The participants at this national roundtable noted, by way of opening premise, that the luxury and high-end markets represent a worldwide business worth 730 billion dollars. The sub-segment of personal luxury goods – valued at 230 billion dollars – sees Italy and France as joint market leaders, each having a share worth more than 50 billion dollars. More specifically, however, Italy is the leader in the product field, and hence in terms of manufacturing and creativity – so much so that many French luxury products are made in Italy, the second-largest manufacturing economy in Europe, ranked fifth in the world, and, of the major European powers, the only one to have constantly retained this position over the last 30-40 years. This strength is built on the country’s ability to draw on a longstanding tradition of quality craftsmanship that is recognized and sought-after throughout the world.
It was observed, however that Italy also has a further innate competitive advantage stemming from the beauty of its extraordinary natural landscapes, which over the thousands of years of its history have provided inspiration for the most brilliant minds in the Mediterranean. The country’s competitive edge therefore has ancient roots, and enjoys a significant market share currently accounting for one-third of Italian GDP, though this continues to grow. Indeed, the high-end market serves as a cultural ambassador all over the world, since it is those six thousand single-brand stores, those tens of thousands of restaurants, and those hundreds of millions of objects and products that are traded and sold to hundreds of millions of consumers around the world which represent Italy abroad.
The participants were thus at pains to stress that a boost to this industry would help strengthen the position of the Italian business community as a whole. Nevertheless, it was acknowledged that in order to achieve this, there is a need to move beyond the family-run business model which predominates in Italy, so as to open this type of industry up to global competition, and, hence, first and foremost, to capital markets, by adapting governance structures, organizational systems as well as market access and distribution strategies with a view to becoming more competitive. This was seen as an exercise requiring an effort on the part of entrepreneurs, but which needs to be accompanied not only by the financial system taking a special interest, but also by public authorities facilitating the ability to seize the opportunity presented by adopting strong industrial policies apt to further the country’s competitive advantage.
The hybrid nature of the luxury industry was seen as built on and nourished by the interplay of a number of facets such as culture, art (the relationship of the latter with the major Italian labels being patently on display at the Cartier, Prada and Trussardi and other similar foundations), research, exclusivity, and the unique, highly-aesthetic and engaging experience that the industry’s products offer. Added to these are values ascribable to heritage and tradition, as well – at the moment – as eco-friendliness. It was urged that this series of intangibles, together with the excellence that is the hallmark of the quality of Italian luxury goods, must combine to produce a narrative through which these products speak effectively to the hearts and minds of consumers. The participants felt that the added value of Italian luxury items undeniably derives from their unique and almost symbiotic relationship with time, the sacred, history, and all that elevates the Made in Italy brand to its legendary status.
In summing up, it was concluded that in this regard Italy is at an advantage, precisely because its luxury products are enriched by a unique history, authenticity, tradition, beauty, know-how and flair capable of shaping a narrative which offers consumers an “achievable dream”.