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Italian textile industry: An overview - Essay Example
Following a period of rapid growth in the '90s, during which major Italian fashion companies acquired new brands and boutiques like they were going out of style, the current business climate is strictly focused on cost control and improving internal efficiency…
Since then the whole world market has been glutted with the Chinese products.
Italian textile manufacturers are eager regarding the market condition. The competition posed by China is not only reducing the profit margins of the Italian textile industry but also effecting the employment conditions in the industry.
The leading industries of Italy are the clothing and textile industries. About some 68,000-fashion businesses, majority of, which are small, are located in the country's north side. The revenues come from exports and constitute about sixty percent.
The lively combination of productive, creative, and managing activities turns out to be the main point of strength of Italian textile and clothing industry, whose about540,000 employees contribute to roughly 10% of the manufacturing sector's added value. (Made in Italy, 2005) However, the problem is a decrease of turnover of Italy's fashion industry because of the invasion of Chinese products into all of Europe.
As a result the sector has been struggling in recent years, losing more than Euro 5.2 billion (US$6.3 billion) in turnover since 2001. The financial decrease has led to the closing of some companies and the sacking of some 90,000 workers. ...