply Chain Relations • - Legal Affairs • - Technology and Environment

10. SISTEMA MODA ITALIA • FEDERATION BUSINESS AND MEMBERSHIP DEVELOPMENT SMI coordinates and manages the relationship between the Federation and other confederations to improve institutional representation of the sector. It promotes activities to develop membership and to better interpret company needs. It creates the best conditions for promoting Federation activities and services within the system. It systematically monitors company needs and supplies services designed to support company growth in an ever-evolving market. • INDUSTRIAL POLICIES, ECONOMY AND ENTERPRISE To ensure the competitiveness of the textile and fashion industry, SMI studies and promotes sector policies in Italy and the European Community. It also promotes specific policies for the industry on local and regional levels. It analyzes and monitors laws regarding taxes, finance, and business. It also makes proposals to encourage product and process innovation.

11. SISTEMA MODA ITALIA • EUROPE AND INTERNATIONAL TRADE REGULATIONS SMI protects the interests of the sector in the European Community and abroad by remaining in close, continuous contact with supranationalgovernment agencies, associations, and organizations. It monitors and encourages fair trade and participates in EC projects designed to develop trade policies and improve the competitiveness of the industry. • LABOR RELATIONS AND EDUCATION SMI represents the sector during negotiations and stipulation of the national labor contract. It protects the interests of the sector in all issues pertaining to industrial relations and labor laws. • Labor and Social Security SMI provides members with up-to-the-minute information, consulting, and assistance in interpreting and applying the national labor contract and all the laws concerning labor, social security, and welfare. It also organizes seminars on separate issues that are particularly important to the sector. • Education SMI provides members and training centers with data and updates on sector needs and on the offer available to companies on a national level. It furnishes updated information on special financing and facilitations available to companies.

12. SISTEMA MODA ITALIA • RESEARCH CENTER SMI closely monitors statistics and the most important macro and microeconomic variables to support the strategic vision of the Federation and its members, processing data and information to assist in the decision-making process. It supplies all official statistics to government agencies, the media, and trade fair organizations. It promotes entrepreneurship culture through publications and studies for various sectors in the textile-fashion system. • INTERNATIONAL PROMOTION SMI’s goal is to support and strengthen the international reputation of its member companies abroad, through promotional activities that highlight the creativity, high quality and innovation which set apart Italy from the rest of the world. SMI develops and implements initiatives aimed specifically at our target markets in the European Community and around the world, developing and applying effective strategies and tools, including market research, exploratory missions, arranging for new buyers to visit Italy, actions to support industry promotion abroad, workshops and trade fair events. The SMI Office in Shanghai – It coordinates the SMI branch in Shanghai, whose mission is to strengthen the Italian presence in China, by promoting dialogue and partnership between upstream and downstream sectors in the Italian and Chinese textile and fashion supply chain, thus creating business opportunities for textile companies.

13. SISTEMA MODA ITALIA • SUPPLY CHAIN RELATIONS SMI coordinates actions and events for the industry and for its areas and product groups and promotes cooperation and exchange of information and knowledge between member companies in every category represented by the Federation, with the aim to increase their synergies. • LEGAL AFFAIRS SMI provides legal assistance regarding intellectual property and counterfeiting, contracts with sales agents and, in general, supports in drafting of commercial agreements. It also provides information and updates on the latest laws concerning these aspects. • TECHNOLOGY AND ENVIRONMENT SMI studies the latest technological and regulatory developments to anticipate new eco-compatible industrial processes and the development of laws and procedures with a low environmental impact. It organizes special seminars and conferences studying these new developments. It also constantly monitors existing laws on the subject.

14. SISTEMA MODA ITALIA ORGANIZATION: SECTIONS Sistema Moda Italia has grouped its members into 8 Sections, which represent all product categories in the system: • Spinning and preparatory processes • Weaving • Textile finishing • Home linen • Knitwear • Lingerie, underwear and hosiery • Clothing • Miscellaneous textiles and components

15. SISTEMA MODA ITALIA ORGANIZATION: GROUPS The sections are, in turn, divided into 27 product Groups, which include businesses working in the same production sectors: • Cotton and wool spinning • Weaving (furnishing fabrics, apparel fabrics, knitted fabrics) • Knitted and woven fabrics dyeing, yarns dyeing, photo- engraving, printing • Contract/Hospitality • Knitwear for women and men • Lingerie, underwear and beachwear, men’s and women’s hosiery • Men’s, women’s, and children’s clothing, work outfits, shirting, ties and scarves, bridalwear and formalwear • Buttons and components, material for medication, raw cotton, sewing threads All the events and activities of the industry, sections, and groups aim at intensifying joint efforts and the dialogue between companies on issues of broad and/or specific interest for each product category.

16. YOUNG ENTREPRENEURS GROUP SMI’s Young Entrepreneurs Group was established as a meeting place for young entrepreneurs of the textile and fashion industry with common experiences. Through constructive discussion and with the final objective of protecting and promoting sector activities, the Group intends to encourage the training of young entrepreneurs, their participation in the association, and their insertion in the system.

17. YOUNG ENTREPRENEURS GROUP It also aims to promote awareness of the ethical and social purpose of free enterprise and the importance of membership in the association. Entrepreneurs between 18 and 40 years of age can have access to this group.

18. Italian Textile-Fashion IndustryDetailing the specifications: • Manufacturing sector >> export • Complete pipeline • Industrial districts • SMEs - Small and medium enterprises (480.000 empl. and 50.000 companies: 10 empl./comp.)

19. Fibres Industry Spinning Textile Machinery Industry Textile Chemical Industry Weaving Finishing Knitting Clothing Home-textile Retail Final Consumer Italian T&F Industry: a complete pipeline

21. Production: industrial districts

22. many SMEs located in many Industrial Districts spread around Italy many parallel processes made on small scales (NO: sequential processes made on large scales) Complex Adaptive System characterised by Incremental Innovation, Flexibility and Quick-Response

23. Within the Industrial Districts external economies of scale: social sense of belonging, contextual knowledge, specialisation and informal integration fragmentation is recomposed

24. Fashion in the first period of modern era • Very large diffusion in the population; big market - but geographically segmented; • Answering to a need of identification, more than distinction; • Absorbing an industrial “push”; • Permitting large productions of standardized items; • With a product life cycle frequently longer than a single season and geographically replicable (what was fashion in the USA one year could become fashion in Europe next year).

25. Fashion today: a “network” business technical innovation and intense competition, consumer’s need for variety and change • Very segmented diffusion; niche markets – but globally; • Answering to a need of distinction and identification (i.e. status symbol); • Reacting to the consumers “pull”; • Asking for customisation; • very short life cycle of products, even if in some mixed way.

26. T&F Made in Italy: SWot analysis Weaknesses Strengths Size Family business Skills Niche market Specialization Good image (Made in Italy) Internationalization History Clusters (economy of scope) Flexibility Quick response Few global brands Global competition Production orientation Finance Banking System Policy makers’ opinion

27. T&F Made in Italy: swOT analysis Opportunities Threats China/India Energy Costs Transport Costs Consumer Budget Retail Strategy International Growing Market Luxury Niche Innovation & Technology Supply-chain Global Network

28. Italian T&F Industry:a dynamic tradition Fast/flexible Close/interlinked Worth/meaningful

29. Fast Fashion: a successful model suitable for Italian T&F

30. Time to market 18/24 months Up to 2 weeks Turnover average growth (2002-2006) ~ +0,6% ~ +17% Fast Fashion: the business model Fast Fashion Traditional Model Multiplier of average value (from materials to final product) ~ 6/8 ~ 2/2,5 Source: The European House Ambrosetti – Cietta

31. Italian Textile-Fashion Industry(2005-2009)

32. Valore (mld. €) Var.% tend. Valore (mld. €) Var.% tend. 12,066 -10,4 16,780 -20,0 3,514 -23,0 5,706 -26,2 11,074 -16,4 8,552 -4,0 Il Tessile-Moda: l’estero Periodo: Gennaio-Settembre 2009 IMPORT EXPORT TESSILE-MODA TESSILE ABBIGLIAMENTO-MODA Fonte: SMI su ISTAT

33. Export: -25,4% Import: -24,5% Export: -27,3% Import: -21,8% Export: -11,9% Import: -9,2% Export: -21,6% Import: -0,9% Il Tessile-Moda: commercio con l’estero Periodo: Gennaio-Settembre 2009 (Var. % tendenziali) EXTRA-UE INTRA-UE TESSILE ABBIGLIAMENTO-MODA Fonte: SMI su ISTAT

34. Il Tessile-Moda: la congiuntura nel 2009 Fatturato (Var. % tendenziali) Analisi per comparti Analisi per mercato Fonte: SMI su Indagine Campionaria Interna, 2009

35. Il Tessile-Moda: la congiuntura nel 2009 Produzione (Italia) Occupazione (Italia) (Var. % tendenziali) (Var. % tendenziali) Fonte: SMI su Indagine Campionaria Interna, 2009

36. Il Tessile-Moda: la congiuntura nel 2009 Sentiment degli operatori evoluzione congiuntura Rilevazione 2008 (Quote %) Rilevazione 2009 (Quote %) Fonte: SMI su Indagine Campionaria Interna, 2008-2009

38. Il modello giuridico dell’Unione Europea Consiglio dei Ministri e Parlamento Livello Unione Europea Parlamento nazionale Livello nazionale Parlamento regionale Livello regionale azienda

39. Industrialpolicy forTextile and Clothing Industry • General framework • Industrial policy for sectors and clusters in the ‘90s • Industrial policy for competitive framework and companies’ networks in the 2000s • Industrial policy for the next future

40. La politica industriale negli anni 90 • La politica industriale per settori produttivi • La politica industriale per i distretti

41. La politica industriale per settori produttivi 1992 – 1996 Il Piano Nazionale di Ricerca per il settore Tessile ed Abbigliamento(93 milioni di euro al valore attuale) Finanziamento delle attività di ricerca di vari consorzi sulla filatura, la tessitura, la tintoria, la stampa…

42. Criticità Aggregazioni solo temporanee, senza consolidamento di rapporti tra aziende Enfasi solo sulla parte tecnologica Pochi rapporti con le Università e i centri di ricerca Il Piano Nazionale di Ricerca per il settore Tessile ed Abbigliamento

43. Legge sui distretti (1996) • Finanziamenti per la costituzione di comitati di Distretto, con la partecipazione di aziende, sindacati e rappresentanti delle istituzioni • Fondi a disposizioni per creare strutture di servizio attive nei Distretti: centri servizi, centri per la diffusione tecnologica…

44. Criticità Nascita di strutture molto burocratizzate Doppioni con il ruolo di programmazione dello sviluppo territoriale delle Pubbliche Amministrazioni locali Difficoltà ad assumere decisioni operative Difficoltà ad introdurre innovazione (enfasi sulla tradizione) e diversificazione verso settori nuovi e più promettenti Legge sui distretti (1996)

45. Industrialpolicy forTextile and Clothing Industry • General framework • Industrial policy for sectors and clusters in the ‘90s • Industrial policy for competitive framework and companies’ networks in the 2000s • Industrial policy for the next future

46. La politica industriale per fattori e reti di imprese negli anni 2000 • L’assetto normativo europeo • La politica industriale italiana: Industria 2015

47. L’assetto normativoeuropeo:evitare il nazionalismo,potenziare la concorrenza nelMercato Interno • Niente programmi di aiuti e/o incentivi a settori specifici • Niente programmi di aiuti e/o incentivi senza un preventivo controllo della Commissione UE

48. Industria 2015 Progetti di innovazione industrialeper gruppi di imprese(Strumenti di incentivo a bando, con fase negoziale)nuove tecnologie per il Made in Italy(180 milioni di euro nel 2008): • Moda • Arredamento /casa • Meccanica/elettronica • Alimentare

49. Industria 2015:Le nuove tecnologie per la moda Vantaggi: • Risorse ingenti per progetti di ampio respiro (ogni progetto deve prevedere almeno 3/5 milioni di euro di costi) • Possibilità di negoziare e quindi di ampliare la collaborazione con il Ministero

50. Le nuove tecnologie per la moda: un esempio Sistemi informatici di co-progettazione