MADE IN ITALY
Area Centro Studi Textile / Clothing / Fashion Chain
September 2005
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THE ITALIAN TEXTILE AND CLOTHING INDUSTRY
The Italian textile and clothing industry is unique, lively, innovative, and leader in the world.
Its innovation ability represents its main and most lasting competitive advantage.
The “mission” of the Italian fashion system lies in offering original, and very distinctive
products, which meanwhile answer to consumer’s taste and meet his needs. This also implies
a continuous improvement in technical performances of fibres, yarns, fabrics, and finishing.
The success of the whole chain - from the first processes on fibres to fabrics, finishing
operations, and final products for the market - is favoured by the interaction of a
sophisticated manufacturing network, where the strength of each element is at the same time
a condition and a function of the vitality of the whole system.
This dynamic combination of productive, creative, and managing activities involves about
67,500 industrial companies with large, medium, and even very small scale operations. This
unique mix still turns out to be the main point of strength of Italian T/C industry, whose about
540,000 employees contribute to roughly 10% of the manufacturing sector’s added value.
The strong export trend of the T/C industry is shown by the turnover share totalized abroad,
amounting to 62% of total sales. The significant flow of exports ensures a foreign trade
surplus of about 12 billion Euros, which compensate, to a large extent, the country’s deficit in
energy and agriculture.
Besides the value which can be measured in figures, Italian fashion, strongly founded on T/C,
has enormously contributed to the definition of the ideas of Italian “good taste” and “life
quality”, with positive effects on Italian products all over the world.
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MADE IN ITALY FASHION FIGURES IN 2004
Turnover Export Trade balance Enterprises Employees
(Mill. of Euros) (no.)
Textile/Clothing 42 551 26 600 11 691 67 457 543 124
Shoes 7 310 6 196 3 619 7 084 100 934
Leather products 2 600 2 168 1 165 6 400 33 300
Goldsmithery/Jewellery 4 330 3 916 3 011 11 000 47 000
Perfumery 7 414 1 983 719 550 35 000
Glasses 1 877 1 529 1 077 1 180 16 980
Fashion \"Made in Italy\" 66 082 42 392 21 282 93 671 776 338
% incidence on
manufacturing sector's 16,6 14,6 14,8
total amount
Source: SMI on ISTAT, Movimprese, Prometeia and Sector Associations' data
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THE ITALIAN TEXTILE/CLOTHING (T/ ) SECTOR
C
IN 2004 (in current millions of Euros)
2000 2001 2002 2003 2004
Trunover 47 101 47 789 45 889 43 150 42 551
yoy % change 1,5 -4,0 -6,0 -1,4
Export 27 047 28 952 27 989 26 335 26 600
yoy % change 7,0 -3,3 -5,9 1,0
Import 13 173 14 150 14 315 14 244 14 909
yoy % change 7,4 1,2 -0,5 4,7
Trade balance 13 874 14 802 13 674 12 091 11 691
Domestic availability 33 227 32 987 32 215 31 059 30 860
yoy % change -0,7 -2,3 -3,6 -0,6
Enterprises (number) (*) - 73 344 71 840 70 001 67 457
yoy % change -2,1 -2,6 -3,6
Employees (number) (*) - 609 629 596 071 567 032 543 124
yoy % change -2,2 -4,9 -4,2
Structural indicators (%)
Export on turnover 57,4 60,6 61,0 61,0 62,5
Import on domestic availability 39,6 42,9 44,4 45,9 48,3
Source: SMI on ISTAT, SitaRicerca and Associazione Tessile Italiana data
(*) Revised series on INAIL and Movimprese database
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THE WEIGHT OF T/C ON THE ITALIAN MANUFACTURING
SCENARY IN 2004
% weight on manufacturing
sector (2004)
Turnover 9,3
Added value 9,7
Export 9,6
Trade balance 30,9
Source: SMI on ISTAT data
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ITALY’S WEIGHT ON THE WHOLE EUROPEAN
TEXTILE/CLOTHING SCENARY IN 2004
% weight of Italy on EU
Textile/Clothing (2004) (*)
EU 15 EU 25
Turnover 25,0 23,5
Investments 39,9 36,2
Employees 31,1 24,5
Enterprises 73,3 66,5
Source: SMI on Euratex data
(*) - Provisional data
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AN INDUSTRY WHERE LARGE AND SMALL COMPANIES
COEXIST SUCCESSFULLY
The international success of Italian T/C has been favoured by the co-existence,
on an equal status and importance basis, of large companies and SMEs.
The innovation ability as well as the attention to the quality of materials and
processes characterize large concerns, whose brand names can be found in the
shops all over the planet. Medium-sized enterprises are often world leaders in
particular market niches, while small companies are specialized and excel in
one or more specific production stages.
The whole chain is made of about 67,500 enterprises, of which roughly 90% with
less than 15 employees.
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ENTERPRISES, EMPLOYEES AND TURNOVER IN THE
ITALIAN TEXTILE/CLOTHING SECTOR (2004) (*)
Turnover ranges (in million of Euros)
<2 2-10 10-50 >50 Totale
Enterprises (no.) 64 199 2 178 905 175 67 457
(%) 95,2 3,2 1,3 0,3 100,0
Employees (no) 336 110 61 294 82 187 63 534 543 124
(%) 61,9 11,3 15,1 11,7 100,0
Turnover (in million of Euros) 19 200 5 075 9 046 9 231 42 551
(%) 45,1 11,9 21,3 21,7 100,0
Turnover per Employee 57,1 82,8 110,1 145,3 78,3
(in thousands of Euros)
Source: SMI on ISTAT data
(*) Revised data on ISTAT 2001 Census
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The T/C Sector’s
Foreign Trade
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THE ITALIAN T/C SECTOR’S FOREIGN TRADE
The Italian T/C industry is strongly export-oriented: actually, more than 62% of the total
turnover is achieved thanks to foreign markets. The figure of 26.6 billion Euros in foreign
sales totalized last year represents 10% of the whole Italian manufacturing industry’s export
value.
In 2004 net export reached 11.7 billion Euros, i.e. 31% of the whole manufacturing industry’s
trade surplus. Other fashion related products (such as shoes, goldsmithery, leather
products, cosmetics and glasses) accounted for a further 10 billion Euros surplus. That’s to
say that the “Oil of Italy” can roughly completely compensate for the country’s deficit in
energy, food and agriculture.
In 2004, the flows of Italian TC products towards European Union markets (15 countries)
raised by 1.4%, while those towards the 10 new members decreased by 13%. Outside EU25
(which absorbed 54% of total Italian TC foreign sales), exports to USA (third largest market
for Italian fashion system) recorded a drop of 2.6%, Japan lost 8.5%, while Russia (tenth
biggest customer) was the most dynamic market (+11,2%). A significant increase was also
recorded by exports to Hong Kong (+5,1%).
On import side, China has furthermore consolidated its leadership position among top Italy’s
suppliers (+13.7%).
In 2003 Italy was the third world’s exporter of textile products (about 8% of the total amount),
after China and USA, recording a CAGR loss (1995-2003) of roughly 1%. In 2003 among the
main clothing exporters our country was placed just behind China, however showing a
CAGR drop near to 2%.
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FOREIGN TRADE FLOWS OF THE ITALIAN
TEXTILE/CLOTHING INDUSTRY (2004)
Import Export Tr. Bal.
Millions Var.% Millions Var.% Millions
of Euros of Euros of Euros The composition of Italian
T/C’s trade surplus in 2004
T/C TOTAL AMOUNT 14 909 4,7 26 600 1,0 11 691
TEXTILE SECTOR 5 935 0,3 11 583 2,4 5 648
of which:
- Tops 307 -13,7 146 -17,9 -161 Hosiery Yarns
- Yarns 2 056 -5,2 2 442 5,0 386 Knitwear 5,6% 3,2% Fabrics
13,2%
- Fabrics 1 887 2,3 6 286 2,1 4 399 36,8%
- Home textiles 577 12,5 479 4,2 -98
- Other textiles &
special fabrics 1 106 7,2 2 229 1,9 1 123
CLOTHING SECTOR 8 974 7,8 15 016 -0,1 6 042
of which:
- Clothing items 4 826 2,0 8 617 -0,5 3 791 Clothing items
Other textiles and
- Knitwear 3 989 15,4 5 572 0,5 1 583 31,7%
special fabrics
- Hosiery 158 13,9 827 0,7 669 9,4%
Source: SMI on ISTAT data
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TRADE PARTNERS OF THE ITALIAN T/C INDUSTRY IN
2004 (in millions of Euros)
The top 10 customer countries The top 10 supplier countries
3500 2500
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THE MAIN WORLD’S EXPORTERS OF TEXTILE
PRODUCTS (1995-2003)
8,0 Taiwan
6,0
% c hang e o f s hare (1995-2003)
China
4,0
India
2,0 Franc e
Us a
0,0
Italy
-2,0
Be lg ium The bubble 's dime ns io n
indic ate s the impo rtanc e o f the
-4,0 Japan c o untry o n to tal flo ws
Ge rmany
S o uth Co re a
-6,0
0,0 2,0 4,0 6,0 8,0 10,0 12,0 14,0 16,0
% s hare o n wo rld e xpo rt (2003)
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THE MAIN WORLD’S EXPORTERS OF CLOTHING
PRODUCTS (1995-2003)
10,0
8,0
China
% c hang e o f s hare (1995-2003)
6,0
4,0 India
Me xic o
2,0
Be lg ium Turke y
0,0
-2,0 The bubble 's dime ns io n
Us a indic ate s the impo rtanc e o f the
-4,0 Italy c o untry o n to tal flo ws
Franc e
Ge rmany
-6,0
Ho ng Ko ng
0,0 5,0 10,0 15,0 20,0 25,0 30,0
% s hare o n wo rld e xpo rt (2003)
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The geography of the
Italian T/C sector
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THE GEOGRAPHY OF THE ITALIAN T/C SECTOR
This heritage of specialization and this network of relationship find a special form of
organization in the so-called “industrial districts”, the Italian contribution to industrial
organization models. Actually, the Italian fashion industry is located into an archipelago of
specialized districts: Como for silk fabrics, Biella, Prato, and Vicenza for wool yarns and
fabrics, Castelgoffredo for women’s stockings, Carpi and Treviso for knitwear, Empoli for
leatherwear, Pesaro for denim apparel, Grumello for buttons, Brescia for socks producing
machinery, and so on.
The close interactions between different companies, which in most cases are located in
specialized districts, are case studies at the main universities and business schools all
over the world as a model of successful industrial organization.
Industrial districts are particular manufacturing structures, merging advanced technical
and organisational solutions with the craftsman tradition which represents an important
springboard for creativeness, allowing the quick production of prototypes, small
production lots, and a large number of product variants.
In some of these specialized districts, the T/C industry is a fundamental element of social
relations, local culture and, of course, business practice.
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WHERE MADE IN ITALY FASHION IS BORN
Como
Varese Bergamo - Brescia
Mantua
Milan
Vicenza - Treviso
Padua - Rovigo
Modena - Reggio E.
Biella - Novara
Teramo - Pescara
Prato - Pistoia -
Florence
Bari
Arezzo - Perugia
Lecce
Naples
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ITALY’S MAIN T/C DISTRICTS (2004)
Turnover Export % on No. No.
District/Province Pr. Sector
(Mill. Euros) turnover Enterprises Employees
PRATO PO/FI/PT Textile-Clothing 4 948 54 8 478 50 270
VICENZA (a) VI Textile-Clothing 5 863 29 2 081 36 400
ASSE DEL SEMPIONE VA Textile (Cotton) 2 700 40 3 900 36 360
BERGAMO (b) BG T/C, buttons 3 607 38 1 642 27 981
COMO CO Silk 3 000 50 2 110 24 387
SCHIO-THIENE-VALDAGNO VI Textile 2 872 50 759 23 598
TREVISO (b) TV Textile-Clothing 2 879 62 1 664 22 338
BIELLA BI Textile 4 000 35 1 100 20 000
BRESCIA BS Textile-Clothing 2 882 44 1 780 17 875
CARPI MO Textile-Clothing 1 100 36 2 000 11 000
SAN GIUSEPPE VESUVIANO NA Textile-Clothing 5 000 n.d. 3 000 10 000
MONTEBELLUNA TV Shoes & Clothing 1 542 70 428 8 608
CASTEL GOFFREDO MN Hosiery 1 150 50 280 6 600
EMPOLI FI Clothing 570 30 521 6 210
LECCO LC Textile 750 60 162 3 227
GRUMELLO DEL MONTE BG/BS Buttons 250 40 150 2 000
VALLE DEL LIRI FR Clothing 130 20 194 2 000
TOTALE 38 579 28 912 274 648
Source: SMI on Club dei Distretti, Istat, Industrial Associations of Biella, Brescia, Como, Prato and Vicenza data
(a) - Data updating: 2002 (b) - SMI Estimate on ISTAT 2001 Census
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Retail system
and chain model
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CONSUMER - INDUSTRY COMMUNICATION: RETAIL
The industry’s attention to the consumer’s
behaviour was favoured in Italy by the existence Retail channels in Italy, clothing
of an articulated retail system, with a significant items (2004) (% weight)
presence of independent retailers.
The need to modernize retail outlets is leading to Others
a rapid evolution of the retail system towards (14.5%)
more highly structured models with larger sales
areas.
The retail system of the early 21st century Department
requires a stronger producer - retailer - Stores,
consumer interaction, a new technology in super/hyper
markets
communication as well as a new organisation of
(17.3%)
the T/C production cycle from the first yarn
processing to the point of sale.
In this direction is moving the huge flow of
investments and reorganization projects Independent Independent
underway in Italian companies all over the Chains Stores
production pipeline. (17.7%) (50.6%)
Source: SitaRicerca
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THE CHAIN MODEL
VALUE CROSSES ONE SINGLE CHAIN :
DESIGN INDUSTRY RETAIL
HOW TO TURN IN ORDER
 TECHNOLOGY
TO TRANSMIT
TECHNOLOGY  INNOVATION
TO CONSUMERS
INTO ART  QUALITY/PRICE
AN UNIQUE IMAGE
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ORIGINALITY
(From Renaissance to XXI century)
AUTHENTICITY TECHNOLOGICAL
LEADERSHIP
(Made in Italy)
(The textile districts)
MADE IN ITALY
FASHION SYSTEM
ORGANIZATION
EXCLUSIVENESS EFFICIENCY
(Italian life style) (The chain model)
QUALITY/PRICE
RATIO
(Value for money)
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For further information:
SISTEMA MODA ITALIA
Economic Studies Dept.
Viale Sarca, 223
20126 Milan Italy
Ph. no. +39 02 641191 Fax no. +39 02 66103667-70
areastudi@sistemamodaitalia.it
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