Embed Size (px)
Citation preview
The economic value of creativity
The business model of the italian The business model of the italian fashion clustersfashion clusters
Hermes lab srl
http://www.hermeslab.it
E-mail: [email protected]
Marco Ricchetti, CEO, Hermes lab, Italy
Bangkok, december 29, 2003
The economic value of creativity: outline of the presentation
Brief summary of the Italian fashion industry
The Fashion business
Fashion clusters, advantages andnew challenges
The italian fashion industry in figures
Turnover (mln EuroTurnover (mln Euross))
Share in World exports (%)Share in World exports (%)
EmploymentEmployment
Trade balance (mln EuroTrade balance (mln Euross) )
Textiles, clothing, leather goods, footwear
2002 2003 (fcst)
71,097
925,000
+19,146
9.8%
70,031
+16,781
Fashion industry vs.TC industry (1)
What we mean when we use the term fashion fashion industryindustry
Fashion is, by definition, changechange.
Success in fashion comes with the ability to grasp and recreate in clothes and accessories the ethereal ethereal spirit of the timespirit of the time and voluble desires of customers.
Fashion adds an important design design dimensiondimension to textiles or leather artifacts, which is capable of providing a continual and varied flow of new productsnew products
Fashion industry vs.TC industry (2)
The factories manufacture clothes,
but consumers buyemotions, hope and dreamsemotions, hope and dreams
Fashion vs Luxury (1)
A fashionable good cancan be a luxury good,
but not necessarilynot necessarily is so. Very often it is not !
APPAREL MARKET BY PRICE-SEGMENT
MODERATEMODERATE
BUDGETBUDGET
LUXURYLUXURY
BRIDGEBRIDGE ++
BETTERBETTER
The high-end luxury market, accounts for
a very small share
of the market
Fashion vs Luxury (2)
Italyholds a strong position in
luxury (designers), bridge and better
segments And, most of all, where
fashion and variety matter.
Fashion and Risk
VarietyVariety and the low predictabilitypredictability
of factors that make a new product
a best sellerbest seller or a worst-worst-sellerseller
generates a risk far risk far greatergreater
in fashion than in other industries Medium
to high
high
very high
RISK
Increasing uncertaint
y and risk
The fashion pipeline
BUREAU DE STYLE
FIBERS MANUFACTURERS
FASHION TREND FORECASTS
YARNYARNMAKERSMAKERS
RETAILERSRETAILERS
GARMENTGARMENTMAKERSMAKERS
FABRICFABRICMAKERSMAKERS
CONSUMERS
DESIGNERSDESIGNERS
SPECIALIZEDSPECIALIZEDPRESSPRESS
ADVERTISINGADVERTISING
CULTURALCULTURALINDUSTRYINDUSTRY
OPINION MAKERSOPINION MAKERS
PROTOTYPES
PROTOTYPES, SAMPLES, TRADE FAIRSRUNAWAY SHOWS
SALES POINTS
PROTOTYPES, SAMPLES, TRADE FAIRS
FLOWS
INFORMATIONGOODS
PROTOTYPES, SAMPLES, TRADE FAIRS A reduction of risk can be
acheived trough a complex
interaction of goods and information flows. Key competences
are:
Strong Strong ralationships ralationships
along the pipelinealong the pipeline
Combined with Combined with flexibilityflexibility
Mastering of Mastering of innovation routinesinnovation routines
The advantage of clusters
Strong tiesStrong tiesWithin a cluster the whole pipeline
is often reproduced, sometimes it extends
to the manufacturers of specialized machinery.
The close relationship between users and providers
of machinery and intermediates is decisive
in the introduction of new products, and new processes.
The advantage of clusters
Know-HowKnow-How
The concentration of professional skills applied to all phases of the pipeline
is powerful and marked by
a great variety of operators.
Knowledge and informationcirculate easier inside
than outside the cluster.
The advantage of clusters
Innovation machineInnovation machineMerging of advanced technical and organizational solutions
with the craft traditions build a remarkable platform for creativity and innovation
(rapid development of prototypes, short run series, great array of
variants).
The advantage of clusters
Entrepeneurial competenceEntrepeneurial competenceThe small to medium size of the companies
does not prevent the world to be considered by entrepeneurs
as their reference market.
Company structures are lean and flexible.
Family ownership is very common, providing quick decision making,
long-term planning and commitment.
A critical weakness of clusters
Industrial cluster heavily focus on manufacturing
know-howwhilein fashion industry
specialized services (design, communication, cultural industry etc….)
Are of crucial importanceAre of crucial importance
Actually, main fashion clusters developed around two
urban centres that played the role of services providers:
MILANO and FIRENZEMILANO and FIRENZE
A map of italian fashion clusters
Most of fashion clusters in Northern ItalyAre within a radius o 200Km around Milano
Most of fashion clusters in Central ItalyAre within a radius o 150Km around Firenze
Challenges for the future
The fashion business in the ‘80
In the past, fashion clusters built their succes focusing on manufacturing buying on the market the necessary specialized services (including retailing).
Communication
Retailing
Design
Manufacturing
CultureSociety
Consumption
The core competence of fashion clusters
Challenges for the future
Design
Manufacturing
Communication
Retailing
Multi-competenceMulti-competencecompanycompany
CultureSociety
Consumption
The fashion business in the new decade
Will the cluster companies be able to expand their
core competence ?
Competition in fashion goodsurges companies to approachthe market in an integrated way.
Manufacturing Know-How becomes less important.Brand image, communication, control of distribution channels are the challenges for success.
End of presentation
Hermes lab srl
http://www.hermeslab.itE-mail: [email protected]
Bangkok, december 29, 2003
Marco Ricchetti, CEO, Hermes lab, Italy
