6 - The Italian Model Flashcards
Italian Model characteristics
social value: craftsmanship + detail
product: variety + innovation
image: beauty + sensuality
= lifestyle + dolce vita (living well)
post 2000 Italian model
new players new segments upstream + downstream integration entry of finance evolution of product + retail into lifestyle concept
main Italian business models
industrial companies - acquire/launch brands through licensing (Diesel)
multibrand/multibusiness groups - acquiring other brands (Kering, LVMH)
designers-entrepreneurs - control production + distribution (Versace)
italian prontomoda - commercial companies following a model of quick response (Pinko)
textile companies - move towards end consumer to increase profit margins (Loro Piana)
competitive advantage of Italian model
designers
entrepreneurs
textile industry
fashion pipeline
identifies the vertical system that starts w/ the production stages of raw materials down to the manufacturing and distributive stages of the textile + clothing industries
- also includes businesses that are not part of the vertical system but support the system (ex: publishers)
business model evolution of D&G
90s: expansion by licensing
end of 90s: turned itself from a fashion house to a vertically-integrated company
licensing
licensor gives licensee permission to use its name and design for production and/or distribution of one/more product category, within a specific territory and distribution channels, for a certain period
- licensor receives royalty
reshoring
Italian manufacturing continues to be revered as some of the highest quality in the world
- new tendency for bringing back the production to Italy
italian model rationale
clothing is core business
first line extension (diffusion), later brand extension (perfumes…)
from designers to vertically integrated companies
family run
reshoring
