Gianesin, Canepari and Partners - Media - “Terroir” and “zero Kilometre production”: Manufacture that creates value. In a recent interview published by “Corriere della Sera” Serge Alfandary, Director of Louis Vuitton Fashion Shoes Division based in Fiesso D’Artico on the “Riviera del Brenta”, says that their production of high quality shoes will always remain in Italy and that it is the product itself more than the brand that tells of its real value. Competence, “terroir”, quality are the values that can be found only in some Italian production districts. As a matter of fact many are the companies that maintain or develop their production in Italy. Is that a return to origins? Or is it the consequence of negative experiences abroad? It is our conviction that this is something new and different. From the very beginning let us point out that these companies are the ones which are enjoying a growing success on national and international markets. It is enough to move a few hundred meters from Atelier Louis Vuitton at Fiesso d’Artico in order to meet Calzaturificio Ballin, a company that has doubled its sales in the last two years and is planning to expand its productive capacity so as to be able to increase even more significantly its revenues in the next few years. Or, in Falzè di Piave, in the province of Treviso, you meet Biemmereti a company specialized in the manufacturing of metal bedstead that has adopted the zero kilometre production logic and is now investing in the development of new products like wood bedstead and a number of useful accessories. The result of this strategy is a 16% average yearly growth in the last five years and the development of a nationwide distribution network. In Pove del Grappa, in the province of Vicenza, you meet Caminetti Montegrappa, a company specialized in fireplaces and stoves which is implementing new production processes and is planning to quadruplicate its sales of pellet stoves in three years through a policy of new products characterized by new and original design, excellent quality, total reliability. The above mentioned companies like many others in North East Italy have a few common features. They practice a selective localization: in other words they highly treasure the system of competences, values, practices typical of the terroir where they operate. And they capitalize on these favourable conditions which risked to be lost as a consequence of the disastrous delocalization practiced by many companies especially in the far east. They invest on product value: they do not compromise on quality, innovation and reliability. Product speaks for itself (As Louis Vuitton manager pointed out) and no marketing action can hide low technical and esthetical quality. They control the process: the most critical phases of the production cycle are kept inside while suppliers are selected on the basis of their location and competence establishing long term relationships. As a consequence we not only have high quality products but also less impact on the environment and a positive contribution to the economic growth of the area. They adopt strong organizational models: these companies invest time and money to create an organizational model that is not only efficient but also strong and shared, making it possible to create a motivated group of people whose differences in terms of nationality, culture, values and education become a source of progress and growth. They think of the world in terms of a market: delocalization is not seen as a way to reduce labour costs, but as an opportunity to sell their products which continue to be manufactured in Italy. We believe that these examples can be seen as reference models on which to found a long term national industrial strategy. These companies can do much even if they are not supported by the state; but their effectiveness would be exponentially increased if they were supported by an adequate “country system”. This system should not be made of state financial benefits, but of industrial and commercial policies aimed at supporting innovation, export, territorial development and the creation of centres of excellence. All these resources should be directed to help these companies to acquire an international standing based on a few “pillars”: Efficiency through Lean Transformation, Concern for sustainability, Cross-cultural communication, Corporate Social Responsibility. If they were supported by a good country system our already excellent companies could become even more excellent and successfully compete in the global market.

“Terroir” and “zero Kilometre production”: Manufacture that creates value.

In a recent interview published by “Corriere della Sera” Serge Alfandary, Director of Louis Vuitton Fashion Shoes Division based in Fiesso D’Artico on the “Riviera del Brenta”, says that their production of high quality shoes will always remain in Italy and that it is the product itself more than the brand that tells of its real value. Competence, “terroir”, quality are the values that can be found only in some Italian production districts.

As a matter of fact many are the companies that maintain or develop their production in Italy. Is that a return to origins? Or is it the consequence of negative experiences abroad?

It is our conviction that this is something new and different.

From the very beginning let us point out that these companies are the ones which are enjoying a growing success on national and international markets.

It is enough to move a few hundred meters from Atelier Louis Vuitton at Fiesso d’Artico in order to meet Calzaturificio Ballin, a company that has doubled its sales in the last two years and is planning to expand its productive capacity so as to be able to increase even more significantly its revenues in the next few years.

Or, in Falzè di Piave, in the province of Treviso, you meet Biemmereti a company specialized in the manufacturing of metal bedstead that has adopted the zero kilometre production logic and is now investing in the development of new products like wood bedstead and a number of useful accessories. The result of this strategy is a 16% average yearly growth in the last five years and the development of a nationwide distribution network.

In Pove del Grappa, in the province of Vicenza, you meet Caminetti Montegrappa, a company specialized in fireplaces and stoves which is implementing new production processes and is planning to quadruplicate its sales of pellet stoves in three years through a policy of new products characterized by new and original design, excellent quality, total reliability.

The above mentioned companies like many others in North East Italy have a few common features.

They practice a selective localization: in other words they highly treasure the system of competences, values, practices typical of the terroir where they operate. And they capitalize on these favourable conditions which risked to be lost as a consequence of the disastrous delocalization practiced by many companies especially in the far east.

They invest on product value: they do not compromise on quality, innovation and reliability. Product speaks for itself (As Louis Vuitton manager pointed out) and no marketing action can hide low technical and esthetical quality.

They control the process: the most critical phases of the production cycle are kept inside while suppliers are selected on the basis of their location and competence establishing long term relationships. As a consequence we not only have high quality products but also less impact on the environment and a positive contribution to the economic growth of the area.

They adopt strong organizational models: these companies invest time and money to create an organizational model that is not only efficient but also strong and shared, making it possible to create a motivated group of people whose differences in terms of nationality, culture, values and education become a source of progress and growth.

They think of the world in terms of a market: delocalization is not seen as a way to reduce labour costs, but as an opportunity to sell their products which continue to be manufactured in Italy.

We believe that these examples can be seen as reference models on which to found a long term national industrial strategy.

These companies can do much even if they are not supported by the state; but their effectiveness would be exponentially increased if they were supported by an adequate “country system”.

This system should not be made of state financial benefits, but of industrial and commercial policies aimed at supporting innovation, export, territorial development and the creation of centres of excellence.

All these resources should be directed to help these companies to acquire an international standing based on a few “pillars”: Efficiency through Lean Transformation, Concern for sustainability, Cross-cultural communication, Corporate Social Responsibility.

If they were supported by a good country system our already excellent companies could become even more excellent and successfully compete in the global market.

Less Locution, more Location