Time to stop making excuses and pulling in different directions
Interview with Mario Moretti Polegato
With auctions of Italian government bonds yielding excellent results and international investors alert to opportunities in the Italian market (especially the government’s privatization plan), the foreign press is looking on with great interest at an increase in global liquidity that seems to be paying dividends for Italy. Meanwhile, figures pointing to a rise in consumer confidence also bodes well for the country. But does this renewed appeal hold tangible benefits for “Made in Italy” firms? The Foreign Press Monitoring section of the Aspen Italia website team discussed this issue with Mario Moretti Polegato, chairman and founder of Geox.
There’s been a change in Italy’s image in the international press, but what effects has this had on “Made in Italy” firms?
I travel a lot for work and I believe that, in recent times, perceptions of Italy have improved significantly. Of course, for those who make quality products, the impact of this improvement is indirect, since what matters in international markets is having products that meet consumer tastes. However, an Italy that is perceived as more stable and attractive for investment definitely helps Italian firms raise capital for growth. Let’s not forget that our market still attracts few investors from outside Europe compared to other countries on the continent. So the fact we’ve strengthened our reputation for stability and for being strongly anchored to Europe is an advantage that we must prove capable of capitalizing on.
How can this positive perception be converted into a change of gear for the Italian economy?
In the midst of what is still a labored recovery, Italy is able to bring into play a highly responsive industrial base. Throughout our history, we have shown time and again that we are capable of bouncing back from difficulty, and today – unlike in the darkest depths of the crisis – we can say that we’re back in business. But now we need to grow. Not just the political system but also the entrepreneurial world have a role to play in this regard. Two years ago, the crisis in Italy was a topic of international debate, whereas this year there is a widely-held belief that the country can make it. Now that the strengths we have to draw on are quite evident, there can be no more cop-outs. We no longer have any excuses to fall back on: we need to work for growth. Other countries will certainly not wait for us to get our act together.
How much are certain lingering negative stereotypes hurting Italy today?
Unfortunately, many of the negative stereotypes surrounding Italy’s image are not merely based on prejudices, but on real issues to be faced. We’re talking about regulatory uncertainty, political instability, unwieldy bureaucracy, and infrastructure lags. These are problems that need to be resolved given the resurgence in investor confidence, which is accompanied by an influx of liquidity into the Italian market from abroad. This is an opportunity not to be missed: a failure to attract and retain foreign investment in Italy could backfire. Only by solving these problems quickly will it be possible for us to bring into play the full potential of the Italian economy. We have all the means to pull it off, being, among other things, the only country in Europe to be endowed with an image that so strongly combines style with technology.
So we kick-start the country again, but based on what? Do we need to raise the international profile of our top firms, or network them more effectively?
Made in Italy firms certainly do not suffer from a lack of renown – far from it. But before we can market Italy as a country brand, the challenge is to get Italian industry to pull together. We have lots of brilliant firms which, however, very often pull in different directions and not just for cultural reasons, but also because the country’s industrial base is made up of many small and medium-sized enterprises. The easiest thing for us to do is to take our cue from countries that have been able to organize and effectively promote themselves better than us: alongside France and Germany, Spain has for some time now shown itself capable of effectively and coherently positioning itself, even in emerging markets. It’s not just us that would benefit from this, but also the European economy as a whole.
