Italy stands out among European nations with high labour costs as one of the countries with an important manufacturing presence in the textile-apparel pipeline. More specifically, Italy has a unique position both on account of the notably larger size of its textile and apparel manufacturing sector as compared to other countries, and also because of the significant position of this particular sector within overall manufacturing activity in Italy. In the 1990s the trend of textile and apparel manufacturing in Italy differed considerably from other European countries, so that Italy has come to assume a special position in the textile-apparel sector. The size of textile and apparel manufacturing industries in Italy also shows certain particular characteristics that involve the textile-apparel pipeline in its four levels (fibers, textiles, apparel, retail). These characteristics result in a rather complex overall situation, which can be simplified and summarised as follows. Firstly, Italy is poor both in natural fibers and also in raw materials for the production of man-made fibers; despite this, the contribution of this sector to the positive Italian trade balance is particularly significant. Consequently, textile and apparel manufacturing activities are particularly sensitive to the trends of international markets. Secondly, the structure of this industry in Italy shows an elevated number of firms, concentrated and rooted in local systems that are of noteworthy economic and social impact (industrial districts). Furthermore, although the textile and apparel sector is highly fragmented, it is recomposed within the industrial districts. There are local systems that are specialized in textile manufacturing, others in apparel, and yet others specialized in both. Mechanisms of exchange, generation and reproduction of intangible resources (knowledge, trust) operate within these local systems. Because of the special features of the entrepreneurial approach in the industrial district, the firms active in the district may be driven by a rationale different from short-term motivations [Becattini 2003]. Thirdly, the retail distribution of apparel in Italy also has certain unique features, in particular the persistence of the strategic group of independent retailers. Although the market share of independent retailers is declining, it still occupies a majority position within the total market of apparel consumption. In the past, the link between industry and distribution was read as a relevant factor for Italy’s international competitiveness in this sector [Porter 1990]. However, the phase of change in international competition that has begun to make itself felt over the last few years is destined to affect Italy in terms of a number of specific factors, and will thus have different repercussions on firms in the textile and apparel pipeline in Italy than in other countries with similarly high labour costs. The outcome of this new scenario of competition may thus be completely or partly different, or may simply differ in time and manner. The illustration and in-depth examination of the above mentioned peculiar factors represents one of the first aims of this paper, and will be discussed in the following two sections. A second aim, of no less central importance, is the evaluation of the strategic behaviour adopted by Italian textile and apparel firms. With regard to this second aim, we will focus mainly on strategic positioning and integration between manufacturing firms of the textile-apparel pipeline and clothing retail. These aspects will be discussed above all in the fourth section, where the evolution of firms’ positioning will be evaluated both with respect to their market segments and also in the framework of buyer-seller relationships. In the subsequent section, we examine the vertical integration strategies in the various levels of the pipeline adopted by some of the major Italian apparel firms; this study will be partly carried out by a secondary research that makes use of data (news) taken from the Journal du Textiles on the growth processes of firms that integrate manufacturing functions with those of retailing in the textile-apparel pipeline.

Strategic behaviour of Italian textile-apparel firms: national specificity and international competitive change / S.Guercini. - ELETTRONICO. - (2004), pp. 1-41. (Intervento presentato al convegno The European Clothing Industry: Meeting the competitive challenge - ESC Toulose - CREER - JFMM tenutosi a Toulose, France nel 26-27 February).

Strategic behaviour of Italian textile-apparel firms: national specificity and international competitive change

GUERCINI, SIMONE
2004

Abstract

Italy stands out among European nations with high labour costs as one of the countries with an important manufacturing presence in the textile-apparel pipeline. More specifically, Italy has a unique position both on account of the notably larger size of its textile and apparel manufacturing sector as compared to other countries, and also because of the significant position of this particular sector within overall manufacturing activity in Italy. In the 1990s the trend of textile and apparel manufacturing in Italy differed considerably from other European countries, so that Italy has come to assume a special position in the textile-apparel sector. The size of textile and apparel manufacturing industries in Italy also shows certain particular characteristics that involve the textile-apparel pipeline in its four levels (fibers, textiles, apparel, retail). These characteristics result in a rather complex overall situation, which can be simplified and summarised as follows. Firstly, Italy is poor both in natural fibers and also in raw materials for the production of man-made fibers; despite this, the contribution of this sector to the positive Italian trade balance is particularly significant. Consequently, textile and apparel manufacturing activities are particularly sensitive to the trends of international markets. Secondly, the structure of this industry in Italy shows an elevated number of firms, concentrated and rooted in local systems that are of noteworthy economic and social impact (industrial districts). Furthermore, although the textile and apparel sector is highly fragmented, it is recomposed within the industrial districts. There are local systems that are specialized in textile manufacturing, others in apparel, and yet others specialized in both. Mechanisms of exchange, generation and reproduction of intangible resources (knowledge, trust) operate within these local systems. Because of the special features of the entrepreneurial approach in the industrial district, the firms active in the district may be driven by a rationale different from short-term motivations [Becattini 2003]. Thirdly, the retail distribution of apparel in Italy also has certain unique features, in particular the persistence of the strategic group of independent retailers. Although the market share of independent retailers is declining, it still occupies a majority position within the total market of apparel consumption. In the past, the link between industry and distribution was read as a relevant factor for Italy’s international competitiveness in this sector [Porter 1990]. However, the phase of change in international competition that has begun to make itself felt over the last few years is destined to affect Italy in terms of a number of specific factors, and will thus have different repercussions on firms in the textile and apparel pipeline in Italy than in other countries with similarly high labour costs. The outcome of this new scenario of competition may thus be completely or partly different, or may simply differ in time and manner. The illustration and in-depth examination of the above mentioned peculiar factors represents one of the first aims of this paper, and will be discussed in the following two sections. A second aim, of no less central importance, is the evaluation of the strategic behaviour adopted by Italian textile and apparel firms. With regard to this second aim, we will focus mainly on strategic positioning and integration between manufacturing firms of the textile-apparel pipeline and clothing retail. These aspects will be discussed above all in the fourth section, where the evolution of firms’ positioning will be evaluated both with respect to their market segments and also in the framework of buyer-seller relationships. In the subsequent section, we examine the vertical integration strategies in the various levels of the pipeline adopted by some of the major Italian apparel firms; this study will be partly carried out by a secondary research that makes use of data (news) taken from the Journal du Textiles on the growth processes of firms that integrate manufacturing functions with those of retailing in the textile-apparel pipeline.
2004
“The European Clothing Industry: Meeting the competitive challenge”, ESC Toulose – CREER – JFMM, Toulose, February 26-27
The European Clothing Industry: Meeting the competitive challenge - ESC Toulose - CREER - JFMM
Toulose, France
26-27 February
S.Guercini
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Utilizza questo identificatore per citare o creare un link a questa risorsa: https://hdl.handle.net/2158/331610
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