StudentShare solutions
Triangle menu

Italian textile industry: An overview - Essay Example

Not dowloaded yet

Extract of sample
Italian textile industry: An overview

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. According to Italy's national statistics office, production of clothing and textiles fell by 7 percent, while shoe production decreased by 10 percent, corroborating recent reports that footwear from China is treading at a rapid rate on what used to be a flagship of Italian style. (Italian designers, 2005)
In 2003 Italy was the third world's exporter of textile products (about 8% of the total amount), after China and USA, recording a CAGR loss (1995-2003) of roughly 1%. In 2003 among the main clothing exporters the country was placed just behind China. (Made in Italy, 2005)

Although the Italian sector is currently facing unprecedented challenges but these challenges can be faced only by innovation. These include the abolition of quantitative restrictions (quotas) which took place on 1st January 2005. These challenges are occurring in a period of marked slowdown in economic activity, which has a significant impact on sectors such as textiles and clothing. Furthermore, at the same time the Euro has shown a significant upward trend against the US dollar. All in all, every segment of textiles and clothing production, from spinning and weaving to garment make-up, has in one way or the other suffered from the impact of the developments of the last few years. (Textiles and clothing sector in the EU-25) The years 2001-2004 have been particularly difficult for the industry. After substantial falls in production and employment in the previous three years, it is estimated that in 2003 production fell by a further 4.4% and employment by 7.1% (EU-25, source: Eurostat). The trade deficit (EU-25) amounted to 29.4 billion in 2003, the trade in textiles reaching a surplus of 3.7 billion and the deficit in clothing 33.1 billion.
What Italian companies need is to be flexible, creative, and innovative. Their weapons are professional knowledge and a great sense in luxury.
Another opportunity which Italian companies can utilize to their benefit is the size of the companies. The structure of the industry is changing becoming aggressive and difficult to govern. Small companies are able to react with agility and intervene speedily, ...Show more

Summary

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…
Author : wyattjast
Italian textile industry: An overview essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Italian textile industry: An overview"
with a personal 20% discount.
Grab the best paper

Related Essays

Stagnant Performance of Textile Industry of Pakistan
Textile industry is of crucial importance for Pakistan. The total contribution of the textile industry in the income earned through exports is 60%, its contribution in the manufacturing arena is 46%, and this sector consumes over 46% of the loans obtained through banks, 38% of the total employed workforce of Pakistan works in the textile industry.
8 pages (2000 words) Essay
Textile industry in India
In addition to these factors one must necessarily consider the impacts that factors such as emerging markets, globalization, competitive environment, and labor issues impact upon the viability and health of an industry and/or entity/organization. For purposes of this particular analysis, the author will consider the nations of India and Vietnam with respect to the textile industries that are represented in both nations and seek to come to a broad and overarching understanding of the means by which these systems could engage to maximize competitiveness within the industry.
8 pages (2000 words) Essay
Textile industry and water pollution in China
Subsequently, the ecological factor in China has experienced the gravest effects and has formed the basis for the need to advocate for the safe guarding environmental. Additionally, conflict between Chinese government policies that foster economic growth and environmental concerns have also been significant in affirming the imbalance of health opportunities.
10 pages (2500 words) Essay
Chinese Textile Industry
At present, the industry of textile is undergoing massive changes. Such evolution is being motivated by the liberalisation of the trade regime controlling textiles. Most important, the Multi-Fibre Agreement had been phased-out as stated in the Agreement on Textiles and Clothing (ATC) created by the World Trade Organisation (WTO).
16 pages (4000 words) Essay
SMEs in Chinas Textile and Clothing Industry
The large number of theoretical and empirical studies can be evidence of the attention (Abay, 1989) After entry of WTO, China's export has received great attention from most countries especially in the Textile and Clothing industry. Certain countries have been significantly aware of and limited the export of textile and clothing products from China, especially for European Union or U.S.
32 pages (8000 words) Essay
Textile Industry in USA
manufacturing sector. The U.S. textile industry of these days has altered significantly over the past couple of decades. It is now highly developed and internationally viable. The U.S.A has the worlds most up to date and dynamic textile industry. At present, there are over 6,000 textile companies in the USA.
19 pages (4750 words) Essay
Textile Industry of UK
The present import rate in UK is soaring at the rate of 13%. The United Nations Database recognizes United Kingdom as the second largest importer in RMG and fourth largest in the World (UK Textile Industry, 2009). The following report is going to discuss two companies and their growth - Lazy Oaf Company and Bay & Brown Company.
12 pages (3000 words) Essay
Healthcare Industry Overview Grid
There is an example that is already started to help with the process, but ensure you include adequate information to support your findings. Health Care manufacturing deals
2 pages (500 words) Essay
Report about textile manufacturing industry
The different raw materials used in the textile manufacturing industry are generally divided into synthetic products and natural products belonging to the
4 pages (1000 words) Essay
U.S. Textile Industry Localization
It is well known that localization of the industrial enterprises depends on a number of factors such as power supplies, availability of resources and raw materials, proximity to the market and others. However, the industry was initially located in New England with machinery imported from Europe and the first cotton mill founded in 1790.
2 pages (500 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation