Luxury Goods In Italy Account For Half Of China'S Luxury Brands.

September 4th, nearly 100 shoe industry in Italy

"The world is depressed, China is bright, and China is Italy".

However, another analyst pointed out that in Italy, SMEs account for more than 98% of the total number of enterprises and face huge and complex China.

The story of Valentino's "degradation"

Luxury clothing in Italy

In 1908, Vincenzo Valentino (Vincenzo Valentino) founded Valentino brand in Naples, Italy, and became a popular brand of Italy aristocracy and celebrities.

In 1954, the coral sandals designed by Mario Valentino, the second generation of the Valentino family (Mario Valentino), served as a model for the twentieth Century industrial design and exhibited in the Swiss shoe museum.

In 1956, Giovani Valentino, the third generation of Valentino, founded the new brand named "Giovani Valentino".

It is understood that there are only 3 brands that are directly related to Italy Valentino worldwide, namely Mario Valentino, Valentino Garavani and Giovani Valentino.

In 1987, Valentino entered the Chinese market for the first time and became one of the first luxury brands to enter the Chinese market.

In the past 30 years, the three major brands of the Valentino family have been settled several times. Eventually, they encountered embarrassment. Finally, Mario Valentino and Giovanoi Valentino completely quit, and only Valentino Garavani continued to retain flagship stores in China.

At the moment, the dazzling "Valentino XX" appears in the bustling downtown neighborhoods at a low price.

At the same time, people heard the news that Italy Valentino formally withdrew from the Chinese market.

Nowadays, in China, there are many kinds of derivative names about Valentino, such as Valentino, Louis, Valentino, Cooper, Lugano, Valentino, Saint Valentino, Valentino GV, alliance and so on.

Mao Nongyue, a Chinese brand marketing management expert, said that these manufacturers confuse consumers by prefixing or suffixes in "Valentino", commonly known as "near brand names".

These companies are generally registered in Hongkong or overseas.

According to the official website of Valentino, there are 6 stores in mainland China, all of which are "Valentino Garavani" outlets and belong to Hongkong headquarters management.

The reporter contacted the Wangfujing Valentino store in Beijing.

According to the salesperson, the brand is mainly re establishing the brand image in mainland China, so that Chinese consumers can understand the real high quality Valentino brand.

In terms of turnover and sales, Valentino is at a moderate level compared with other luxury brands.

As of press release, Valentino officials have not yet commented on the questions raised by this journal.

Mao Nongyue told the finance and economics weekly newspaper reporter that the Valentino family's separation and control of brands led to Valentino's inadequate monitoring of brand planning, authorized production and marketing network. In the Chinese market, "acclimatized" and encountered embarrassment, eventually led to the complete decline of Valentino brand in China.

According to statistics, there are no fewer than 200 brands of trademarks with "Valentino" in China.

Mao Nongyue also analyzed that the Valentino headquarters had abandoned the Chinese market, and it might also be powerless.

Because its initial road did not go well, the cost of governance is too high now.

Moreover, Valentino was originally a luxury brand, but when sixty or seventy of people were in use, they had lost their luxury.

At present, many people are still buying Valentino products, and their influence in the two or three tier cities is still very large. If these brands are unified, they will be able to make a medium end brand.

It occupies half of China's luxury brands.

The Chinese people's most sensible knowledge of Italy should include familiar luxury, high-end brands, from clothing shoes to furniture brands.

For example, GUCCI, Versace, Prada, Valentino, FIE, back-to-back, Zegna, Fendi, Fendi, cable, Fiat...

In July 2009, a sample survey by the American Luxury Association showed that Italy brands accounted for half of the ten luxury brands most popular among Chinese consumers.

"Italy's industrial advantages are not just fashion design and luxury goods manufacturing."

Lai Shiping, chief representative of Italy's Foreign Trade Commission (ICE), accepted the exclusive interview with the financial weekly magazine. "Italy's machinery manufacturing and high-tech industries are very developed, accounting for the bulk of exports to China," said Lai Shiping.

Zhang Junfang, the economic counsellor of the Chinese Minister in Italy, said in response to the Internet question that machinery manufacturing, textile and garment industry and agricultural food processing are the three traditional pillar industries in Italy, and their industrial design and creative industries are all in the leading position in the world.

Italy's fashion industry is well-developed, with many of the world's top brands.

However, under the impact of the international financial crisis, Italy's economy has fallen into recession, and foreign trade has been seriously affected, with inflation rate of 3.3% and unemployment rate of 6.7%.

The 2009 Sino Italian Trade data provided by the Beijing Office of the Italy Foreign Trade Commission showed that the mechanical and electrical products were the main commodities exported by Italy to China, accounting for more than half of its total exports to China, followed by base metals and products, chemical products and textiles and raw materials.

China is the primary source of imports of light industrial products such as textiles and raw materials, furniture, toys, leather goods, luggage and footwear, umbrellas and umbrellas in Italy.

With the deepening of the global financial crisis and the European sovereign debt crisis, European consumption is tight and the market is weak. The Italy government and enterprises are relying on the rapid development of China's expectations for boosting exports.

Lai Shiping said that Sino Italian economic and trade exchanges have entered a new stage.

Daniel, director of the Beijing Office of the Piedmont Export Association of Italy, who attended the Sino Italian business fair in Beijing, told an interview with the finance and economic weekly. "We want to sell our products to the Chinese market, or invest in China and seek strategic cooperation with Chinese enterprises.

This time, it is mainly to strengthen interaction with Chinese enterprises, governments, associations and associations, and discuss the possibility of cooperation. "

90% Italian enterprises are unfamiliar with Chinese market.

Although the two governments have actively promoted cooperation between small and medium-sized enterprises, their development is not smooth.

The difference in scale, business philosophy and mode of operation between the two countries impedes this development.

"They do not want to come to China but fear to come to China."

Lai Shiping emphasized.

In June 2010, the director of the Department of trade promotion and foreign policy of the Ministry of economic development of Italy said that at present, there were 2500 Italy enterprises settled in China. However, compared with more than 500 000 SMEs in Italy, this figure is still too small, and 90% of SMEs are very unfamiliar with the Chinese market.

According to EU standards, enterprises usually less than 250 are called small and medium-sized enterprises.

Italy is a truly "small and medium-sized enterprise kingdom".

According to statistics, small and medium-sized enterprises contributed about 70% of Italy's GDP.

A large number of small and medium-sized companies characterized by family operation are active in many industries such as textiles, furniture and machinery manufacturing. Many hundred years' brands are also small and medium-sized enterprises or family businesses.

Zhang Mi believes that the average small size of 10 small enterprises in Italy, facing the big market in China, is like the small sampan in the ocean voyage.

Marco Conti, general manager of Italy's Marche office in China, admits that although the huge Chinese market attracts Italy enterprises, their psychological and geographical distance makes them feel uncertain.

There are many reasons why Italy's small businesses are reluctant to come to China.

Luo Hongbo, director of the Italy research center of the Chinese Academy of Social Sciences, pointed out that, on the one hand, the capital and manpower of the small enterprises are insufficient, and there is not enough strength to open up the Chinese market; on the other hand, the localization industry chain makes it difficult for small enterprises to move.

Small and medium-sized enterprises in Italy are developed on the basis of local industrial clusters. For example, a shoe sole manufacturer needs to find manufacturers matching shoes.

They can't go all alone in China.

"The incompatibility between small businesses and big markets is quite obvious."

Li Dan, a professor of foreign languages at the China Foreign Affairs University, believes that the Italy family business with a historical accumulation is pursuing the identity of a particular population rather than a large market of more than a billion people.

They value not the big market in China, but the cheap labor in China.

Some small business owners in Italy said they were worried about the "duplication" ability of some enterprises in China. Because SMEs did not have enough energy and financial resources to prevent and combat imitation, imitation had a fatal impact on the brand, which led Italy SMEs to dare to open up the Chinese market.

Only the brand does not know the real goods?

Italy brand often enters the Chinese market through agency.

Since 2004, due to the liberalization of retail trade, Italy's international first-line brands can enter the Chinese market through direct operation.

Italy's top brands such as Armani, Prada, GUCCI and so on take the global marketing strategy. They are busy opening outlets in large and medium-sized cities in China. Some brands, through agencies, such as Italy's top sports shoes manufacturer in 2009, LOTTO, have been represented by Li Ning Co.

Although Italy's luxury brands have entered many of China, there are many low-grade and high-grade brands.

{page_break}

"The high-end brand in Italy attaches importance to customer's recognition of the brand's quality."

Cara, who has been engaged in Sino Italian trade, told reporters that many big brands were made by hand in small businesses or family workshops.

Chinese consumers value brands, and only well-known brands are favored because they reflect consumers' financial and identity.

Chinese consumers do not agree with those top quality brands that are not known in China but are expensive.

"Brand is the life of Italy enterprises."

Cara added.

If Chinese consumers do not agree with the brand of Italy, even if they come to China, they will be defeated.

At present, Anna, who teaches Italian in Qinhuangdao, has worked in a food store in Italy, Beijing.

The store closed in less than a year.

She explained that it is difficult for Chinese consumers to understand the difference between the price of 100 yuan and 500 yuan of olive oil.

Brand operation and intellectual property rights often become a stumbling block at the beginning of negotiations.

"How to protect our intellectual property rights" has become the most frequent problem at the Sino Italian business fair.

People in the industry who have long been concerned about the brand in Italy say that the business philosophy of the two countries is different.

Italy family business is brand operation, and Chinese enterprises are making money through large-scale promotion.

Both sides often disagree because of different ideas.

Wang Zhentao, chairman of AOKANG group, which successfully acquired the patent of Italy's top leather shoe brand, VALLEVERDE, admitted that when AOKANG acquired negotiations with Wanli Wade leather shoes, it once stood up in terms of intellectual property rights (including trademarks, patents, etc.) and price.

Some experts believe that SMEs in Italy have some mistaken ideas about the Chinese market.

Taking clothing and consumer goods as an example, market research has shown that the purchase of clothing, shoes and caps is greatly influenced by people, rather than advertising or spokesmen.

As long as there is no conflict between the positioning of the product and the imitation crowd.

"Definitely not the same kind of people who buy clothes in Beijing Xinguang world and in the wholesale market of zoo."

Sino Italian enterprises have strong complementarity.

Affected by the global financial crisis, Italy textile, clothing, leather shoes, leather goods and other traditional industries have been seriously hit.

However, the export volume of China's exports has been rising continuously amid the gloomy Italy export data.

According to figures released by the National Bureau of statistics of Italy, the total export volume dropped by 20.7% in 2009, and exports to other major trading partners were negative except for China's export growth of 3.2%.

Industry analysts believe that Italy's traditional industries should adjust their strategies and actively develop emerging markets.

The Chinese market, which has always been regarded as a threat, has become an "adventure paradise" for small and medium-sized enterprises in Italy.

"Globalization has stretched the industrial chain of Italy, and its small and medium-sized enterprises can put some link of production in China.

China is a great opportunity and market. If we don't attack, we can't live. "

Luo Hongbo thinks.

Zhang Mi compared Italy's small and medium-sized enterprises to China's "going to the top of the road". Although there is no bottom in mind, it may spell a way out.

The Italy government adopts a centralized strategy to help SMEs find business in China. It is like "making a small dinghy into a galleon and sailing to sea", which can reduce the cost of "going out" of small and medium-sized enterprises.

From the central government to the local government, from all parts of the city to the city, the relevant industry associations, industrialists' associations, bank associations and other industries, such as economy, industry and finance, have been strapped together to lead the small sampan arriving in China to help them connect with the relevant Chinese departments and provide support for settling down in Italy.

Zhang Mi explained that the Italy government is helping small businesses to locate China's economic growth point, such as from the Pearl River Estuary to the Yangtze River Delta, then the coastal area of Bohai, and now comes to the two rivers area.

Although there is little cooperation agreement in such a group negotiation, it is very necessary for the two governments to build an exchange platform for the two enterprises in the absence of sufficient information.

"The talks organized by the two governments have been going on vigorously and vigorously, and the next step is to take a solid approach and implement the needs of those enterprises one by one. This is the key to turning the great ideals and moving slogans into reality."

Zhang Mi suggested.

"Sino Italian enterprises have strong complementarity."

Lai Shiping said that Italy has extraordinary creativity and exquisite manufacturing technology, while China has abundant labor resources and vast market.

Some scholars said that private enterprises in China could cooperate with SMEs in Italy to absorb foreign capital and advanced management experience, promote industrial upgrading and integrate with the international market, so as to achieve complementary advantages and share resources.

For example, some of the OEM processing enterprises in China are also under the pressure of market shrinkage, which is also affected by the financial crisis.

Since the end of 2008, private capital in Wenzhou has started brewing overseas brands, and Italy's rich shoe leather and clothing brand has become the first choice for private enterprises.

However, cooperation between the two sides is still difficult.

First of all, "both enterprises need to be familiar with and understand each other's market environment, including market system, industry, law, taxation, labor law and so on."

Luo Hongbo said that the differences between the two countries are too great, or even how to get along with their employees, so they all need to learn.

Secondly, there is a deviation between the two sides' brand positioning. Chinese private enterprises hope to win the other's first-line brand in one move.

According to introduction, in June 2009, Wenzhou private enterprises went to Italy group to buy the brand.

Although the two sides have strong cooperation intentions, the other side intends to sell the two or three line brand rather than the first line brand.

Luo Hongbo suggested that Chinese enterprises should start from childhood, so that they can gradually learn and familiarise themselves with the laws and regulations of Italy. After accumulating experience and funds, they will continue to grow big and not be impatient.

In addition, the language barrier makes it impossible for the two sides to communicate directly, which often leads to "a thousand miles away".

At present, Sino Italian SME Cooperation is still in its infancy.

In view of the limited financial and manpower resources of small and medium-sized enterprises, the government and relevant guild organizations should play an active role in the early development of the market.

China's business guilds should change their functions and do more practical things.

The lectures should have something to say, let the enterprise have the harvest, and truly serve the enterprise.