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Foreign trade and new markets
Veneto Sells Style

The 23rd, 24th, 25th March 2005, thanks to the Program Agreement between Veneto Region and the Ministry of Productive Activities, the Foreign Centre of Veneto Chambers of Commerce and the National Institute for Foreign Trade (New York, Atlanta, Tokyo and Osaka branches) carried out, with the collaboration of Venezia and Verona Chambers of Commerce and of Treviso Glocal, company controlled by the Treviso Chamber of Commerce, the visit in Veneto of 22 buyers of footwear- leatherwear and furniture sectors to meet Trevigian enterprises interested in exporting in the United States and in Japan.

The activity took place in Verona, at the local Chamber of Commerce, in Stra (VE) at Villa Foscarini Rossi and in Treviso at the Treviso Chamber of Commerce and it was carried out through customized agendas of meeting between American and Japanese buyers and enterprises of Veneto. 99 enterprises of Veneto participated (67 of furniture sector and 32 of footwear sector, all operating in the Provinces of Padova, Treviso, Venezia, Vicenza and Verona for 663 business appointments). Moreover, some visits to enterprises was carried out to deepen the business negotiations considered by both sides more promising and interesting.

The Chamber of Commerce of Treviso hosted at its Stock Exchange Room the meeting day of furniture sector the 24th of March. Works were opened by the welcome of the General Secretary of the Chamber of Commerce, Renato Chahinian, who briefly illustrated the foundations of Trevigian economy, underlining the characteristics of the Trevigian district of furniture, which constitutes one of the main national productive concentrations of wood-furniture sector.

34 enterprises of the furniture sector, which operate in different productive sections – classic, contemporary, contract and residential furniture - attended the event, for about 140 appointments carried out. Counterparties were buyers from the United States and from Japan that took part to the event only after the examination of some Veneto enterprises profiles; therefore, they had already expressed their interest. Meetings served to verify and deepen first impressions that were born “at distance”.

Markets of buyers’ operativeness were chosen according to their particular economic characteristics: in spite of the difficult economic situation of last years and slowdown in consumption, United States and Japan remain among the most important buyers of high quality items. Here it is the paradox into the paradox: Americans and Japanese buy many high quality items also if they can partially afford them - today not as much as yesterday – but they buy products in a “democratic” way (there are many buyers), without considering it a reason to trivialize items and to make them loose the brand appeal. Why this obstinate infatuation for the highest quality items? Certainly for their particular aesthetic sense, for the attraction for fashion and quality and for the lure of the “Made in Italy” production, synonymous with quality, design, fashion and with Italy in general.

The American market proves to be the world biggest furniture market. As for others countries that are strong consumers of furniture, also in the United States demand exceeds national supply and the country turns to foreign market for about the 25% of its own purchases. Italy, also thanks to sizeable promotional funds arranged in last years to back the sector, won the position of undisputed international leader for innovation and design. Italy attained great visibility and space in the market thanks to incisive advertising campaigns on the most important specialized magazines, to events involving the main Italian show rooms in New York and the public, to seminars for American architects and interior designers enlivened by world-famous Italian stylists.

The Japanese market instead strongly identifies Italian products with our country life-style and the great enthusiasm that surrounds all Italian items without any doubt helps our penetration in this market. Even if Italian furniture importation registered an increase of the 4,7%, Italy is at the fifth place among supplier countries with 234 millions dollars, unfortunately suffering for the growth of China. Italy must direct its efforts towards first-rate niche products with an original design and must turn to that part of Japanese buyers that is becoming more and more exigent, turning to items of importation just because they look for sophisticated and well-finished items, which can give a high-class look to their apartments. For this reason European furniture enterprises, in particular Italian firms, in Japan can feel a deep smell of business: Japanese people dream high-quality products with the trademark “Made in Italy”.

On the other side, United States and Japan are markets that offer to Italian small and medium-size enterprises great opportunities and transparent competition rules, representing a big showcase that, nevertheless, must be used with a certain competence.

The day of meetings wanted to be another moment of reflection for enterprises, another opportunity for confrontation and a different marketing instrument.
A moment of reflection is necessary in this tricky period for many Italian furniture enterprises. We considered more useful, instead of continuing praising past successes, to make people reflect upon present chances, upon the product perception among American and Japanese buyers, upon the existing potential for growth, upon development opportunities and upon the individuation of possible actions for the success of Veneto enterprises.

It is equally needed an opportunity for confrontation of their own product with the requirements that buyers are expecting in terms of innovation, design, quality, reliability, consignment, assistance, services. It is a way to know the potential market and to become able to start clever policies and attitudes to enter it with success.

It is also important to give entrepreneurs an instrument of marketing and a concrete opportunity for starting businesses with a selected local distributional channel. Enterprises had the possibility to meet a fair number of American and Japanese customers, presenting their products and with the possibility of starting business negotiations that may lead to embark on a new business venture in America and in the United States. Moreover, at their disposal there were two trade-analysts, one for the United States and the other for Japan, to answer to every question regarding particular characteristics of these markets.

The initiative took place and finished with a good success both in terms of participation and in terms of quality of meetings. All the institutions involved remain at disposal of Trevigian enterprises to help them in their first contact, aggression and development of foreign markets.

Giada Cappellari

 



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