The concept of Made in Italy is something that builds its foundation in the collective imagination. Made in Italy is a concept that stretches across many product categories and industries. Some examples include.
Some other are categories are lesser-known but still extremely important.
The COO effect is a very important element in the value proposition of a brand. On the one hand, it allows promoting products very persuasively in foreign markets, but it also plays a very important role in domestic markets. We address COO branding in more detail in this post.
Made in Italy is a concept that is able to merge in a unique country of origin a list of attributes that spans from maintaining a strong attachment to traditions as well as being pioneering innovation.
In this post, we are going to discuss:
Technically speaking, Made in Italy relates to a specific element of the value chain: the location of production. At the same time, the value of made in Italy spills over to:
All in all, the addition of this production value translates into a 20% price markup for Italian products, sold internationally.
Additional features of the Made in Italy country of origin effect, relate to an additional aspect that has much to do with the organizational structure of Italian businesses. Italian businesses, for the most part, are small or medium enterprises (SME in short) which are owned by family members. This provides them with unique characteristics:
Let’s see what relational and rational mean specifically:
It has to be noted, however, that Made in Italy, despite our premises is not only a synonym of product quality but also a symbol of service excellence. Many Italian brands, such as Dolce and Gabbana, have developed an international reputation for creating new standards of excellence in customer service and retail operations.
As we came to the geographic localization of these firms we can see how production clusters are mostly located in the central regions of Italy, specifically in Tuscany, Emilia Romagna, and in the Marche.
Finally, what challenges lie ahead for Italian companies? There are many which could be mentioned, as running businesses in Italy provide many unique challenges. Some of them may entail the management of companies who are walking a path in the middle between heritage and innovation, for instance:
All in all, Made in Italy is a country of origin brand which entails great persuasion, but also a lot of responsibility towards the past (heritage) but also the future of fashion. In the following paragraph, we are also going to address the way in which Made in Italy is addressing the need for new environmental standards.
Sustainability has become a predominant element in the business of fashion, and Italian fashion producers have taken the challenge right on, creating a manifesto, or a general declaration of intent in the way in which the Made in Italy country of origin label needs to become a synonym of sustainable business.
In 2012 the Camera Nazionale Della Moda published a manifesto of sustainable fashion. These are its tenants:
At 440 Industries we are very concerned with the efforts that brands need to undergo to become agents of sustainable change. In this section of the website, we have a wide variety of resources for anyone interested in understanding how to become more environmentally-aware.
In this post, we defined what Made in Italy means and what are some of the most relevant features that relate to the Made in Italy philosophy. Working with Italian manufacturers is a great opportunity and sometimes a privilege, which has to be approached with both business and cultural understanding of the way in which Italian businesses operate.
In our blog, you will find more information about the fashion business and the importance of cultural understanding when crossing national borders. If you wish to expand on this topic, here a post you might be interested in: The Challenges of Negotiating Across Borders.
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