The Financial Times the other morning reported that the world market in luxury goods is estimated to be worth $1.5 trillion. It is one of the few bright spots in consumer goods as the ranks of the wealthy grow.
A substantial part of Italy’s future lies in the export of luxury goods.
I don’t know how much of Italian branded goods are produced in Italy and how much is made offshore but at least the profits belong here even if the jobs are elsewhere.
You will notice a major upgrade to Gucci’s building beside the A1 at Florence. Further down the Autostrada, at Montevarchi, Prada have just finished a huge new complex. It is complete with a shiny helicopter registered PRA sitting on the pad. There are, hopefully, other luxury related investments I don’t see.
It is possible these buildings are solely for administration or distribution but you would hope there is some manufacturing going on. Does anybody know?
Perhaps someone with Mario Monti’s ear could suggest an export strategy that will encourage Italy’s luxury good makers to take advantage of the skills that undoubtedly exist in Italy. If the jobs necessary to meet the increasing demand for Italian products were created in Italy the country would be on the way to recovery.
By Stephen Lusher
Stephen Lusher served five terms in the Australian Federal Parliament. He worked around the fringes of politics before setting up Lush on Bondi, a trendy bar on Sydney’s Bondi Beach.
Frequent trips to Italy led to an inevitable love affair with Tuscany. He and his wife Cathy sold up in Sydney and purchased Il Mulinaccio in 2008.
Within two months of moving to the Chianti Hills he was diagnosed with throat cancer. The experience led to him re-focusing his life and priorities. After a few uncomfortable years he thinks he has it beaten.
Stephen’s interests include wine, food, history, culture and travel.
He struggles with the Italian language and indulges himself in some occasional writing.
Cat Bauer says
Correction: Bottega Veneta
Cat Bauer says
Here in Venice and the Veneto, the luxury market is also expanding, which is a great thing. Here is a link to an ANSA article about Bottega Veneto, which is a perfect example of how to get Italy back on its feet.
“Luxury at its best, ‘made in Veneto’
Bottega Veneta has unusual recipe for success
Eighty percent of the brand’s bags are handmade and all are woven in the northern Italian region of Veneto. Despite joining the company in 2009, on the eve of the global luxury crisis, Marco Bizzarri has guided Bottega Veneta through surprising growth. In 2010, revenues rose 27% to 510.6 million euros and earnings rose 45% to 133 million euros (before interest and tax).”
http://www.ansa.it/web/notizie/rubriche/english/2012/04/06/visualizza_new.html_162444116.html
Toma says
Stephen I too have seen the new buildings along the Autostrada and have taken both an optimistic and pessimistic view on them. I see it as a good thing because any time that companies are spending money it’s a good thing as they clearly aren’t losing money. The fact that they are doing it in Firenze baffles me. Milan is literally and figuratively closer to Europe. Centralising themselves does not, to me, fare as a good sign for exports. As I said though, if they’re spending money it can’t be a bad thing, so we should probably see it as a good sign. Now if only Gucci and Prada can rid us of our politicians…