IT's by Economy

Discover Italy

UAE ON TOP OF THE WORLD TOWARDS EXPO 2020 DUBAI

The lead up to the great global event turns the world’s attention to the Emirates, with Italian excellence playing a leading role

SULTAN BIN SAED AL MANSOORI Italy remains a strategic partner in the UAE’s growth and prosperity

PAOLO GLISENTI Italy’s beauty to connect people more than ever at Expo 2020

ITALY ON THE ROAD A trip around Sardinia on the iconic Fiat 500

LIBORIO STELLINO Italian luxury continues to embody the quintessential status symbol

MADE IN ITALY EYEWEAR The Belluno district, world leader in the top of the range

POLIFORM From Brianza to 85 countries, always investing at 360DICEMBRE degrees 2018| 3

Expo EDITORIAL

Towards

2020 Dubai W

by Sergio Luciano

Publisher Domenico Marasco

Discover Italy

Editor in chief Sergio Luciano

Concept by Economy Group and EFG Consulting

Chairman Advisory board Giovanni Bozzetti

Piazza Borromeo 1, 20123 Milano

Economy Group s.r.l.

Translations Gian Marco Litrico

President and CEO Giuseppe Caroccia

Graphic design Raffaela Jada Gobbi, Liliana Nori

Editor Riccardo Venturi

e are just over a year away from the inauguration of Expo 2020 Dubai, the largest event ever staged in the Arab world, which will welcome more than 200 participating countries and over 25 millions of visitors from all over the world. Italy will play a leading role, driven by the Emirate people’s love for Italian goods, especially the most luxurious ones, namely fashion, jewelry, cars, yachts, food and wine. The Italian Pavilion will be a large experiential hub of innovation, and promises to be one of the most visited: set under the overturned hulls of three ships ideally arrived by sea, it will tell the compelling story of Italy’s successes in various fields, including art, technology, engineering and sustainability. From the entrance, in the shape of a traditional Italian square, to the grand finale, that gives the illusion of being in front of an Italian skyline, the visitor will be encouraged to reason with the concept “Beauty that connects people”. The hulls of the ships will be supported by pillars to resemble petals in white, red and green, to celebrate the great Italian explorers and the seafaring tradition, engaging at the same time the theme of the circular economy, which aims to minimize waste with reuse and recycling. During Expo 2020 Dubai, Italy will also offer an extensive cultural and entrepreneurial program, which will put Italy at the center stage. If you combine the economic expansion taking place in the United Arab Emirates with the continuous growth of the tourist-commercial market, there is an extraordinary business opportunity that many Italian companies are already seizing, and it is the reason why you have this magazine in your hands. This new magazine, “IT’s”, aims to magnify the quality of the Italian products, both in terms of content and design, but will also celebrate the Italian lifestyle as a model to follow. “IT’s” will be a printed magazine, also available in digital version, with a high cartographic and content quality, distributed through a network of crucial locations for the business community in the United Arab Emirates. The cosmopolitan nature of the public that goes shopping in the Emirates makes the classical content offered by international media, both paper and television, disconnected from the context, and therefore weak. Emirates’ visitors do not look for their usual media, but they focus on the context. Finding a high quality magazine where they stay and work, will give them, no doubt, the desire to browse a well-crafted magazine that connects them to their environment. Enjoy. SEPTEMBER 2019 |

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IT’s magazine, a bridge EDITORIAL

between UAE and Italy

ly SMEs, which have the unique Italian ability to create products and services featuring the highest quality, perfectly matching style and practicality. “IT’s” also offers an extraordinary tool for being updated on business opportunities emerging in the Emirates and also on the many outstanding projects that, on a regular basis, are being launched and then punctually carried out by the local Authorities. Thanks to their socio-political stability, their safety and economic openness to foreign investors, not to mention their efficient bureaucracy and their advantageous geographical posiby Giovanni Bozzetti

n the historical moment we are living, where the internal market and the traditional end markets for Made in Italy products are going through a period of uncertainty, companies aiming to go abroad, must increasingly turn to new developing markets. Among them, a particular focus should be made to the Middle East, and in particular to the United Arab Emirates, where Italian products are very much appreciated. In fact, Made in Italy is no longer just a designation of origin, but represents a real brand known all over the world for its high quality, beauty, style, elegance, innovation and creativity. Thanks to the Made in Italy reputation, today consumers in Middle Eastern countries are at least 30 percent more likely to purchase products from Italy than from any other country. “IT’s” magazine was created exactly for the purpose of celebrating Made in Italy and promoting not just artisan and industrial high-end products, but also the beautiful Italian landscapes and lifestyle. “IT’s” is an indispensable tool for our friends from the United Arab Emirates to immerse themselves in the Italian atmosphere, enjoying its sounds and colors, its wisdom, art, and culture. “IT’s” is a way to be introduced to Italian companies, especial-

An indispensable tool for our friends from the UAE to immerse themselves in the italian atmosphere, and for italian companies to develop their business in the Emirates tion as a crucial commercial hub between East and West, the Emirates represent today the place where every company should be. “IT’s” also provides Italian entrepreneurs with useful tips about how to partner with local entrepreneurs from a human and professional point of view and how to develop their business locally. “IT’s” therefore represents a strong cultural and entrepreneurial bridge between Italy and the Emirates, both countries sharing common traits in term of economic and social fabric. Knowing each other better, learning the mutual habits and traditions, discovering the cultural, craft and landscapes of the two nations will create opportunities for developing not only commercial activity, but also privileged relationship of friendship and mutual consideration. SEPTEMBER 2019 |

Valuing IT’s Brand Editorial concept for an

UAE-destined magazine

he reasons why such a high-quality manufactured paper magazine should land on the UAE editorial market, initially every two months, are several, on top of its content excellence. Amongst these, we highlight the most relevant reasons, especially for our historic context, we believe justify the magazine’s distribution with a national newspaper and in the best five-star hotels throughout the Emirates. • The economic expansion carried out by the UAE is an opportunity many Italian enterprises have seized. Differences among the Emirates have to be taken into account, but generally landing on such market would be an outstanding opportunity, which has yet to happen in the editorial field, probably because all its potential authors are concentrated elsewhere. • First and foremost, the touristic and commercial market is of titanic dimensions, especially if relative to the country’s size. In fact it is bound to grow exponentially, with the two major airports hosting 150 million passengers as of now, but thought 8 | SEPTEMBER 2019

to increase to 200 million by 2020. Even if the tourists were less than half, it would still be 70 million people, more than the traffic that transited in Rome, Milan and Venice combined. Part of this traffic is and will be commercial, but most will be touristic and highspending. • A positive sentiment surrounds Italian products, both in the public and in the establishment. Examples of this span from luxury made in Italy (textiles, shoes, jewels) to the automotive market (Ferrari, Lamborghini, Bugatti, Ducati, MvAgusta, Riva) to the yachting, the furniture, and the food ones. • Italy and the UAE are friends, bound by a decade of goodwill demonstrated through constant development in business crossover. On top of this, the institutional, political and cultural apparatuses favor such intra moenia Italian initiatives, as long as they are born within the rules and regulations and are strengthened by appropriate influencers.

The Recipe for success

• Expo 2020 will further boost Italy’s image on the market, with the made-in-Italy shopping frontier shifting into a stronger gear. Indeed, Italy’s role in the 2020 global demonstration will be a major one. • Exposure to traditional media is shifted in the shopping context. Tourists in the UAE are heavy shoppers, and reading is becoming less and less frequent. Lobby reading however will remain safe and sound, acting as complementary to high-speed internet-based media usage.

1 2 3 4

Distribution must be high quality and capillary. Advertisers must be attracted so to invest in making the initiative possible, well structured and managed.

The quality of the product is obviously paramount: luxury Italian build, photographic, graphic and content excellence. Only one “shiny name” is enough, while the substrate remains a great narrative.

Marketing. The public needs to feel that the magazine is both useful and

Finally, good relationships must be established with local authorities, institutional and governmental entities.

• 45 million people are thought to transit in a year through the 500 luxury hotels that are our target. This is a safe statistic about how many tourists will stay in such hotels and will be exposed to the magazine. Team work Expanding what said above, the collaboration between the editorial and commercial teams in the UAE and Italy is crucial for the distribution, production and institutional components of the project. SEPTEMBER 2019 |

Summary 12

COVERSTORY Interviews with: H.E. Eng. Sultan Bin Saeed Al Mansoori, UAE Minister of Economy; Paolo Glisenti, the General Commissioner for Italy at Expo 2020 Dubai; Liborio Stellino, Italian Ambassador in Abu Dhabi; Carlo Maria Ferro, president of the Italian Trade Agency; Najeeb Mohammed Al-Ali, Executive Director, Expo 2020 Dubai Bureau; Adeeb Al Afifi, Director of the National Program for SMEs at the UAE Ministry of Economy; Mohamed Juma Al Musharrkh, CEO of Sharjah FDI Office (Invest in Sharjah); H.E. Mohamed Helal Al-Muhairi, Director General of the Abu Dhabi Chamber; HE Marwan bin Jassim Al Sarkal, Executive Chairman of Shurooq; S.E. Abdalla Al Shamsi, Consul General of the United Arab Emirates in Milan; Fabrizio Sala, Regional Council Vice President of Lombardy; Lorenzo Bagnoli, Emirates Diacron Group Partner; Roberto Corciulo, partner and president of IC&Partners; Federico Sutti, Dentons Italy Managing Partner.

MADE IN ITALY

The eyewear district of Belluno, the most famous in the world, featuring 300 producers of all sizes.

Road trip to discover the beautiful island of Sardinia aboard a timeless icon - the Fiat 500.

Maire Tecnimont, global leader in industrial plant engineering and in the downstream oil industry.

Cova, the historic Milanese pastry shop has just opened a new location in the Dubai Mall.

10 | SEPTEMBER 2019

LIFESTYLE

Trip to the Naples region. The charm of the Amalfi Coast and the excellence of two companies: Getra and Cti FoodTech.

Vintage cars. Corrado Lopresto, the most famous collector in the world, reveals the secrets of the most exclusive auctions.

The secrets of the fine art market revealed by Alex Ricchebuono, a renowned connoisseur of a fascinating sector.

FASHION

Walter Da Silva, one of the most famous automotive designers, is now back to his old love: the female shoe.

Lidia Cardinale Couture conquers the Emirates markets with the distinctive elegance and quality of Italian fashion.

How a Rolex is created - from gold to steel, all the parts are cast in-house with cutting edge equipment.

Coverstory

Italy and UAE, strengthening

s the UAE pursues its roadmap for the future by drawing inspiration from its Vision 2021, the deepening of ties with friendly partners is one of the cornerstones of sustainable development. The harmonious history of trade and economic relations shared with Italy has contributed to the progress of our country; and Italy remains a close partner in the UAEâ&#x20AC;&#x2122;s continuing growth and prosperity. Strengthening existing partnerships and identifying new areas for collaboration in sectors of mutual interest that complement the development aspirations of both countries is the next step to elevate this special friendship to newer heights. Italy is one of the most important trade partners from the European Union for the UAE, while we serve as a strategic geographic location for Italy by connecting the East and the West. The synergies on matters linked 12 | SEPTEMBER 2019

partnerships Sultan bin Saeed Al Mansoori, Minister of the Economy of the United Arab Emirates: the harmonious history of trade and economic relations shared with Italy has contributed to the progress of our country; and Italy remains a close partner in the UAEâ&#x20AC;&#x2122;s continuing growth and prosperity to trade, agriculture, tourism, energy and infrastructure indicate that economic and commercial partnerships between Italy and the UAE are now in a consolidated phase. The strength of the ties between both countries is evident in the consolidated business partnerships and the continuous growth and development, which can be attributed to their robust trade relations. In fact, the total volume of non-oil trade between UAE and Italy reached a total of USD 7.9 billion in 2017. As far as the UAE is concerned, strategic segments such as innovation, SMEs, start-ups, technology and advanced industries have played a lead role in driving its sustainable development.

The country remains keen on stepping up its cooperation across areas like space exploration, alternative energy, civil aviation, transportation, financial services, food security and halal products. In addition, the ongoing cooperation between the UAE and Italy as part of preparations to host the upcoming Expo 2020 Dubai has been remarkable. Over 1,000 Italian businesses have registered to interact with the Expo through its e-sourcing portal, with 66 per cent of these being small and medium-sized enterprises (SMEs). Furthermore, the UAE-Italian joint venture “Cimolai Rimond” is providing the steel work for the dome trellis of Al Wasl Plaza – the iconic centrepiece of the Expo site.

Italy is one of the most important trade partners from the European Union for the UAE, while we serve as a strategic geographic location for Italy by connecting the East and the West

There are a total of 8,765 Italian brands in the UAE market, with over 600 Italian companies operating in the country as Italy provides a gateway for Emirati companies to enter Europe whilst the UAE provides Italy access to the Middle East markets. Such extensive partnerships and trade ties covering several key sectors is a strong indicator that bilateral relations between the UAE and Italy are at an all-time high and continue to go from strength to strength.

UAE invites italian companies to partner with its private sector As the Economy Minister Sultan Al Mansouri said, the UAE is inviting Italian oil and gas, technology, renewable energy and infrastructure companies to partner with its private sector as it seeks to further boost foreign direct investments flows, even in light of the wide range of opportunities the UAE FDI law provides. As «all of these are priority sectors for the UAE government and the private sector», and given many opportunities of mutual investments, the Economy Minister would like to «invite Italian companies to benefit from the UAE as a regional and global hub» of investments. The UAE ranks first in the Gulf region in terms of FDI inflows ($10.4bn in 2018) and the country accounted for more than 22% of the total FDI inflows into the Middle East and North Africa. Since the oil and gas sector has been a major driver of FDI in the UAE over the past few years, attracting foreign investment is high on the country’s agenda in order to diversify the revenue base, cutting dependence on oil proceeds. For example, the UAE last year passed an FDI law that streamlines and facilitates capital inflow, and it’s now keen to strengthen its existing trade relations with the European countries such as Italy. The bilateral trade between the UAE and Italy has grown significantly, with a total non-oil trade between the two countries about almost $7.8bn in 2017. The UAE has an agreement in place with Italy since 2012 and it is increasingly signing several preliminary agreements on SME partnerships, investments, economic development and innovation, with the aim of taking «our strategic partnership to a new level», as Mr Al Mansouri said. The agreements cover sectors both identified in the UAE National Innovation Strategy – such as healthcare, education, technology, transportation, aerospace, water and renewable energy – and included in the key Italian economic fields of Italy – such as engineering, financial technology, biotechnology and pharmaceuticals.

SEPTEMBER 2019 |

Coverstory

Italy’s Beauty to connect people more than ever at

Expo 2020

by Paolo Glisenti

hat does Italy really excel at today? And what is our message to the rest of the World? ‘Beauty Connects People’, Italy’s claim at the World Expo 2020 set to open in Dubai in just over a year, might well be an answer to those two pressing questions. Sure, Italy’s beauty and creativity have been key elements connecting throughout the ages different populations, talents and ingenuities within the shared Mediterranean cultural inheritance. That variety of assets serves today as a bridge to a future shared with a greater audience than ever before. The Expo in Dubai starting on October 20 next year will be one the best chance we have to showcase our culture, values and innovation. With 192 participant nations and 15 million visitors over a six-month period, the one in Dubai will be the first and biggest event of all times in the so-called Me.Na.Sa. or Middle East, North Africa and South Asia region. Italy’s theme fits very well with the one for the whole Expo selected by the United Arab Emirates, our hosts – “Connecting Minds, Creating the Future”, sub-themes being Sustainability, Mobility and Opportunity. Our Pavilion, located in the Opportunity District, provides Italian companies, cultural and scientific institutions with an extraordinary opportunity to make an enduring impression in a highly dynamic region. Close to the UAE Pavilion designed by Santiago Calatrava and those of Germany, India and the United States, our pavilion designed by CRA-Carlo Ratti Associati, Italo Rota Building Office, F&M Ingegneria and Matteo Gatto & Associati is not only a top architectural project, with the hulls of three Italian ships ideally arrived by sea, overturned and raised one 14 | SEPTEMBER 2019

Italian Pavilion, located in the Opportunity District, close to the UAE Pavilion designed by Santiago Calatrava, provides our companies, cultural and scientific institutions with an extraordinary opportunity to make an enduring impression

The author, Paolo Glisenti the General Commissioner for Italy at Expo 2020 Dubai

next to the other on tall pillars to become a three-color cover. The pavilion will also be a large experiential hub of innovation, reflecting the most advanced forms of sustainability and circular economy in a collective effort to capture the essence of the new global challenge - generating widely shared environmental values. Italy’s old and new generations of artists, designers, students, scientists, teachers, entrepreneurs, managers will bring their projects of sustainability in their respective field, from culture to the agri-food and aerospace industries. Moreover, the National Research Council (CNR) will show its projects for the Mediterranean’s blue economy and our universities will be able to set up or boost their relations with dozens of top educational institutions around the globe – just to mention few of the hundreds of panels, events and conferences of our pavilion. Some of Italy’s ambassadors-champions will be at Expo 2020 to celebrate and strengthen the traditions and connections of our sports, while dozens of top legal experts will discuss with a global audience what the new environmental rights are about. «The ‘Beauty Connects People’ concept is an effective motto for Italy but also serves as a wake-up call for the rest of the world,» to cite our Artistic Director and Curator Davide Rampello, «just as we regard Beauty as a defining mark of identity and sharing, likewise other countries must equate it with ‘connection’ and the sharing of knowledge».

Coverstory

UAE love Italian style for its inimitable

r Liborio Stellino, italian ambassador in Abu Dhabi: what is the perception of Made in Italy in today’s UAE business community? The massive and unanimously appreciated presence of Made in Italy in the UAE context is an indisputable and consolidated fact at all levels. As in most markets, Italian products are a synonym of taste, elegance, style, creativity, innovation and reliability. From high-end jewellery to cars, Italian luxury continues to embody the quintessential status symbol for local society and also for the international affluent community that is active here. The most prestigious hotels in an international tourist destination such as Dubai are Armani and Bulgari. And speaking of high-end food, there is no lack of Italian MasterChefs, from Beck to Bottura, with at least one of their premises in the country. In short, even in the UAE, regardless of nationality, origin, level of education or taste, deep in everyone’s heart there is a soft spot undoubtedly “Italian”... In particular, is Italy well known and appreciated for being a hotbed not just for luxury goods, but also for automation, machinery, architectural and engineering design? Right now, Italian companies are building the new, futuristic shopping centers of Dubai (Meydan Mall, by Salini-Impregilo) and Abu Dhabi (Reem Mall, by Itinera-Gavio). An Italian consortium (Cimolai-Rimond) is building the central square of the EXPO2020 exhibition site. Even a recent masterpiece like the Louvre in Abu Dhabi speaks Italian in so many ways: its lighting (Artemide and ERCO), the 500 km of submarine fiber optic cables (Prysmian), the armchairs 16 | SEPTEMBER 2019

elegance

Liborio Stellino, Italian Ambassador in Abu Dhabi: from high-end jewellery to cars, Italian luxury continues to embody the quintessential status symbol for local society and also for the international affluent community

and sofas (PoltronaFrau), alongside the raised flooring (Nesite), the building coating (MAPEI) and the catalog (SKIRA). The millions of visitors who flock to admire the magnificent dome designed by Jean Nouvel, are actually strolling on elegant slabs made of Pietra di Luserna, extracted in the Province of Cuneo and also used, for example, at the Mole Antonelliana, a major landmark building in Turin, Italy. In short, it is a mature market, where the qualities of Made in Italy and made by Italy are well known, but where you can’t sit back and rest on your own laurels, due to the very tough, global and never ending competition. Would you advise an Italian company to consider the Emirates for a fixed investment? Yes, but with the necessary caution. First of all, the choice of

the sector is crucial, because it has to reflect the ongoing economic diversification and target expanding spaces like renewable energies, bio-medical, logistics, Information and Communication Technology, all the technologies deployed in agriculture, along with innovation aimed at reducing hydro-electric consumption, tourism and the food processing industry. I would prefer companies that look to the UAE, aiming not only to the potential of the internal market, but also to the ease of re-exporting goods to the vast hub accessible from here. Then I would make sure that the company in question has a cash flow consistent with a medium-term business plan (4 to 5 years), the minimum time frame to see its efforts repaid and be rewarded by a complex market. Last but not least, it will be very important to pay attention to the imminent publication of the list of sectors where the Emirate law will finally grant a foreigner the right to be the main shareholder of the company, without being obliged to have local partners. Also considering the Expo, how much do you expect the bilateral trade volumes to incresase next year? The EXPO, although now just around the corner, still presents concrete opportunities strongly connected with the best and most well-known Italian expertise. I have in mind the construction of numerous national pavilions and the design and furnishing for the thematic exhibition areas, alongside of the catering services for an exhibition site where 25 million visitors are expected. There are opportunities also for setting up the spaces for the creative and cultural industry, with twenty amphitheaters scattered within the exhibition space, hosting shows and daily productions throughout the period of October 20th, 2020 to April 10th, 2021. In which sectors do you expect the Italian and UAE cross-border economic activity to further develop in

the coming years? Looking at recent data, the most promising sector is still Oil and Gas which over the last two years has had an interesting internal transformation making the entire supply chain much more balanced - upstream, midstream, downstream and trading, unlike the past where licensed oil

The choice of the sector is crucial, because it has to reflect the ongoing economic diversification and target expanding spaces like renewable energies, bio-medical, logistics, Ict, all the technologies deployed in agriculture, along with innovation aimed at reducing hydro-electric consumption, tourism and the food processing industry extraction was absolutely predominant. The size and potential of these developments, as well as their impact on other economic activities, will attract our industry leaders in this sector, as already seen in the last year by the successes of ENI and Maire Tecnimont, but also with opportunities for innovative SMEs. SEPTEMBER 2019 |

Coverstory

The

Italian Trade Agency

stands alongside

Italian SMEs

TA, the Italian Trade Agency, is the Government agency promoting the internationalization of Italian companies, in accordance with the strategies and under the aegis of the Ministry of Economic Development, in collaboration with the Ministry of Foreign Affairs. ITA helps to develop, facilitate and promote Italian economic and trade relations with foreign countries, with a focus on SMEs’ needs, their associations and partnerships. ITA sustains Italian firms in their internationalisation process, promoting the marketing of Italian goods and services as well as the image of “Made in Italy” products around the world, while facilitating outward Italian investments and encouraging FDI attraction into Italy. ITA provides information, support and consultancy services to Italian companies on foreign markets, in order to foster exports and economic cooperation in all sectors, with the objective of increasing the effectiveness of their presence on international markets. ITA works closely with the Italian Regions, the network of Italian Chambers of Commerce, business organisations and other public and private entities. ITA’s headquarters are based in Rome and it works through a large network of 79 offices in 65 countries around the world, which are acknowledged as “Trade Promotion Offices or Sections” of Italy’s Embassies and Consulates. ITA supports Italian firms in their efforts to increase the flow of exports and investments and to approach foreign markets. Among the main services ITA offers to Italian companies there

18 | SEPTEMBER 2019

In preparation for Expo 2020 Dubai, ITA will be at the forefront in sustaining the Italian firms willing to participate in this outstanding international event, focusing on SMEs

carlo maria ferro, president of the italian trade agency ice agenzia

are the following: information and assistance; identification of commercial partners; visits to international trade shows and industrial districts; support for investments abroad; attracting foreign direct investment in Italy. In preparation for Expo 2020 Dubai, ITA will be at the forefront in sustaining the Italian firms willing to participate in this outstanding international event, focusing on SMEs, offering them the opportunity to showcase their products, services, expertise, bringing them into the global spotlight. Many construction sites are in progress, for the Al Maktoum International Airport (DWC); for the project Route 2020, the Dubai Metro Red Line extension that has now reached 70 per cent completion; Al Wasl Plaza; District and national pavilions. Great opportunities will open up for Italian firms when the Italy Pavilion’s construction will start. The Italian Trade Agency will stand alongside Italian SMEs giving them the possibility to introduce their business at a global scale and to access Middle Est, North Africa, South East Asia (ME.NA.SA.) markets. Expo 2020 will also play a crucial role as a platform for displaying and advertising the Italian know-how in many different sectors, from innovation to mechanical engineering, from highly specialised machinery to food as well as services. Expo 2020 will give the Italian firms the opportunity to enlarge their business in the UAE, and together with the Italian Trade Agency’s help to grow stronger in such a highly competitive market.

Expo 2020 Dubai puts emphasis on

Italian role

Najeeb Mohammed Al-Ali, Executive Director, Expo 2020 Dubai Bureau: we look forward to collaborating with Italy on this exciting journey

ajeeb Mohammed Al-Ali, Executive Director, Expo 2020 Dubai Bureau, presented the Italian role in the big event as follows: “The UAE and Italy have long enjoyed a close relationship that incorporates strong trade, business and cultural ties. With non-oil bilateral trade reaching $7.8 billion in 2017, the UAE is the largest Arab trading partner with Italy, and Italy is the fourth largest trading partner of the UAE. More than 11,000 Italian nationals, the largest Italian community in the Middle East and North Africa region, have made the UAE their home. “Italy handed over the World Expo baton, from Expo Milano 2015 to Expo 2020 Dubai, and so it appreciates the value of countries working together to tackle global challenges to create a better future for us all. The next World Expo will also be an ideal platform for Italy to showcase its renowned cultural and creative expertise to millions of people from all over the world, with 70 per cent of visitors to Expo 2020 expected to come from outside the UAE. From one host nation to another, we look forward to collaborating with Italy on this exciting journey and welcoming many Italian visitors when our Expo opens in October 2020.”

Expo builds on AED 2.4 billion boost to SME sector with more contracts to award With less than 480 days to go until Expo 2020 Dubai, there is no better time for small- and medium-sized enterprises (SMEs) to grow into the Middle East and beyond. Expo 2020 Dubai awarded contracts totalling AED 2.4 billion to companies with fewer than 250 employees up to end-March 2019, with more tenders to come as it progresses to the next phase of delivery. Expo 2020 has committed to awarding 20 per cent of the monetary value of its contracts to SMEs, a sector that forms the backbone of the UAE and global economy. According to the United Nations, which marks World SME Day on 27 June, small businesses are key to creating the 600 million jobs needed by 2030 to keep pace with the growth of the world’s working age population. Expo has been at the forefront of pioneering new initiatives to improve the ease of doing business for SMEs. These include clearing payments in 30 days instead of the 90-day industry standard, guaranteeing a 50 per cent payment upfront when procuring goods, or 25 per cent when contracting services, and accepting bank cheques instead of deposits. Earlier this month, Emirates NBD, Expo 2020’s Official Banking Partner, announced a new account designed specifically for SMEs registered on Expo’s Online Marketplace (OMP), providing them with preferential loan rates, working capital support and low minimum balance requirements. These efforts have seen SMEs flock to register on the OMP, a free, high-powered eProcurement platform and database where businesses from all over the world can post and award tenders, as well as advertise services.

Coverstory

Empowering SMEs, primary goal of

mall and medium enterprises in UAE have proven to be the strategic drivers of industries across the country and are expected to play a much stronger role in the years to come. According to the UAE Ministry of Economy, more than 98 per cent of the companies operating in the UAE are SMEs and together, they account for more than 49 per cent of the country’s current GDP. Essentially, these SMEs contribute to growth, innovation and job creation. Therefore, it is highly imperative to ensure they are empowered with the right tools and support to move ahead into their journey. The UAE government is playing a key role in its ambition to enhance their contribution and performance of the SME sector, and we have seen the government establishing various initiatives and programs to help them grow further. There are lots of local entities such as Mohamed bin Rashid Establishment for SME development, Khalifa Fund for Enterprise Development, The Saud Bin Saqr Establishment for SMEs, and Ruwad – Sharjah Entrepreneurship Foundation and others more. However there is one federal council established by law that is The Program was established 20 | SEPTEMBER

2019

UAE’s economy The National Program for Small and medium enterprises at the UAE Ministry of Economy aims to give them support in various fields, providing expertise to promote their growth

Adeeb Al Afifi Director of the National Program for SMEs at the UAE Ministry of Economy

under Federal Law No. 2 of 2014 which is the executive armed of Small and Medium projects and enterprise council that affiliated to the Ministry of Economy. It aims to empower small and medium-sized national entrepreneurs. It is tasked with developing the general frameworks and guidelines which will provide expertise, training, and technical and administrative support in various fields to promote and develop SMEs, in addition to conducting periodic evaluations of them. Moreover, it coordinates with federal and local government bodies and the private sector to market the products of its members, both inside at outside the UAE, and to provide benefits and incentives for members’ projects. Dr. Adeeb Al Afifi, Director of the National Program for SMEs at the UAE Ministry of Economy, pointed to the considerable role of SMEs in the economic growth in the country. He also pointed to the pioneering role of the National Program for SMEs which encompasses more than 1,700 Emirati entrepreneurs who have the passion to explore more promising opportunities.

The Emirate of Sharjah, a close partner to

Italian companies

s the CEO of one of the leading investment promoMohamed Juma tion agencies (IPA) in the UAE, Mohamed Juma Al Al Musharrkh Musharrkh, CEO of the Sharjah FDI Office (Invest CEO of Sharjah in Sharjah), said: “The emirate of Sharjah has long FDI Office (Invest been known to be one of the main drivers and key contributors in Sharjah) to strengthening, developing and expanding bilateral relations between itself and some of the biggest economic powerhouses in Europe and the world.” He highlighted: “Over the last three years, we at “Invest in Sharjah” have conducted a number of visits across various cities in Italy, such as Rome, Padua and Milan, and were successful in establishing strategic and continuous bilateral relations with government entities and businesses built on the foundations of services and opening doors to respective markets that would pave the way for a diverse set of Italian businesses to Sharjah.” He added: “Italy has historically been one of the closest economic partners to Sharjah where both share common educational, cultural, tourism and economic values and bilateral relations. To date, the emirate of Sharjah is home to over 200 Italian registered Sharjah is home to over 200 Italian registered companies, companies, with forecasts on growing this further with our upcoming activities and with forecasts on growing this further with upcoming participations across a number of cities in activities and participations across different cities in Italy Italy.” He continued: “Most recently, we have signed an MoU with Italian businesses, investors and SMEs the Italian Trade Commission (ITC) expanding on bilateral into explore Sharjah’s diversified markets, vestment prospects between Sharjah and Italy, building on new and allowed them to receive guidanpartnerships and business ventures across a variety of sectors. ce and advice on how establishing their This took place during our participation at the Sixth UAE – investments in Sharjah can help them Italy Joint Economic Committee, which was held in October generate new prospects across regional of last year. Since the signing we have successfully enabled markets.”

SEPTEMBER 2019 |

Coverstory

Business opportunities in the Emirate of Abu Dhabi The Abu Dhabi Chamber of Commerce & Industry organizes the commercial and trade activities in the Emirate, increasing the competitive capabilities for the companies and expanding their opportunities

he Abu Dhabi Chamber of Commerce & Industry is an autonomous institution of public interest that represents the various productive and service activities of the private sector in Abu Dhabi. The aim of the Chamber is to unite the companies of the territory to protect their collective interests, creating business opportunities and providing them with other more services. In recognition of that, the Chamber develops and organizes the commercial and trade activities in the Emirate of Abu Dhabi, increasing the competitive capabilities for the companies in the private sector and expanding their opportunities. The union of these factors contributes to the sustainable development in the Emirate. As part of the goal of the UAE Smart Government for 2021 and in line with the vision of the Emirate of Abu Dhabi to focus on the development of non-oil sectors, the Chamber aims to provide digital services to the public anytime and anywhere. Thatâ&#x20AC;&#x2122;s why the Chamber is progressively enhancing the channels of communication in order to ensure speed and 22 | SEPTEMBER 2019

H.E. Mohamed Helal Al-Muhairi, Director General of the Abu Dhabi Chamber

excellent services for companies and investors in the Emirate. In addition to this, the Abu Dhabi Chamber pays particular attention to the development of entrepreneurship among the youth and encourage them to enter into startups and small and medium enterprises. By doing so, it looks forward to become a strategic partner for the success of start-ups and SMEs. Moreover, the Chamber offers to the companies the chance to expand their opportunities through various and new programs, such as the recent initiative of the Emirates Association for Franchise Development. Through the cooperation of farsighted investors who care about the future of the Country and the new generations and through an award program for start-ups, micro, small and medium enterprises, the Chamber will achieve the desired objective to develop a business sector capable of guaranteeing a prosperous future for the UAE making it a pioneer for creativity and innovation.

Helping Italian brands

to be leader in

he union between Made in Italy and the United Arab Emirates is proving increasingly profitable: Italy continues to ensure products and services of excellent quality, with unmistakable style and elegance, reliable for durability, but mostly accessible to a wide socio-economic group of consumers. At the same time, the Arab world is showing an ever-increasing interest and passion for everything that is part of the Italian Style, as evidenced by the data on consumption - for example, the demand for products and services Made in Italy is constantly increasing and the marginal propensity to spend for Italian products is much higher than that recorded for all other products â&#x20AC;&#x153;made inâ&#x20AC;?. In particular, the Italian brand is the leader in all Gulf countries in a wide variety of areas, from fashion and jewelry, to sectors related to hospitality and tourism, from building materials to the world of design and furniture, to that of catering / food. In addition, in recent years there has also been a strong increase in the flow of tourists leaving from the Emirates to visit Italy and Milan in particular, now unanimously recognized as the most international city of the peninsula. If in this sense Expo 2015 has represented a turning point for Milan, Expo2020 in Dubai will have a similar role as a driver of development for the United Arab Emirates and will represent an unmissable showcase for the world of Made in Italy. For more than ten years EFG Consulting SRL Milan has been supporting Italian companies in their internationalization processes, helping them to expand their market area in the UAE. Now recognized as a guarantee by many business groups and local institutions, EFG selects Italian companies to accompany in the new Gulf market, choosing them on the basis of some essential characteristics to be successful. First of all, the quality of the product and/or service offered and adequate prices; secondly, a solid economic and financial situation and a rea-

Gulf countries

For more than ten years EFG Consulting SRL Milan has been supporting Italian companies, helping them to expand their market area in the United Arab Emirates sonable production capacity; finally, a correct mindset to approach with respect to stakeholders with different cultures and traditions from their own, a predisposition to innovation, good promotional skills and an attitude of predisposition to interpersonal relationships, all essential characteristics to operate successfully in the Emirates and prove competitive. EFG therefore acts as a bridge between Italian companies and Emirates, connecting them with the organization of specific b2b and dedicated Business Forums, which illustrate the emerging business opportunities in the Emirates. The UAE are going through a phase of solid economic growth, which is no longer totally dependent on the oil sector, thanks to a prudent policy of diversification accompanied by ideal conditions including minimum taxation, lean bureaucracy, stable political situation and social security. At a time of stagnation in the Italian market and saturation in the European one, the UAE are therefore a valuable opportunity for Made in Italy, on the one hand representing an extraordinary crossroads of economic and financial interests in a context characterized by ideal conditions for the development of any type of company, on the other hand constituting a fundamental junction and a real springboard for Italian exports not only in the Gulf and Middle East markets, but also in African markets and the Indian subcontinent.

SEPTEMBER 2019 |

Coverstory

Sharjah-Italy ties on the

he UAE and Italy have forged strong bilateral relations over the years. According to the Ministry of Economy, the UAE is Italy’s largest Arab trade partner and the European country is the UAE’s fourth-largest European partner and second largest exporter in Europe. Additionally, UAE exports to Italy grew 7.7 percent during the first nine months of 2018, exceeding EUR 5.12 bn (AED 21 bn), as compared to the corresponding period in 2017. Italian exports to the UAE reached EUR 4.7 bn (AED 19.4bn) in 2018, while the UAE exported EUR 1.1bn (AED 4.5 bn) worth of non-oil goods to Italy. Italian exports are expected to increase by as much as seven per cent by 2020. “Given the historic relations between our countries, Sharjah is looking forward to strengthening its economic and cultural ties with Italy,” said HE Marwan bin Jassim Al Sarkal, Executive Chairman, Sharjah Investment and Development 24 | SEPTEMBER 2019

Upward Trend

In this interview, HE Marwan bin Jassim Al Sarkal, Executive Chairman of Shurooq, outlines why Sharjah is now even more attractive for Italian investments Authority (Shurooq). “UAE is the second-largest economy in the Arabian Gulf and ranks first in the region in terms of FDI inflows, which amounted to EUR 9.34 bn (AED 38.17 bn) in 2018.” Attracting foreign investment is high on Sharjah’s agenda as it continues to diversify its revenue base. “The UAE’s landmark FDI law passed last year streamlines and facilitates capital inflow even better than before, and we are expecting a big boost in foreign investments this year,” said Al Sarkal. “Thanks to the growing number of global trade and economic partnerships within Sharjah’s business portfolio, the emirate is playing a leading role in walking the walk on developing trade with leading European countries such as Italy, in a bid to strengthen its existing trade relations with Italian investors.” He continued: “What Shurooq has been doing for the last 10 years, with the collaboration, partnership and association of numerous state entities in Sharjah, is develop, communicate and grant Italian investors and trade officials direct access to our strong and sustainable free-trade infrastructure, and pre-

sent our new trade and business platforms that open new doors for profitability and growth within our emerging sectors.” The signs continue to show a positive and stable growth, thanks to the wise directives and business strategies implemented by His Highness Sheikh Dr. Sultan bin Muhammad Al Qasimi, Member of the Supreme Council Ruler of Sharjah. As a result of Sharjah’s highly diversified business market and multi-cultural social environment, the number of Italian hotel tourists has been increasing (by three percent in 2018) along with the number of flights from the UAE to destinations in Italy. “Italy is one of the top 10 European trade partners of the UAE, and we have seen this relationship evolve as the emirate played a crucial role in positioning itself as one of the central business hubs for Italian investments in the region,” said Al Sarkal. “We are seeing more Italian companies setting up here and participating in road shows and exhibitions.” He added: “The reason is that Sharjah’s strategic geographic position offers Italian businesses a gateway to expand their footprint in the GCC and other key emerging markets in Asia and Africa. The emirate’s free zones provide an environment that is business and investor-friendly, while companies also benefit from a world-class logistics infrastructure.” Sharjah is home to 277 Italian companies based in its six free zones as well as the mainland. Its diverse population and strong appetite for retail and luxury also make it a very important market for Italian businesses and products. Shurooq’s role “Shurooq regularly organises trade missions around the world. Last year, we had the pleasure of leading the largest delegation in our history to Italy,” said Al Sarkal. “The trade mission enabled us to build on our strong trade relationship with Italy, facilitate business-to-business meetings and explore new trade and investment opportunities.” He continued: “Our efforts in playing a crucial role in the bilateral development between Sharjah and Italy are founded by our deep-rooted understand and historic culture that has been rich between the two for over dozens of years.” He added: “The Sharjah FDI Office (Invest in Sharjah), an entity that works under the Shurooq umbrella and tasked with leading the development and communication of Sharjah’s FDI growth, has signed a key and strategy MoU with the Italian Trade Commission (ITC), which opens new business doors to registered Italian companies in Sharjah, and new Italian businesses looking to diversify and grow assets within the UAE and the region. He noted: “Our efforts in boosting and exploring new areas and sectors that strengthen relations between Sharjah and Italy include key iconic visits, events and participations throughout a number of cities in Italy which include Parma, Padua, Milan and Rome. These visits resulted in wide Italian expansion within Sharjah’s mainland and free zones, and is expected to further attract new opportunities and longterm ventures.” Cultural ties Sharjah has been building cultural bridges with Italy over the years. With its participation as the Guest of Honour at the Turin International Book Fair in May 2019, Sharjah’s influence on Italy’s cultural landscape became apparent too. The kind of

HE Marwan Jassim Al Sarkal, Executive Chairman, Sharjah Investment and Development Authority (Shurooq). bin

interest generated by the sessions, seminars and book events presented by Emirati authors and publishers among the Italian public was incredible. “Sharjah’s relations with Italy goes beyond just economic ties. Both states are also culturally inclined towards each other,” said Al Sarkal. “Sharjah believes that deeper cultural ties are key to economic prosperity. On this, Italy is very

“Shurooq regularly organises trade missions around the world. Last year, we had the pleasure of leading the largest delegation in our history to Italy.The trade mission enabled us to build on our strong trade relationship with Italy”. similar to us. His Highness Sheikh Dr. Sultan bin Muhammad Al Qasimi, Supreme Council Member and Ruler of Sharjah believes that cultural outreach goes a long way in enriching relations between nations and can be the bridge that connects everyone. Under his guidance, Sharjah has introduced the European continent to the emirate’s cultural importance in the region and reinforced its status as a gateway to a major Eastern culture. It was as a token of such contributions that Sharjah has been recognised as the World Book Capital 2019.” SEPTEMBER 2019 |

Coverstory

United Arab Emirates, a land of new

possibilities

xpo 2020 Dubai, the room for growth for Italian companies, the construction industry boom and its opportunities, and the fascination of Italian luxury in the Middle East are among the many reasons that drive investors to choose the Emirates. In this interview, H.E. Abdalla Al Shamsi, Consul General of the United Arab Emirates in Milan, explores this extraordinary time in the history of his country, this magnificent event of global importance, and the privileged relationship that binds it to Italy. What are the opportunities offered by Expo 2020 Dubai? Expo 2020 Dubai will contribute to economic opportunities in the form of new business generation, GDP growth and job creation across the region. Expo will support economic diversification and strengthen existing industries in the UAE and will result in a multiplier effect not only on the national economy, but on the region as well, which will last beyond 2020. The Economic Diversification Policy of the UAE is backed by the countryâ&#x20AC;&#x2122;s commitment to build a knowledge-based economy with a special focus on the educational sector, health, energy, transportation, space and water. The UAEâ&#x20AC;&#x2122;s on-going economic path towards prosperity and sustainable development will for sure be linked to the above mentioned sectors. Can you give us an example of a sector where Italian companies could successfully be involved? The italian expertise could be relevant and extremely competitive, for example, 26 | SEPTEMBER 2019

H.E. Abdalla Al Shamsi, Consul General of the United Arab Emirates in Milan: the Abu Dhabi Urban Structure Framework 2030 is planning the construction of 686,000 housing units and 7.5 million cubic meters of office in the health sub-sectors that are feeding the pipeline of projects and investments opportunities of the healthcare facilities development. Entrepreneurial activity around healthcare research and development is another unserved market in UAE, including in medical 3D printing, the adoption of intelligent and personal genomic medicine, robotic healthcare, nanotechnology and cutting-edge medical solutions such as wearable and implantable technologies. What can you tell us about the construction industry boom in the United Arab Emirates? The Abu Dhabi Urban Structure Framework plan 2030 alone identified a long list of projects and investment opportunities -

in most cases demanding more than a three-fold increase in current supply by 2030. These include the construction of 686,000 housing units, 7,5 million m3 office spaces, 4 million m3 retail spaces, 15 million industrial spaces. In Dubai, a whole new catalog of projects is also creating investment opportunities. Reports indicate that in order to keep up with the surge in population within the Emirate an average of 3,500 housing units should be built per year. Sharjah is taking advantage of the benefits of 3D printing in the construction industry. Fujairah, with its explicit plan to prioritize provision of high-quality residential complexes and improve transport infrastructure by 2040, is also energizing the construction industry sector in the Emirate. Similar projects are also planned in the Emirate of Umm AL Quwain. In Ajman, as well as real estate and construction activities planned within the city, its Municipality is conducting studies to prepare the blue print of the urban planning of Masmout and Al

The UAE is one of the main markets for luxury goods. And the Emirates have a passion for Italian luxury, starting with fashion and jewelry. This is why it is a privilege for us to promote quality Italian products Manama districts, with a milestone set to 2030. Accordingly, a booming the real estate and construction sector in Ajman is taking place, and will continue to be invigorated in the coming years. Delivering a remarkable increase of 45,5% in 2016 over the previous year, the construction and real estate sectors of the Emirate of Ras Al Khaimah’s GDP in 2016 are said to continue generating projects in the construction industry pipeline. Do you believe that Italian luxury brands can find further space for growth in the Emirates? The Middle East is one of the most sensitive markets when it comes to the importance of quality and respect for style. The UAE are consolidating their reputation as one of the principal markets for luxury goods. Italian major fashion brands are having a rapid expansion in the UAE for this reason. Italy stands out for its fashion manufacturing industry, famous all over the world for the high quality and the class of its lines. The UAE appreciate Italian textiles and fabrics obtained through innovative machinery, techniques and processes that lead to the introduction of always-new fashion fabrics and textiles. The same applies to the Italian luxury industry of jewelry craftmanship. The made-in-Italy label is a guarantee of quality recognized by everyone all over the world and especially in the Emirates. The experience perceived by Emirati people when coming in contact with made-in-Italy products is so strong and fascinating for the power of its excellence that, no matter the expense, the products become worthy of the expenditure and a must-have. We are open and glad to welcome Italy’s high value products for which the purchasing power of the UAE market is up to standards with the quality of the products and top customer service. It is a pleasure for my country to engage in the promotion of Italian fashion and luxury brands in the UAE’s economic system.

What are the factors that encourage investors, from all over the world, to choose the United Arab Emirates? With the UAE’s solid and diversified economy and a sustainable development future, the Country is favored by investors for its open economy, large positive surplus, ultra-modern and multi-modal infrastructure, strategic location and access to markets, encouraging business climate and among others, high standards of living. The UAE welcomes foreign investment. With policies enabling economic diversification, buffered by the country’s notable investment climate, the UAE is well placed as one of the global capitals for entrepreneurship. Excellent infrastructural facilities coupled with professional and expertise and personalized service give the UAE the edge. Choices and locations include more than 40 Free Zones allowing 100% foreign ownership of business, industrial centers, commercial buildings, etc. Investment incentives are: 100% profit repatriation, competitive financing costs, high levels of liquidity and strong banking system. Others are: no foreign exchange controls, strong appreciation and fully convertible currency. Low inflation, low customs tariffs between o and 5% for almost all goods. Moreover the UAE has signed 76 agreements, by the end of 2017, for the protection and promotion of investments with most of its trading partner. Investments Protection Agreements aim, for example, to protect UAE investments from non–commercial risks and those related to the transfer of profits and revenues in convertible currency. SEPTEMBER 2019 |

Coverstory

Lombardy protagonist at Dubai’s

Expo 2020

he Region of Lombardy will seize the opportunity created by the Dubai 2020 Expo to revamp the entire Lombard system, aiming at even more ambitious targets. At the core of this model, there is an extraordinary public-private mix, a tight collaboration that has created tremendous results». Fabrizio Sala, the Regional Council Vice President of Lombardy and Head of Internationalization and Research, has, for quite some time, been working on the design and implementation of both Lombardy’s presence in the Italian Pavilion at the Emirate Expo, and the overall strategy of further commercial expansion by Lombard companies in the Gulf.

Can you summarize the reason for being present in Dubai? It will be a great opportunity to showcase all the reasons that make Lombardy attractive for investors, and for tourists. We want to be at the center stage at the Expo, and intend to go beyond the event, by offering digital content and creating multimedia events open to everyone within the municipality of Dubai. We are also funding the participation in carefully-selected industry fairs that take place during the Expo in the Emirates. All these events will feature the Lombard system as a driver to promote the Italian reputation in the world. We are also evaluating the most appropriate institutions to coordinate all our activities, so we can all actually work together as a great team. As the Head of Internationalization, in the past legislature you promoted a strong incentive and coaching program to support the expansion of Lombard companies 28 | SEPTEMBER 2019

Lombardy wants to be at the center stage at the Expo, and intend to go beyond the event, by offering digital content and creating multimedia events open to everyone abroad. What were the results? To summarize with just a few meaningful figures, I can say that we organized 1300 business meetings and signed 29 agreements between the Region of Lombardy and foreign States and Regions. The survey, performed by an external assessment company, showed an approval rating of over 80 percent among program participants. In what ways can UAE markets represent additional business opportunities for our enterprises? They represent a fundamental economic hub for us since they are very focused towards all the Eastern countries. I think they can offer great growth opportunities, in the mechanical and automotive sectors in particular. Let’s keep in mind that our country produces 9 percent of the automotive technology in the EU and 55 percent of the components. The future deve-

lopment of the automotive sector will be focusing on Eastern and Asian markets, in particular China and India. From Dubai’s hub, we will be in a better position to face this challenge. Also in the field of precision mechanics, we have world-class players that are extremely qualified and well established for exporting. We have a strong pharmaceutical exporting industry, and in fact, Lombardy is the number one region in Europe for pharmaceutical production. Also our pharma sector, being strongly linked to fine chemical and biotech, is extremely attractive. Not to mention our evergreen pillars - design, fashion, and food.

UAE markets represent a fundamental economic hub for us since they are very focused towards all the eastern countries Do you think, therefore, that the exporting propensity of Lombard companies has further margins for growth? Internationalization is already working very well in our area. Our export data are extremely positive. According to figures provided by Promos and the Chambers of Commerce, the manufacturing sector In Lombardy has grown, last year, by 4.7 percent. That’s a strong foundation to rely on in order to prepare for further future developments.

Internationalisation activities The Region of Lombardy has made available 40 million euros for an integrated, coordinated and comprehensive strategy to support the internationalization of SMEs. The main new actions to be planned include: - Axis 3 ERDF 2014 - 2020: Among the actions is the “Internationalisation Fund”, a financial instru-ment to support complex projects of SMEs with an already consolidated presence on foreign markets. Just in midMay, the branch for the internationalisation line of the Region of Lombardy was opened within the framework of the Internationalisation Fund, with an initial allocation of 7 million euros. - In accordance with the Chamber’s agreement, a threeyear integrated internationalization pro-gramme was defined for the Lombardy economic system in a number of particularly attractive fo-reign countries, in order to support the growth and competitiveness of Lombardy’s businesses abroad. The programme provides for the following lines of activity: 1. Development of a Country/Sector Matrix in order to orient SMEs in strategic markets and de-fine targeted policies to support the internationalization of Lombard SMEs based on a selective ap-proach, in line with the main recommendations on the subject 2. Awareness raising in the Lombardy region: an intense promotional and communication cam-paign will be implemented in the region, also in integration with the Open Innovation platform. 3. Development of institutional and technical relations and alliances: a programme of at least 10 business missions will be carried out in as many selected countries. 4. Accompaniment to SMEs in strategic markets: an integrated path will be created to accompa-ny SMEs in Lombardy (training, coaching, monitoring, followup) in the strategic markets identified, also through the provision of contributions to support the innovation of organizational models and management of Lombard companies that decide to expand into foreign markets. Activities to support the internationalisation of Lombardy’s SMEs also include the development of brands abroad, communication and advertising activities for the promotion of new products or brands on foreign markets, participation in international fairs in Italy and abroad, the temporary establishment abroad of showrooms/exhibition spaces for the promotion of new products/brands on international markets.

SEPTEMBER 2019 |

Coverstory

Eni in Abu Dhabi:

integration, complexity and efficiency

ew projects, contracts and agreements are further enhancing Eni’s long history in the Middle East. Eni has been working in this area since the 1950s, thanks to the enterprising spirit of the founder Enrico Mattei, who succeeded in building profitable and long-lasting partnerships with oil-producing countries. This significant link will let Eni grow, strengthen integration and increase the refining capacity, thanks to this agreement with Abu Dhabi National Oil Company (ADNOC) Refining, announced last January and completed in July 2019. Eni has acquired a share in the Middle Eastern company’s refining subsidiary. It is one of the most important actions ever in the world of refining. Eni and ADNOC signed a Share Purchase Agreement to enable Eni to acquire from ADNOC a 20% equity interest in ADNOC Refining. The signing of the agreement was witnessed by His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, and Giuseppe Conte, the Italian Prime Minister. The agreements were signed by His Excellency Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, and Claudio Descalzi, Eni CEO. ADNOC also announced that it sold to OMV a 15% equity interest in ADNOC Refining, with ADNOC retaining the remaining 65%. ADNOC, Eni and OMV also agreed to establish a Trading Joint Venture with the same shareholding of ADNOC Refining. The agreed terms for the 20% equity interest acquired by Eni include a cash price of approximately $3.3 billion after deduction of the net debt and subject to closing adjustments, which corresponds to an enterprise value of approximately $3.9 billion (Eni share). This is one of the largest ever refinery 30 | SEPTEMBER 2019

Eni and ADNOC signed a Share Purchase Agreement to enable Eni to acquire from ADNOC a 20% equity interest in ADNOC Refining. The agreements were signed by His Excellency Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, and Claudio Descalzi, Eni CEO

His Excellency Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, and Claudio Descalzi, Eni CEO.

transactions and reflects the scale, quality, and growth potential of ADNOC Refining’s assets, coupled with an advantageous location from which to supply markets in Africa, Asia and Europe. ADNOC Refining operates three refineries in Ruwais (Ruwais East and Ruwais West) as well as Abu Dhabi (Abu Dhabi Refinery), with a total refining capacity in excess of 900 thousand barrel per day. The Ruwais complex ranks fourth worldwide in terms of ca-

pacity and provides for a high conversion Eni will contribute to the technological development of the factor using “state-of-the art” technologies and a deep conversion process sche- complex having already matured, in its European me. The complex has already demonstrated a resilient refining margin thanks refineries, a vast experience in similar processes (such to its competitive advantage in terms of as fluidized catalytic cracking, hydrocracking, residue integration, economy of scale, complexity and efficiency of the plants, proximity to conversion and desulphurization, coking and others the upstream fields which supply the crude and gas feedstock, and barycentric position to Eastern and Western markets. Furthermore, a developState and ADNOC Group CEO, said: ment plan is already defined to further improve the complex’s “We are delighted to partner with Eni and competitiveness and profitability by increasing the flexibility of OMV in our refining business and the crude supply and energy efficiency. new trading company. Such partnerships Eni will contribute to the technological development of the follow our leadership’s wise guidance to complex having already matured, in its European refineries, a unlock and drive greater value across our vast experience in similar processes (such as fluidized catalytic business. cracking, hydrocracking, residue conversion and desulphurizaThese innovative partnerships will support tion, coking and others) and in the optimization activities to maour ambition of becoming an internatioximise the margin of refined barrels. This acquisition will allow nal downstream leader with the flexibility Eni to further strengthen the resilience of its refining business by to respond quickly to shifting market nereducing the overall Eni’s refining break even target margin by eds and dynamics. They will help enable 50% down to around 1,5 $/bl. our objective of unlocking even more vaFurther value will be created as Eni and OMV join ADNOC lue from every barrel of oil we produce. in setting up a new trading joint venture, with the same equiWorking closely with our partners, we will ty shareholdings as the ADNOC Refining partnership. Once also deliver further efficiencies across our established, the trading joint venture will be an international operations and improve asset and business exporter of ADNOC Refining’s products, with export volumes performance” equivalent to approximately 70% of throughput. Domestic supEni’s CEO, Claudio Descalzi, said: “Theply within the UAE will continue to be managed by ADNOC. se agreements consolidate our strong His Excellency Dr Sultan Ahmed Al Jaber, UAE Minister of partnership with ADNOC. In the space of less than one year, we have been able to create a business hub with world class upstream operations and a material and efficient refinery capacity with further potential growth. This transaction, which allows us to enter the United Arab Emirates’ downstream sector and represents a increase of Eni’s refining capacity thanks to this deal 35% increase in Eni’s global refining capacity, is in line with our announced strategy to make Eni’’s overall portfolio more geographically diversified, more balanced along the value chain, more efficient and Eni’s equity interest in ADNOC Refining more resilient to cope with market volatility.” Eni has been present in the UAE upstream sector since march 2018 when it was awarded a 10 percent interest in ADNOC’s Umm Shaif and Nasr concescash price sion and a 5 percent interest in the Lower Zakum concession, followed in November 2018 by the award of a 25 percent interest in the Ghasha Concession, ADNOC’s Eni refining throughputs on own account 2017 mega offshore gas project. On 12 January this year Eni was awarded a 70 percent interest in offshore exploration blocks 1 and 2. In addition to the United Arab Emirates, Eni production of petrochemical products 2017 in the Middle East Eni is also present in Oman, Bahrain, Lebanon and Iraq.

The numbers of an agreement

+35% 20%

~3.3 bn $

24.02 Mton 5,818 kton

SEPTEMBER 2019 |

Coverstory

Expo 2020 Dubai, a big chance for

Made in Italy

by Riccardo Venturi

orenzo Bagnoli, Emirates Diacron Group Partner with a long tradition of working alongside Italian companies in the UAE, in this interview with â&#x20AC;&#x153;ITâ&#x20AC;&#x2122;sâ&#x20AC;? magazine explains what are the opportunities that open with Expo Dubai 2020. Expo 2020 Dubai is planned to start in October 2020. Is it the right time to enter the United Arab Emirates market? Yes, indeed. Dubai Expo 2020, in all likelihood, will have a strong economic impact on the country and will create a number of opportunities, which the companies already present on the market will be able to fully take advantage of. In general terms, any company that seriously wants to enter this market and believes to have the potential to compete, cannot disregard the fact that a presence in the field is crucial. The GCC (Gulf Coopera32 | SEPTEMBER 2019

tion Council) markets have now entered a mature phase of their development and for years have been attracting companies from all over the world. The point is that there is strong competition and only the players well-structured at the local level, will be able to give continuity and develop their business over time. Besides the countdown to the big event, what is the current state of health of the UAE economy? In the last 2 to 3 years, the Gulf area in general has experienced a certain slowdown in the economic cycle, caused by multiple factors such as the trend in the price of oil, the international macroeconomic context and some political tensions in the Region. However, the situation remains dynamic and above all from 2018 onwards, the most strategic sectors, such as Oil & Gas and Infrastructure, are showing significant recovery signs. In the Emirates, sectors such as tourism, services and trade are still equally important and gradually growing. It is expected that Expo 2020 will contribute to giving a vital boost to the local

economy and there are all the preconditions for this to happen. What are the characteristics that an Italian company must have in order to expand in the United Arab Emirates with a good chance of success? I would summarize the main features with four terms: product, price, presence and credibility. In the Middle East as well as in the United Arab Emirates these four factors are essential and interconnected in an essential way, without a good product and a good price, it is very difficult to find commercial outlets in the region. Without the presence and credibility that comes from working well and being present on a continuous basis at a local level, it is equally difficult to grasp the opportunities that the market presents. Is the Made in Italy appeal an element that can make a difference?

Product, price, presence, credibility: in the Middle East as well as in the United Arab Emitìrates, these four factors are essential and interconnected, necessary to grasp all the growing opportunities that the market presents It certainly still is, as long as the quality is combined with competitive prices and the ability to manage the business in the manner required by the market in this region of the world. The ability to understand the cultural differences, tastes and local needs, and to create positive interpersonal relationships with customers and clients, will make the difference between the success and the failure of a business. What are the mistakes to avoid and how do you make sure that the companies that you are consulting do not make those mistakes? In my view, an approach that is not correct and that we sometimes find in some companies is to think that “Made in Italy” can, by itself, be sufficient to succeed in the Gulf and that it is the local market that needs the Italian companies and not vice versa. It

is up to the Italian, or foreign, company in general, to adapt and conform to the needs and methods of conducting a business in the complex markets of this Region. Do you believe that Italy will be at the center stage at Expo 2020 Dubai and that therefore the occasion will be an important showcase for our companies? Yes, we believe it will be an excellent showcase for the promotion of “Made in Italy” and our high-end products. Is there a growing sector, perhaps less known than others, where Italian companies could find space in the UAE? Besides traditional sectors such as Oil & Gas and Infrastructure, we see a lot of excitement and dynamism in the IT, Industry 4.0, Services and Medical sectors. These are all sectors considered strategic by the EAU Government, where large investments are currently made also with the direct or indirect patronage of the public authorities. A further, fundamental aspect to consider is that the players present in the Emirates should take advantage of the country as the base for future commercial expansion throughout the Gulf Region, and potentially up to East Africa, Sub-Saharan Africa and Sub-Indian Continent. The geographical position and the connections by sea, air and land, with all the countries of the area, in addition to strong economic exchanges, offer a great opportunity for expansion and development for Italian companies interested in operating in these markets.

Diacron, helping companies to streamline their strategies Diacron, established in 1995, provides accounting, tax and corporate services. Diacron team consists of talented and young professionals and offers specific consulting services on international business and fiscal matters in addition to corporate services, helping entrepreneurs and enterprises who wish to or have already expanded their business abroad. By providing a subject-matter expertise on both the international and the local regulatory framework, Diacron team

focuses on providing the right attention to all technical issues, challenges and deliverables that clients may face in their activities abroad. Diacron team’s mission is to help clients streamlining their strategies across their business, their fiscal and corporate framework, nonetheless providing effective solutions on human resources management and on administrating all deliverables required. Diacron has been present in Dubai since 2008, where it offers, among other

things, corporate services such as analysis and feasibility studies on local legislation and settlement projects in the UAE; company formation both in the Free Zone and in the Mainland territory; administrative services, such as: assistance in opening a bank account in a local bank, work/ residence permits management for staff and investors, licences management, cancellation of work permits, assistance in termination of employment contracts.

SEPTEMBER 2019 |

Coverstory

More sanctions, please:

Russia is strenghthening by Riccardo Venturi

The sanctions have paradoxically improved the Russian economy. The country has mantained more or less the same export volumes, while dramatically reducing imports, and has become an exporter in the food sector

oberto Corciulo, partner and president of IC&Partners, with a deep knowledge of the Russian market, tells “IT’s” magazine about the opportunities and difficulties for Italian companies in Russia.

Is it true that there is an affinity between Italians and Russians that also facilitates business? The double-headed eagle of the Russian coat of arms has an eagle that looks to the west and one that looks to the east. Now however, they both look east, even if Russia’s approach to China has been dictated by the search of economic gains, and not by a common cultural ground. Despite both being communist, the two countries are two different worlds and cultures. The Russians are, and feel, much closer to Europeans. They consider themselves Russians, living in Europe, and feel particularly close to Italians. If you have a look at the cultural affinities map on crossculture.com, this fact is crystal clear. Paradoxically though, the biggest investors in Russia are their historical enemies, the Germans. They have a relationship based on interest, but have always hated each other, with millions of people having died in Stalingrad. Italy, for the Russians, is a small friendly paradise in the middle of the Mediterranean. Beyond that, there is also cultural affinity, with the architecture of St. Petersburg being Italian. How have the sanctions, established in 2014 by the US and the EU as a result of the Ukrainian dispute, impacted the Russian economy? The Russia Insider website coined the slogan “more sanctions, please”, which effectively expresses the fact that the sanctions have paradoxically improved the Russian economy. The country has maintained the same export volumes, while dramatically reducing imports and has become an exporter in the food sector. The counter-sanctions on agricultural and food products have in fact pushed the internal agricultural industry, so Russians have become both produ34 | SEPTEMBER 2019

cers and exporters. For example, they have resumed exporting pork. In 2018, Russia recorded a 200 billion dollar trade surplus. The reality is that the Russian economy has been hit more by the drop in oil prices from 100 to 30 dollars a barrel resulting in a strong devaluation of the ruble, from 40 to 100 for about one euro. In a country like Russia, that is a goods importer, this has caused a collapse in imports, since the middle class are no longer able to buy those goods. Let’s keep in mind that 75 to 80 percent of Russian GDP comes from raw materials extracted by State-owned companies. The sanctions and the collapse in oil prices have caused a push towards a self-sufficient economy, under the umbrella of the “Import Substitution” label.

OTHER WORLDS

What is the Russian import substitution policy? Between 2014 and 2015, a number of regulatory measures were put in place to limit or prevent the purchase of foreign products by the Russian public administration. In addition to that, a new economic policy was implemented, aiming to initiate manufacturing activities directly in Russia to attract foreign investments in strategic and basic sectors, like mechanics, hi-tech, agriculture and food, alongside oil & gas, with a special focus on equipment supply, infrastructures, and health care. At the same time, internal regulations have been significantly simplified to attract investment. New legal frames have begun to protect foreign investors and overcome the opacities typical of the Russian economy. Extremely beneficial was also the creation of the so-called ZES, Special Economic Zones, areas where the State and the Russian Regions facilitate investments. This legislation, combined with a faster process for starting a business, has moved the

The business model has changed, with Italian companies now mainly establishing production facilities, manifacturing and assembling according to Import Substitution logic country to the 31st place in the world on the World Bankâ&#x20AC;&#x2122;s â&#x20AC;&#x153;easeâ&#x20AC;? of doing business index. Italy, for reference, is ranked 51st. Is exporting to Russia that complicated today? The certification system is a non-tariff barrier that still has to be overcome. Russia, which entered the WTO in 2012, alongside Belarus, Kazakhstan, Russia, Armenia, and Kyrgyzstan, created the Eurasian Economic Union in 2015. That led to the introduction of the EAC (Eurasian Conformity) products certification, equivalent to the European EEC. Since that time, it has been mandatory to go through local entities in order to certify goods accordingly to standards put in place by the Russian regulatory authorities. Furthermore, there is the obligation to appoint a legal representative on site who is liable for any damages. To be able to sell clothing, for example, the garments must be EAC certified, a mark that has to be on the label. Starting in July of this year, before importing in Russia, a chip will have also to be applied to clothing and footwear. It makes the market more transparent, addressing a long-standing issue for importers to Russia, but also less flexible. How has the activity of Italian companies changed with the advent of the Import substitution?

We have had an office in Moscow since 2003, and have grown from 35 people to more than 80 today. The business model has changed, with Italian companies now mainly establishing production facilities, manufacturing and assembling according to Import Substitution logic. To establish a production facility, a minimum turnover of 30 million euro is required. In a small company, an entrepreneur is able to manage the activity on his own within a radius of 3,000 kilometres. On Monday, he is at the main office. On Tuesday, he jumps on a plane, travels for 3 hours and follows up his business, then back to Moscow. Although it must be said that today it is hard to enter sectors where goods are already manufactured in Russia. The Import Substitution guideline obviously favours cheaper domestic products. For example, in the furnishings business, there are many Russian companies that hire Italian architects who, making on average 23,000 euro per year, are underpaid in their own country. To manufacture a kitchen, they buy the wood in Russia, the hardware in Italy, the oven in Germany. The design is Italian and the price is 50 percent lower, because you have no duties or transportation costs. A workaround for SMEs that do not have the size to manufacture in Russia, resides in working with licensees, having patents and seeking out Russian partners. Italy has become a small paradise in the innovation safeguard. If you have a patent with a well-protected technology, you can sell it, or license it. In our opinion, this the angle that innovative companies should pursue.

IC&Partners, 15 years in Russia IC&Partners is a consulting company that works at the side of companies to support their internationalization process. Characterized by a wealth of expertise and solid experience gained over time by working alongside companies and business people, IC&Partners operates in a number of sectors and markets, where it is present through its subsidiaries. It offers its clients a wide range of consulting services on international marketing as well as on tax and legal issues, and support in the accounting, administrative and labor-law fields. IC&Partners has developed a broad and structured consulting offer, which takes into account all the diverse needs of a company that undertakes a path to do business abroad. IC & Partners has had an office in Moscow for over 15 years, which now employs about 80 people. Its in-depth knowledge of the Russian market, its opportunities and pitfalls make it the ideal partner for Italian companies interested in exporting their goods, producing directly in Russia, or looking for a local partner to license a patent.

SEPTEMBER 2019 |

Coverstory

Belt and Road Initiative, the route to Chinese market by Riccardo Venturi

Leveraging on local commercial partners is certainly the most suitable way to access the Chinese market, even if it is possible to have a “direct” entry, although it is quite complex and different from those in Europe

ederico Sutti, Dentons Italy Managing Partner, one of the leading experts in the accompaniment of Italian companies in China, explains to “IT’s” magazine what kind of opportunities are opening up for Italian companies with the Belt and Road Initiative. After signing the Italy-China trade agreements on the Silk Road, do you think it is the right time for Italian companies to try to enter the Chinese market? Many Italian companies have already been in the Chinese mar36 | SEPTEMBER 2019

ket for a long time and in different ways, including manufacturing, distribution, and trade. I think the Chinese market certainly has great potential, but it is also highly competitive and in some cases complex for the European mentality to comprehend. For that reason, it takes a lot of flexibility and the ability to adapt your mindset. Do you believe that the signing of these agreements will lead to a real quantum leap in trade between Italy and China? The political message is certainly important. At the same time, we must remember that Italy must closely coordinate with other European countries since proceeding alone is not an option. Certainly, the infrastructu-

OTHER WORLDS

The choice of partners, both industriial and purely professional, is of absolute importance, as it can determine the success or failure of an initiative re sector will increasingly attract Chinese companies and we will probably see a slow turnaround in Chinese investments abroad, after the almost total block since the end of last summer. In terms of the products for import/export, it’s hard to predict if there will be a change directly linked to the agreement itself. What are the best ways to enter China? What are the main opportunities that can be found in the Chinese market? Leveraging on local commercial partners is certainly the most suitable way, even if it is possible to have a ‘direct’ entry into the market, although it is quite complex and different from those in Europe. The biggest opportunities are in the high-end market, where there is a growing middle class that is looking for quality products. The domestic Chinese market does not yet offer the necessary terms and volumes in this field. What are the mistakes most often made by Italian companies in their approach to the Chinese market and how can one avoid them? As I said, the most important aspect is cultu-

Dentons means China Following the 2015 merger with Dacheng, one of the largest and most prestigious Chinese law firms, Dentons now has 47 offices in China with over 5,100 professionals. Dacheng was one of the very first Chinese law firms, and from the beginning, has diversified its offer by focusing on a widespread coverage of the entire Chinese territory. The strong local presence beyond the large coastal cities, into the second and third-tier cities, guarantees Dentons’ professionals an in-depth knowledge of the entire domestic market and its regulatory system, allowing the firm to assist its clients nationwide. This is why after opening its first office in Milan in 2015 and its second in Rome in 2016, Dentons is the ideal partner for Italian companies that want to develop business in China. Not only for the knowledge of the market and local institutions, but also for the cultural sensitivity that only a Chinese firm can offer. Today, in Italy, Dentons has over 110 professionals, who have

twenty years of experience in assisting Italian and international clients. Dentons is authorized by the Chinese Ministry of Justice to carry out legal activities in the homeland also in the judiciary and without limitation. Italian companies interested in investing in China can rely on the support of the local team and the global network of the law firm. The firm can cover all the key needs, in addition to the establishment of companies, joint ventures, M&A operations, and capital investment. Dentons is also able to assist customers in the different countries linked by the new Silk Road. More precisely, Dentons covers around 95% of the countries involved (62 out of 65) and provides assistance on a global basis. Furthermore, the Italian team is active in the Belt and Road Initiative, the largest infrastructure and commercial development plan in the history of humanity, launched by the Chinese government aiming to connect Europe with the major Asian markets.

ral and no matter what industrial sector it belongs to, it is essential to refer to local professionals, studying the rules of the local market in depth. Furthermore, the choice of partners, both industrial and purely professional, is of absolute importance, as it can determine the success or failure of an initiative. Partnering with companies with a proven track record of cooperating with non-Chinese investors, is very important. Is there a promising sector and/or an area that has been overlooked by Italian companies in China? Italians started investing in China many years ago and I can safely say that in all sectors and industries there are Italian companies that have been on the market for some time. At the moment, one of the areas of greatest growth is health care, where there is a strong increase in demand and an inadequate local offer, both in terms of product quality and service. SEPTEMBER 2019 |

MADE 40

in Italy 44

DICEMBRE 2018|

MADE IN ITALY

Innovative and

Made in Belluno

there is nothing quite From ancient medical prosthesis to modern fashion accessory, they are the flagship product of our manufacturing industry. The first glasses were made in Veneto. Today, Italy is the world leader in the high-end category, with 90% made for export by Marco Scotti

40 | SEPTEMBER 2019

like them

he first ones date back to 1352. A painting by Tommaso da Modena, frescoed in Treviso, portrays Cardinal Ugone da Provenza wearing a pair of pince nez lenses (without arms). However, according to sources, in Roman times, the possibility of “correcting vision” through glassy objects was already known. Pliny writes, for example, that Nero used to watch gladiator fights in the Colosseum through a piece of faceted emerald. The official invention of glasses as an external prosthesis capable of “simple ocular functions” is traced back to the 13th century in Veneto. A hundred years later, however, in gondolas on the canals of Venice, you could see ladies and aristocrats, protecting themselves from the sun with very large colored lenses, to avoid the long-despised suntan that was considered characteristic of the lower class. In the history of modern glasses, therefore, all roads lead to Veneto. It is no accident, that to this day, the most famous eyewear district in the world is located in the territory of Belluno, where about 300 small, medium and large companies employ over 12,000 workers (out of the almost 18,000 in all of Italy) around the areas of Cadore, Agordino, the Ponte delle

Alpi and Val Belluno. This cluster of companies specializes in all types of eyewear production: prescription frames, sunglasses, small parts for glasses, cases and, to a lesser extent, lenses, as well as machinery for the sector. In this very area, side by side, you will also find the large players in the sector including Luxottica, Safilo, De Rigo and Marcolin. Originating in the district, these companies are international in size with leading positions on the global market. They distribute their own brands as well as licensing to third parties and SMEs that are focused on manufacturing products, components or specific processes, which are sold to clients or licensees with their own brands or distributors. The latter, not being able to benefit from large numbers and huge capital, have instead made their strengths craftsmanship, quality, and innovation, becoming a design and research point of excellence. For example, by combining materials such as 3D printed polymer with metal, you create the progressive lens for those always

A record achieved thanks to the big names, and confirmed by the former subcontractors who invested in their own products plugged-in, multitasking, far-sighted individuals. As has done Essilor, one of the big global names in the care and protection of eyesight, with the launch of their “Varilux X” lens last October. «In 2017 we had an export growth of 2.6 per cent for sunglasses and 3.9 per cent for prescription frames,» explains Giovanni Vitaloni, president of ANFAO, the national association of optical articles manufacturers, and MIDO, the most important international trade fair in the sector. «Paradoxically, in a general economic moment, which seems to have definitively overcome the crisis, Italian eyewear sector grows less than other sectors. In reality, we have managed the economic crisis of recent years, faster and better.» Before arriving at the turning point of the sector, which coincided with the “bubble” of 2008, it is interesting to understand how the world of eyewear changed in the 70s, when glasses evolved from mere medical and ophthalmologic prosthesis to trendy fashion accessory, and then subsequently booming industry.

The New Made In Italy, here are the glasses with a great story to tell It is among the few companies manufacturing titanium glasses in Europe, and is growing at double digits every year. In 2017, it exceeded 10 million. Pramaor owns the avant-garde brand Blackfin, which is led by Nicola Del Din, son of the founder, Maria Luisa Pramaor. Maria Luisa, one of Luxottica’s first employees, started an artisan laboratory after leaving Del Vecchio’s multinational company. “We specialized in the production of titanium eyewear, which requires special machinery and highly specialized labor,” explains Nicola. At the beginning, the company’s know-how was at the service of other companies, “as contractors,” he adds, “we had to accept the conditions imposed by the client. Hence the decision to put all our expertise in Blackfin.” In 2010, Pramaor stopped all subcontracting activity and from 2012 began to use its own brand. “Having a great product isn’t enough, you also need to have a story to tell,” concludes Del Din, “story-telling becomes an added value. In this way Blackfin, high quality titanium glasses, have also become an emotional journey. The company coined a term, “neomadeinitaly” (the New Made in Italy) which means actually and rigorously, designed and produced in Italy. In the Dolomites”.

SEPTEMBER 2019 |

MADE IN ITALY

Italian SMEs are able to compete and surpass anyone: in fact, today, Italian glasses are worth 84 billion. 128 billion within 5 years The momentous turning point: luxury becomes accessible Sunglasses, therefore, were the driver for change. First linked to aviators and outdoor activities for extreme sportsmen, like mountain climbers, sunglasses are no longer a tool for day-today needs, but instead have become an important element of style. This is why the big fashion labels rushed into the market and signed exclusive license agreements with the top Italian players in the sector, established in the Belluno district. It is the world of accessible luxury, of brands like Tom Ford or Gucci, 80 per cent of which are manufactured by Italian companies. Wearing a signature pair of glasses became, not just trendy, but real status symbols. In the 90s, that led to the acquisition of the Ray-Ban brand (literally “ray barrier”) by Luxottica. Leonardo del Vecchio’s company relaunched the brand globally, making the most of American high-performance lenses. In the 2000s, however, designer eyewear was no longer enough, it wasn’t as exclusive as it used to be, because it had become a product for the masses. This new demand from clients looking for unique products has opened the door to the small and medium-sized manufacturers who previously sold their products to large companies as subcontractors. And they demand a quality product with history. It’s not that these consumers are turning their noses up at all brand names, but the preference is for “niche” Italian brands rich in tradition and heritage. And here we are in the era of cutting-edge brands that focus on innovative, resistant materials and design. «In addition to the 4 to 5 large multinational giants that brought Italy to the top of the global market, the vast majority of Italian manufacturers are small to medium-sized companies that make craftsmanship and attention to quality their strengths,» confirms Giovanni Vitaloni, «and who share a long tradition of excellence in the design, manufacturing and marketing of products with a high level of originality and innovation. Their

business proposition is based on this, rather than on competition in terms of price.» Moreover, the Italian SMEs in the eyewear sector have been able to react to the global crisis of 2008 by investing in themselves. «After about ten years of work and, thanks also to the efforts of ANFAO and events such as MIDO,» Vitaloni concludes, «we find that today there are dozens of small Italian companies that are able to compete with their products against French or Scandinavian SMEs, often exceeding them. This is particularly evident when we organize internationalization initiatives abroad with a few dozen participants. Until a few years ago, these numbers would have been unimaginable.»

At Rigo’s: the customer has been at the center for 40 years This year marks 40 years. De Rigo, a group based in Longarone, is a world leader, distributed in 80 countries, across Europe, Asia and the Americas, with its own brands Lozza, Police, and Sting and various licenses including Blugirl, Blumarine, Chopard,

42 | SEPTEMBER 2019

Nina Ricci, Trussardi, and others. “The domestic market represents just under 10 per cent for us, while the Old Continent reaches 57 per cent”, says Michele Aracri. “The big transformation in the eyewear sector is taking place in the retail channel,

large groups or retail chains. Due to non-stop acquisitions, they have been strengthened by introducing their own product lines in the market entry area, with products made mainly in Asia.” Another phenomenon to consider, especially for the sunglasses, particularly

in the lower range of products, is the online sales. “We are carefully evaluating this even though at this time our focus is still the optician and client service, that in the online world cannot be offered, a crucial aspect especially when speaking about vision”.

MADE IN ITALY

Sardinia

on the road

he arrival point is also the starting point. It is not just trivial philosophy: we disembark from the ferry in Olbia and head out for a six days (intense) trip to discover Sardinia. Greeted by the sun, the sea and a cool breeze, we open the top of the convertible et voilà - we are off. Just us and our flying carpet with 16inch alloy wheels. A 500 Collection. But not just any one we like to think that it is the two millionth example coming out, amid applause, from the production line of the Tychy plant in Poland. A queen. On the outside, two-tone white and grey with chrome detailing. Inside, the 85 hp TwinAir Turbo engine. She, along with us, is free to choose our destination day by day, free to fill our tanks with beauty, to bathe in the waters of beaches and coves, to rest in the cool shade of an evergreen oak, to dine on a plate of Sardinian Gnocchi with Sausage Ragu or to sip a glass of cold Vermentino ... Free to move, but also to stop. Us and our 500, which is already a timeless icon. Manufactured in more than two million units, 80 percent sold in more than 100 countries around the world, the 500 is the market leader in nine European countries and on the podium in another seven. For the last five years, the 500 has been the number one in Europe in its segment (with a share of 14.6 percent at the end of 2017). In the eleventh year of its life, incredibly, the Fiat 500 established its sales record in the first quarter of 2018, with almost 60,000 units sold in Europe. Including ours that, like us, wants to travel. Even though there are no toll roads in Sardinia, we will try to avoid the Carlo Felice 131 highway, which cuts the island in two, and instead we will drive just on the long and winding

secondary roads, a far more interesting route. We hit the road at dawn. Actually, it all starts from dawn - with the spectacular show the rising sun gives us off the coast of Olbia. A coffee with a pistoccu (a local flat bread) and here we go. We head north towards Porto Cervo. Curve after curve, a dreamlike landscape unfolds. It’s still chilly, but by the Golfo degli Aranci, we can’t resist the temptation to travel with our hair

500 collection Engine

Gasoline 0.9 TwinAir Turbo 85hp Maximum power

62.5 kW (85 hp) @ 5500 rpm Full speed

173 km/h Acceleration

0-100 km / h 11.0 sec. Consumi

(l/100 km) 3,8 Ciclo combinato Mileage (l / 100 km)

During our trip we honk every time we encounter another 500. It’s easy - in eleven years more than two million units and about thirty special series have been manufactured 44 | SEPTEMBER 2019

3.8 Combined cycle Ecological engine level

Euro6

Discovering the island and its pristine scenery driving a timeless icon, the Fiat 500. Greeted by the sun and the sea by Marina Marinetti

SEPTEMBER 2019 |

MADE IN ITALY

in the wind: the electric control lifts the hood in ten seconds and, voila’, we say goodbye to its warmth (and silence). We want to show off in our convertible after all, we are about to reach Porto Cervo. A quick visit, just for the “I was there too” ritual, and then off again. The Costa Smeralda offers postcard views. Ten minutes from Porto Pollo, in the municipality of Palau, we enjoy our first swim at the Isuledda, the beach on the Isola dei Gabbiani. Under the watchful eyes of onlookers, from the trunk we pull out all the tools of a weekend warrior: mats, fins, snorkeling masks, snorkels and the inevitable picnic bag with (warm) sodas and (cold) sandwiches. If 185 liters of trunk space seems not enough, you can get up to 530 liters by putting down the rear seats (which can be split). We didn’t need it. Capo Orso, Cape Bear, is a must-see. This imposing granite formation has earned its name from its shape, carved over millennia by the brackish winds. We want to see it up close and so from the cove we walk the path along the lighthouse coast. The 700 meters climb (uphill) rewards us with the view that can be enjoyed at the top - the most beautiful in the Mediterranean, they say. And we just don’t feel like denying it. But now, after an hour of walking, we just want to go back to the comfortable seats of our 500. Padded, enveloping and even a little “compressing”, slightly raised and adjustable - in a word, comfortable. They are strictly two-tone, with the gray striped seat cushion and backrest, alongside the upper ivory bezel, signed by the embroidered 500 logo. Now our destination is the sunset and Santa Teresa di Gallura, that offers

46 | SEPTEMBER 2019

us the view of the white cliffs of Bonifacio tinted in red ... a slightly different shade from the Cannonau we are about to taste. Impossible to choose between the two of them. On the second day of the trip, we are already beginning to speak a little bit of Sardinian: “a si biri”, that means “goodbye”. We say it to everyone: we have just arrived, but we already know that when we leave, we will also have to come back. Small islands, rocks, white beaches and glimpses of crystal clear sea are appearing, one after the other, along the way. It is the Sardinia of postcards and it is real, within the reach of our wheels. Driving around, we feel like honking each time we meet another 500. It happens a lot. In Sardinia as in Europe. In 11 years, putting together the Fiat and Abarth models, 30 special series have been manufactured, and this is one of the secrets of an uninterrupted success. Fiat 500 is a “trend-setter” that has remained true to itself, but has also been able to reinvent itself over time with special editions, exploring new territories for a city car, such as fashion, luxury yachting or connectivity. We give up the trip to the Archipelago of La Maddalena to not lose even a minute of driving - curve after curve, gear after gear, the response of the 500 Collection is (almost) sporty, thanks to the trim, the suspension and the lively engine. Speaking of gear, we could have opted for the Dualogic paddle shift robotised gearbox, but we are traditionalists and we preferred the five-speed manual gearbox, featuring a short stroke lever and quick couplings. Not to mention how it hugs the road, even on slightly uneven sections, it doesn’t lose precision. Having lots of fun driving, among herd of sheep and nura-

ghi, we arrive in Castelsardo and our 500C Collection takes us back to the 50s or even earlier, through narrow and steep alleys, fishing nets and on top of the rocky spur, the Doria castle. Outside the houses, women are immersed in weaving some pòntine, the typical baskets with a lid, that are now made of raffia since the dwarf palm became a protected species. We get back on the road, towards Stintino. With tourists flocking to the tropical beach, finding parking is a feat, but not for our 500 Collection with its 357 centimeters in length. For overnight stay, we head to Alghero. We indulge in an aperitif at the port, resisting the temptation to write on the side of the 500 Collection “tender to ..., with the name of one of the mega yachts moored a few steps from the old town center. After all, for its sixtieth anniversary last year, didn’t the 500 have a special Riva Edition, named after the prestigious Italian yacht builder? On the third day of our journey, the alarm goes off at dawn. We want to make a trip to Capo Caccia, before entering the E25 road toward Bosa. The route winds through archaeological sites and ancient megalithic buildings, called “nuraghe”. We stop at the Palmavera complex to visit the towers, made of limestone and sandstone blocks, the outer fortification and the huts. We continue to the top of the cliff, but decide not to climb the 656 steps of the Escala del Cabriol, that lead to the Grotta di Nettuno. This time we pass the turn and prefer to go back down to Alghero and the Riviera del Corallo on the SP49 road to admire the breathtaking landscapes of the area. We have 45 kilometers ahead of us - on the right, the cliffs overlooking the sea, on the left, deserted landscapes, farmhouses and sheep. We would have liked to tell you about that time when a herd blocked our path. A textbook anecdote. But sorry, it didn’t happen. The air cools down, up here, and we begin to be feel a bit fried by the sun - we close the electric top and start playing with the dashboard. This new special series offers a lot of technology: the Uconnect 7’’ HD LIVE radio, which can integrate with Apple CarPlay and Android Auto, the Tom Tom car navigator, the 7-inch TFT display, the widest in its category, and above all, for us music lovers, the Beats Audio Hi-Fi system. We retrieve sunglasses and candy from one of the numerous cockpit storage compartments and enjoy the view. In Bosa, we are flabbergasted by the colors. The blue,

We would have liked to tell you about that one time the sheep has blocked our path. A textbook anecdote. But sorry, it just didn’t happen

pink, yellow, green and purple houses merge into an evocative kaleidoscope. Is it the Malvasia wine talking? The best is yet to come. On the fourth day of travel, we were planning to see the natural arch carved by the sea at the S’Archittu limestone cliffs, or go for a swim at Is Aruttas, a beach where the grains of sand are shaped like grains of rice. But we are missing the city atmosphere and so, even though we had promised to avoid the big centers like the plague, we decide to head toward Oristano. We want to enjoy the agility of the 500 Collection in traffic and we kind of crave the beep beep of parking sensors. Besides, we haven’t yet tested the “City” function: we press a button and the steering becomes lighter. Not satisfied with breaking promises, we hurl down the SS131 road, heading to Cagliari. Pushing the 0.9 liter, 85 horsepower TwinAir turbo to the limit. It might be a city car, but the 500 Collection isn’t batting an eyelid with these long sections of the highway. The canvas top does not make you wish for a metal roof and offers good sound insulation. Even at 130 kilometers per hour it’s clear that, if you want, there is room for pushing more. No worries about safety, the 500 Collection has excellent equipment for a compact car, with 7 airbags (including the ones for the rear seat passengers’ heads and for the driver’s knees), a reinforced body and increased braking system. In less than two hours we arrive in Cagliari, which, like Rome, sits on seven hills. But we don’t stop there. Going to Pula, 30 km to the west, or to Chia, a little further on, would be too obvious. Instead we drive as far as Porto Tramatzu, in the Sulcis, to go for a swim in the beach that became public at the end of the 50s and has been used until recently, as a beach establishment for the military, one of the five that have just been released by the Ministry of Defense. SEPTEMBER 2019 |

MADE IN ITALY

«You won’t grow if you don’t

team up with suppliers»

This is Maire Tecnimont’s mantra, a global leader in industrial plant engineering and oil downstream - “cooperation is an enabling factor” according to the group

by Vincenzo Petraglia

uccessful businesses cannot disregard an effective and synergic supply chain. It is no coincidence that a giant like the Maire Tecnimont Group, one of the major global players in industrial plant engineering, has always focused on the perfect integration of all the partners in its supply chain, as demonstrated also by the organization, for the second consecutive year, of the “Seenergy” event, which was held in June in the Milan headquarters of the Group, in the Garibaldi area. Together with all the partners, it’s an opportunity to discuss how to face the global energy market challenges in an ever more effective way. The event brings together as many as 70 managing directors of partner companies, which together represent almost 900 billion euros in turnover and a workforce of 4 million of people in the world. “Procurement is one of the levers in our business where we put the most focus and the cooperation between us and our partners is the key to innovating and being competitive in the international market,” explained Fabrizio Di Amato, chairman and founder of the Group, to Economy. A strategy that pays given that Maire Tecnimont, as one of the most prestigious Made in Italy champions in the world, is present in as many as 40 countries with 5,500 employees and 3,000 partners, € 3.5 billion revenues in 2017 (up 45 percent compared to 2016), and € 126.6 million net profit (up 48 percent), along with an order book valued at € 7.2 billion. Listed on the stock exchange for ten years, Maire Technimont has made best practices its strong point, exporting technology and business organization everywhere and 48 | SEPTEMBER 2019

becoming a leader in different markets, including international engineering & construction, technology & licensing, in addition to energy business development & ventures, with specific expertise in plant engineering, especially in the field of hydrocarbons (oil & gas, petrochemical and fertilizers), as well as in power generation and infrastructures. “The downstream,” explains Pierroberto Folgiero, Maire Tecnimont CEO, “is a very lively business, not just in the historical markets such as the Middle East and Russia, but also in the United States and South-East Asia. What is necessary these days is to make less expensive plants, to enhance efficiency and effectiveness, and the only way to do this is to work together with the partners. For decades, the oil and gas industry didn’t step out of its own comfort zone, but today, well, there is no more comfort zone. So only by collaborating differently with your suppliers can you can extract the enormous reserve of value that this sector still has. Then it will be a matter of dividing it between us and the customer.” This is the reason why an event like “Seenergy” has been designed. First of all, in order “to listen to the partners ideas and make them participate in common challenges”, Folgiero specified. Also at the event, was the awards night, “Seenergy 2018 Best Performing Partners”, recognizing the key and top performing suppliers, and featuring keynote speaker, Andrea Guerra, Eataly executive president. In his speech, Mr. Guerra pointed out that “diversity today is a very valuable factor, so one must not create but instead break down walls to overcome the boundaries between societies in order to grow and give life to a new business model.”

Italy and UAE cooperating in the field of

Environmental services

hile leading firms across the industrial spectrum are accepting the challenge of the Circular Economy, with growing investments in forward-thinking technologies and re-designing the production chain, concerns are still high on how to manage the unavoidable bi-products resulting from any urban and industrial process. In re-engineering the former Linear Economy towards a more circular one, members of the society must be proactive in adopting this new model into their daily activities. From changing how we do grocery shopping by choosing to avoid single-use plastic bags in favour of reusable ones, to the ways in which the industrial sector designs consumer’s goods with a more “cradle-to-cradle” mindset. The Circular Economy approach also calls out for a revolution in the ways we look at expertise, where traditional jobs will have to shift towards green jobs, which unsurprisingly have been predicted to come with high-employment rates. A circularity of competences providing global solutions to very local issues, specifically in the field of waste management. In this context a recent business agreement between Italians and Emirates experts in the field of environmental services is a promising example on how cross-borders collaborations could accelerate positive trends in providing sustainable solutions for safely managing urban and industrial waste. The Italian Ambienthesis S.p.A, as one of the main integrated operators in the sector of environmental remediation and industrial waste management, is joining forces with Bee’ah Sharjah Environment Co. LLC, the main operator of waste management in the United Arab Emirates, through the establishment of a Newco. The company called Ambienthesis Middle East DMCC, 100% owned, has been established in Dubai this March.

A renewed firm in the field of environmental remediation & rehabilitation, treatment, recovery and disposal of industrial waste, and environmental engineering activities, Ambienthesis S.p.A will bring to the UAE expertise and know how while leading the development of a sludge purification plant. Ambienthesis S.p.A is a company listed on the MTA market of the Italian Stock Exchange and its part of the Green Holding Group, a well-reputed environmental service firm providing cutting-edge solutions for activities related to treatment, disposal, environmental reclamation and energy valorisation of industrial and civil waste. The creation of the Newco represents the starting point for the subsequent establishment of the operational Joint Venture

The Italian Ambienthesis S.p.A is joining forces with Bee’ah Sharjah Environment Co. LLC, the main operator of waste management in the United Arab Emirates. The Newco established is called Ambienthesis Middle East DMCC Giovanni Bozzetti, president of ambienthesis: we have

years of specific experience

with Bee’ah. With more than 6000 employees Bee’ah is the Middle East’s fastest growing environmental management company. Since 2007 Bee’ah has pushed the boundaries of environmental innovation and crossed remarkable milestones, to become a force for change, across the region. The UAE, being an historical crossroads for trades and innovation between Europe, Africa and Asia, are rapidly propelling towards becoming one of the most important hubs for international exchange in the near future. The Dubai Expo 2020 will host 190 participating countries, and millions of visitors from across the globe. With the announcement of the Newco, the president of Ambientehsis Mr. Giovani Bozzetti commented as follows: “The Middle East DMCC environment represents an element of consolidation of the internationalization strategy that we are pursuing. It will allow us to transfer our value to the local market and to all IMEA countries (India, Middle East, Africa) in terms of know-how gained in 30 years of experience in environmental remediation and industrial waste management”. SEPTEMBER 2019 |

MADE IN ITALY

Savini Milano 1867 welcome to a

milanese institution

ith its 151 years of history, Savini Milano 1867 is a milanese institution like the ”Duomo and La Scala Opera House”. In the heart of Italy’s oldest shopping centre – the opulent Galleria Vittorio Emanuele – the Savini Milano 1867 has long been a favourite with the world-famous singers, performers and composers at the nearby La Scala Opera House. Legendary Italian soprano Maria Callas was a regular, along with composers Verdi, Puccini and Toscanini. In the early 20th century, Savini Milano 1867 was also a favourite meeting place for Milan’s intellectuals, writers and artists, including Italian poet Filippo Tommaso Marinetti – leader and founder of the group known as ‘the Futurists’. Inspired by the huge innovations happening at the time, from motor cars to aviation, the Futurists celebrated modernity, speed and technology and their historic Futurist Manifesto, signed at the restaurant, was published in French newspaper Le Figaro in 1909. Today Savini Milano 1867, divided in Caffè Bistro and Fine Dining Restaurant, is part of Botteghe Storiche di Milano, and the Locali Storici d’Italia, an association comprising the country’s oldest and most prestigious restaurants, hotels and cafés. Original Belle Époque features have been preserved, while many furnishings are original and date back to the 19th century. The cuisine at Savini Milano 1867 reflects the restaurant’s long heritage. The Executive Chef Giovanni Bon skilfully blends innovation and tradition while using modern techniques to prepare great Italian classics. He uses both low-temperature vacuum cooking and braising, a combination-cooking method that uses wet and dry heat. Chef Bon uses a splash of creativity in his dishes with a clear nod 50 | SEPTEMBER 2019

Legendary Italian soprano Maria Callas was a regular, along with composers Verdi, Puccini and Toscanini. In the early 20th century, Savini Milano 1867 was also a favourite meeting place for Milan’s intellectuals, writers and artists, including Italian poet Filippo Tommaso Marinetti

to Milanese culinary traditions. He combines classic recipes with new techniques and ideas, enhancing and bringing out the true flavours of each ingredient. The ground-floor caffè bistro has a more laidback feel, offering customers the chance to enjoy an informal bite, an afternoon tea or an aperitivo in graceful surroundings. The first-floor Sala Toscanini, the famous orchestra leader, is the largest room of Savini, with its four arched windows has unparalleled views over the Galleria. Sebastian Luca Gatto, CEO Savini Milano 1867

Innovation and design, the trademark of Made in Italy A

VE S.p.A. is an Italian leader on the international scene of high quality electric and electronic equipment manufacturers. We believe that innovation is the keyword to dealing with change. To this end, we develop solutions for the electrical systems and home automation sector, combining design and technology to improve lifestyles and to guarantee the highest standards of system reliability and flexibility. Established in 1904, AVE has always been a forerunner in adopting innovative solutions that continuously enhance its range of electrical and home automation products and systems. Design is the strong point of the entire production of AVE, a brand that symbolises the concept of “Made in Italy”, and forms the added value on which the company has built its philosophy. AVE aims for value and quality in its products by keeping its production lines in Italy. Choosing AVE means choosing all-Italian products offering the added prestige of innovative techniques and designs. Our unwavering commitment to constant quality excellence is confirmed by the important quality marks and certifications obtained over time. Before leaving our factory, each item is subjected to strict quality controls. Moreover, we also run a functional control test on 100% of our switches. Our internal

AVE, an Italian leader of high quality electric and electronic equipment manufacturers, combine design and technology to improve lifestyles and to guarantee the highest standards production department turns out electronic SMD cards and deals with electro-mechanical and electronic assembly, both automated and otherwise. This department also shears metal components and uses anthropomorphic robots for injection moulding. We have a cutting-edge tooling department for maintenance and for creating moulds, as well as an efficient quality department where tests are run with optical digital machines and various other advanced testing instruments. AVE switches are covered by a 5-year warranty, another sign of the reliability of its products and the attention paid to its clients. In this way, AVE products are sure to satisfy every need, offering a guarantee of quality, design, safety, functionality and comfort. The great care AVE devotes to manage and control the business process - from design to production, from administration to logistics - awarded us the Quality System Certification CSQ in 1995, according to the strict standards UNI EN ISO 9001.We consider particularly important to guarantee our customers a continuous standard of qualitative excellence, maintained with rigorous effort and testified by an official certificate recognized all over the world. Furthermore since 2003, AVE has the ISO 9001: 2000 (VISION 2000) CERTIFICATION, symbol of the company efforts towards customers’ satisfaction. SEPTEMBER 2019 |

Cova, the taste of luxury

lives in “Montenapo” The historic Milanese pastry shop has just opened a new location at the Dubai Mall, but you can also find them in Hong Kong, Tokyo, Beijing, Shangai, Monte Carlo... by Marina Marinetti

t is said that one day, Mario, the butcher (yes, it is written exactly like that) from the Salumaio of Via Montenapoleone, while accompanying his daughters for a cappuccino at Cova’s, was stopped at the door because his white coat was not really in line with the dress code of the historic Milanese pastry shop. “The next time I set foot in here, I will be the owner”, the man declared on his way out the door. Seeing him upset, one of his clients asked: “Mario, what’s the matter?” Well, the problem was that Mario didn’t have the money to buy Cova. It is said that some time later that same client (Anna Bonomi Bolchini, historic representative of the Milanese entrepreneurial bourgeoisie) opened her purse and gave him two bearer passbooks containing 8 billion Italian lire, without even having him sign a receipt. The good old days. The agreement with the previous owner was reached 52 | SEPTEMBER 2019

after many exhausting nights of negotiations, and was sealed with a handshake. Urban legends? Not so. When asked how many years it took to return all that money to the “Lady Financier”, Mario Faccioli makes the number three with his fingers. In 2013, he sold 80 per cent of the capital to the French luxury giant LVMH, passing the helm of the ship to his “little girls”, Daniela and Paola, who now hold 20 per cent of the capital. From that day in 1989 when Cova was purchased, almost thirty years have passed, which is the same number of Cova locations around the world. Those locations include the newly opened one in Dubai in the new extension of Fashion Avenue with the Dubai Mall. It is elegant and sophisticated like the original in Montenapoleone, 400 square meters in size with a 100 square meter outdoor terrace overlooking the Dubai Fountains, the Opera House and the Burj Khalifa, the highest skyscraper in the world. “The

Two centuries of news

arrival of Cova in Dubai is part of an internationalization strategy that began in 1994 with the opening of the first Cova club in Hong Kong, targeting the most international cities and destinations”, says Paola Faccioli, Ceo of Pasticceria Cova. Under the guidance of Mario Faccioli, stores have also opened in Hong Kong, Tokyo, Nagoya, Shanghai, Beijing, Taipei, and Montecarlo (opened last year in partnership with Flavio Briatore). “But Milan remains one of the favorite and appealing destinations also, and above all, for our Asian customers,” says Paola Faccioli. Next to her, her father, for once without the white coat (which, when one of his daughters was hospitalized for suspected meningitis, allowed him to enter the Hospital outside visiting hours, pretending to be a doctor), shakes his head disconsolately remembering that first ope-

It was the year 1817. Antonio Cova, 23, a Napoleonic officer on leave (and son of two butchers, or salumieri) opened the Caffè del Giardino in a corner building in front of the Scala in Milan. Everyone always called it Offelleria Cova, or simply Cova. In Milan (and beyond, at this point), it has been an institution for two centuries. It has hosted artists, writers, musicians and politicians: Giuseppe Verdi, whose works were performed in the nearby Teatro alla Scala, Giacomo Puccini, Giuseppe Garibaldi and Giuseppe Mazzini. While the Austrian officers gathered in the coffee house rooms, upstairs the Carbonari conspired against them. Luchino Visconti and Maria Callas were regular customers. Ernest Hemingway loved it so much that he mentioned Cova in his novels. Paola and Daniela Faccioli tell Cova’s two hundred year history in the photographic book “Cova”, published by Assouline, with photos by Giovanni Gastel. “In these pages we made room for a story made of Italianness, craftsmanship and passion, shared through the memories, feelings and emotions of those who were part of it,” says the CEO Paola Faccioli. “Thanks to the synergies with the LVMH group, the search for new and exclusive locations abroad will contribute to consolidating our brand’s international development path”.

ning in Hong Kong, “There was not really the coffee culture and they had positioned the machine not on the counter, but higher up, to show it to all the customers. So the barista had to balance on top of three cases of water to make coffee. I hid behind a pillar ... It was hard.” Mario Faccioli defines himself as “one of those who are never happy”. Yet he should thank his lucky stars. Born in 1938 in a farmhouse in Badia Pavese, at the age of twelve he was shuttling between the countryside and Milan. He would travel by bus and a rickety old bicycle to deliver the hams made by his grandfather to a delicatessen in the Porta Venezia neighbourhood. At fifteen, he was behind the delicatessen counter, and then he opened his own location in the Sempione area, until the Travainis hired him as director at the Salumaio di Montenapoleone. SEPTEMBER 2019 |

MADE IN ITALY

From Brianza to 85 countries, always investing at 360 degrees by Sergio Luciano

«T

his is all thanks to our parents, who in the ‘70s decided to entrust us with the company, empowering us with two fundamental principles, or rather qualities- the passion for our work, and the passion for doing things well,» says Giovanni Anzani, CEO at Poliform, a company located in Inverigo, in the heart of Brianza. While Giovanni is no longer a boy he hasn’t forgotten that “imprinting”. Now that his extraordinary entrepreneurial career has been awarded with the Compasso D’Oro, from ADI, the Association for Industrial Design, and with EY’s Entrepreneur of the Year Prize, along with his cousins Alberto and Aldo Spinelli, Giovanni happily recalls that day, fifty years ago, when the reins of the company were handed over to the new generation. A decision that was totally ahead of its time. «Well, it’s true, why deny it? These awards are a 54 | SEPTEMBER 2019

When in 1970, Poliform experienced its first generational change, no one could have foreseen that in a few decades it would become a successful international brand. Interview with CEO Giovanni Anzani great honour. They are not mock prizes, we have gone through a strict selection process among very competitive candidates», he underlines, «EY selected eight companies and two start-ups from among three thousand entries! And so yes, it all started fifty years ago. The passion, I was telling you about, is the basis, but then it must be nurtured by determination, but also by the further passion of doing things well, which is fundamental. In order to do things well, we have always invested at 360 degrees, especially in product innovation, to where we are today, a place where I can’t say that our way of doing things is the benchmark in the world, but close to it. When you are highly appreciated in 85 different countries, well, it is a sign that something compelling has been achieved.» Very convincing, actually. «We went from being a small company with 40 employees to become a major player with 750 employees and over 200 million euro in turnover by 2018,» details Anzani, pointing out that after the 2008 crisis it was essential to internationalize. «After the collapse of the domestic market, actually as a

«Since the beginning we have invested in product innovation at 360 degrees, which has brought us to today where we are appreciated in 85 countries around the world.» result of that, we managed to bring the company to international markets and today we realize 75 percent of our turnover abroad and we are present in 85 countries in the world». Italy represents 25 percent of the total, Europe 35 percent and then there are the Americas, Southeast Asia and the Middle East. «Look, we have never focused on the obvious product», explains Anzani, «On the contrary, we have always tried to propose a distinctive way of conceiving lifestyle and interior design. Then we have combined these elements with a trustworthy brand that communicates our commitment to creating products focused on elegance.» «With this concept, we achieved our international expansion. First in Europe, starting with Germany and then moving on to Switzerland, the UK, Holland and France. Then, finally, when we reached Russia and realized that our expansion into Europe was complete, we decided to open to the United States. That was twenty years ago,» recalls Anzani. «We started out right from New York and then we expanded to Chicago, Miami, Los Angeles and other cities in North and Central America. Ten years ago, Poliform USA was 100 percent incorporated, with excellent results.» What was left of the international markets at that point? Easy answer – China. «And in fact, we went to China,» continues Anzani in his story. «In six or seven years we opened a number of single-brand stores which have given us a lot of satisfaction. In Pudong, Shanghai, we opened a 1000-square meter store in the Gala Mall. In the next few days, we’ll open another one in Shenzen.» Indeed, this is the most recent example of the extraordinary phase of development and growth that this megalopolis is going through. The inauguration will take place by April and the store will be 1200 square meters in size. However, its real uniqueness is that it is located inside the new Design Society Museum, a permanent lifestyle exhibition, a bit like the MOMA in New York which is also connected to the Victoria and Albert Museum in London, or VAM, as some call it. The single-brand strategy accompanies Poliform throughout the world, «We have nine Poliform stores in nine cities, and we will reach 13 or 14 by June or July. All these shops,» notes Anzani, «have a similar layout and equal footage, between 500 and 1000 square meters. Looking from the single-brand store perspective, we are pleased to observe that our product is

Giovanni Anzani with Alberto and Aldo Spinelli

very popular everywhere, probably among the most popular in the modern genre, and I could say perhaps the most desired.» In the Poliform organization, stores are partner companies, while sales and logistics are based in Inverigo. In other words, the guidelines come from Italy, but then it’s up to the territory and their local specialists to face the challenge of the different markets. But that’s not enough. Poliform wanted to assess its vision exploring a new sector – “Made in Italy” upholstered furniture. The Inverigo company added this new business line just ten years ago, which completed the brand lifestyle system that already included the living area, bedroom and kitchen (at the time controlled by the Varenna brand, now back under the Poliform umbrella). The success was such that it required huge investment. It became necessary to build a 20,000-square-meter production facility in order to support what now represents a third of the business. Within this year, all production will be transferred to the new location. «We are planning to recruit more talent for the new facility. At a production level, Poliform can count on five factories, all located in Brianza and divided among the various specializations. On top of that, there is the Poliform Lab, which is focused on research, development and communication activities. We are accelerating hard also on digitization, which represents an extra channel, making us the flag bearer of Italian design in the world». In a word, Poliform. SEPTEMBER 2019 |

LIFE style 71

LIFESTYLE

Welcome to the unique

Amalfi Coast

Not far from Naples, bays, coves, overhangs and villages like pearls sheer to the sea. Travelling in the enchantment of the “Divine Coast”, elected as a World Heritage Site by UNESCO

58 | SEPTEMBER 2019

TRIP TO THE NAPLES REGION

SEPTEMBER 2019 |

LIFESTYLE

n intertwining of artistic wonders, lush vegetation and ancient villages, able to captivate travellers of all types. An uninterrupted set of sleepy and fairy-tale towns overlooking the sea that causes vertigo. A naturalistic reservoir of unsurpassed charm to be shared with loved ones and friends, raising glasses of special wine and enjoying food shaped by a generous sun and the Mediterranean Sea breeze, warming heart and palate. UNESCO has elected the Amalfi Coast as a World Heritage Site. A choice that you understand at the first glimpse, as soon as you land or disembark from a boat on the spectacular strip that connects Positano to Vietri sul Mare. Maritime jewelry Pick randomly in this band of 40 kilometres and 13 municipalities, and wherever you end up, youâ&#x20AC;&#x2122;ll end up pretty well. In the maze of narrow alleys of Amalfi, the fulcrum of the oldest Maritime Republic of Italy, one can, for example, walk for hours, leaving behind the remarkable thirteenth-century Arab-Sicilian Cathedral, home to another fairy-tale, Chiostro del Paradiso. 60 | SEPTEMBER 2019

TRIP TO THE NAPLES REGION

The Amalfi Coast has been selected by UNESCO as a World Heritage site. A choice that you understand at the first glimpse, as soon as you land or disembark from a boat on the spectacular strip that connects Positano to Vietri The stairway that connects upper Positano to the beach, overlooking the islets of Li Galli, has fueled the creativity of generations of poets and artists. The view from the “terrace of the infinite” of Villa Cimbrone in Ravello is also almost mythological, a spot that the American writer Gore Vidal was not afraid to call “the most beautiful place in the world”. And then there are the rocky architectural conformations in Atrani, the gulf, the terraces and gardens in Maiori, the villas, the towers and the caves in the peaceful Minori, the rare tranquillity of the most neglected Furore. In addition there are the different architectural features of Tramonti, Praiano, Conca de ’Marini, Cetara. Not to mention the Amalfi Coast’s wild hinterland, where lovers of silence (and fresh air) will happily go.

In the previous pages, a splendid view of Positano. In this pages, villages and glimpses of the sea of the

Divine Coast, 40 kilometres long.

ted throughout the world for their artistic style, the result of a tradition refined over the centuries. Bucolic subjects are still painted thanks to the owlish movement of the lathe and the accurate and inventive brush strokes - the boats, the fishermen, the women going to the fountain, the moon, the sun, the donkey. Then there is the handmade paper, another significant artisan banner of the district - the processes of cleaning rags, patching or drying that animated the paper mills in the past are still well reproduced in the Museum of the Paper of Amalfi (museodellacarta.it) which it is worthwhile to visit, like the Vietri Ceramics Museum.

From ceramics to paper In the colourful boutiques of Positano or in the Amalfi shops, the Divine Coast also offers endless shopping opportunities. There is also the handmade ceramics of Vietri Sul Mar, which in addition to representing the cornerstones of the local economy, vases, plates, jars, mugs and tiles, are also recognized and appreciaSEPTEMBER 2019 |

LIFESTYLE

Craftsmanship on a world scale,

an all-Italian specialty by Riccardo Venturi

Applying high-level technological solutions - this is how Getra managed to grow, despite the crisis. Becoming a leader in energy transport, transmission and distribution systems, on a global level

igh-tech Italian industrial craftsmanship is unrivalled in the world. This is why Getra, a Campanian group leader in Italy and among the most important companies in Europe in the energy transport, transmission and distribution systems sector, has grown even in years of turmoil, and continues to expand in the international markets. “Our high-power transformers for power plants cannot be standardized,” explains Ludovica Zigon, commercial director at Getra group and daughter of President Marco, “we make them according to our customers’ specifications, and we can provide 10-15 years warranty on these strategic products. On top of that, in our territory, there are super-skilled technicians, which is another reason we have not delocalized.” Getra transformers, systems and components have the task of bringing electricity from large power plants, or from renewable energy plants, to transmission and distribution grids. This function is strongly connected to energy efficiency - the objective is to transmit and distribute electrical energy to end users with the minimum dispersion. To continue to grow in times of crisis, Getra has based its activity on three pillars. “The first is the pursuit of technological excellence,” observes Zigon, “we are focused on products’ quality and efficiency and there’s a consensus that our products stand at the highest standards. Between 2015 and 2016 we invested over 30 million in our Marcianise and Pignataro plants. This allows us to compete on equal terms with the large multinationals in the sector, alongside Siemens, ABB and General Electric.” The second pillar is closely linked to the first, indeed it is its foundation, “We constantly invest in research and innovation,” underlines the commercial director of the Getra group, “to which we dedicate 20 percent of the workforce. The European directives on decarbonization require very low levels of energy dispersion, and if you want to reach the goal of 32 percent of renewable energy by 2030, you have to work on networks efficiency, to create a smart grid, and on accumulation systems, to keep the pace with a growing production.” Getra’s R&D effort is therefore focused above all on the development and adoption of innovative materials and technologies for saving energy. Last but not least, the third pillar, “Internationaliza62 | SEPTEMBER 2019

From naples region to the whole wolrd: 80% of getra’s turnover comes from abroad.

tion, 80 percent of our turnover comes from abroad,” Zigon points out, “the fact that domestic demand has been declining in recent years has been a boost in this direction. And now that we are talking about a possible new recession, we want to continue investing in our territory and pushing towards foreign markets.” The main export areas for Getra are the United Kingdom and Northern Europe, the Middle East, South America and North Africa, “The latter has been shrinking due to political instability, that makes hard to pursue a long-term structured business,” specifies the commercial director, “but also due to Asian competition, which brings important investments especially in our sector, and more generally in all infrastructures.” The same synergistic public-private approach, for example, exists also in Germany, but not in Italy.

TRIP TO THE NAPLES REGION

Close to the temples of Paestum

a forge of innovative Smes I

n recent years, thanks to the emerging phenomenon of startups and to the development of alternative financial channels, a digital innovation culture has spread among Italian SMEs, with a focus on web marketing and new technologies. National events, aiming to enhance and reward innovative companies, products or processes, have multiplied. Among these, the Best Practices Award for Innovation, organized by Confindustria Salerno, the town near the temples of Paestum, and led in recent years by Edoardo Gisolfi, partner of the Stratego Group, over the last 12-years, has hosted over 1200 participants from all over Italy, creating a constant dialogue involving all ecosystem actors, alongside start-ups, established companies, banks, investors, incubators and accelerators. The companies, finally operating in an open economic environment, have put this change of perspective in place, investing more in R&D in their marketing plan, and working actively for patenting their innovations. This vision has been reported not just in the sector’s media, but also in national and local media. Cti FoodTech, awarded at the 12th edition of the Best Practices Award for Innovation by Confindustria Salerno, over the years has developed a distinctive ability to innovate and communicate to the market. It’s the second pitting machines producer in the world, in terms of number of units installed, with more than seven billion pieces of fruit processed and an extensive commercial presence over all international markets. From Salerno, Cti FoodTech has become the world leader in the production of fruit processing machines. Thanks to its steady investments in research and development, the company has obtained 100 patents in 20 countries, a record for a SME from the south of Italy. The founder, Biagio Crescenzo, who has a degree in engineering, strongly believes that in a volatile market subject to geopolitical

Among them Cti Food Tech, world leader in the production of fruit processing machines, awarded at the Best Practices Award for Innovation by Confindustria Salerno, that over the last 12-years has hosted over 1200 participants from Italy

Cti FoodTech, Salerno, has obtained 100 patents in 20 from

countries

changes, innovation and internationalization are the key growth-factors for his company. Born and raised in Salerno, Crescenzo has put innovation and communication a top priority for him, first as an engineer, and then as an entrepreneur. On this ground, he developed a cutting-edge marketing plan. Cti Foodtech has introduced market technologies such as automatic orientation, optical scan and automatic handling, carried out in partnership with the largest world players in industrial automation. Its machines are manufactured in a 4.0 plant. Communicating these elements in an engaging way has been a key driver in the company’s success story, taking Cti Foodtech to the next level by conquering market shares on a global scale, from Spain to China, from Greece to South Africa, starting from Italy. Getting patents, as well as launching a new machine or attending to an international fair, are all pieces of content that Cti Foodtech feeds to mainstream - newspapers, TV, radio, Italian and foreign web portals - and social media. The focus on the company’s overall image, including logo and other communication tools (brochure, video presentation, etc.), contributed to the success of the company’s participation in Cancon 2018, the international conference aimed at companies in the fruit processing sector, which this year was held in Murcia, in Spain. “How can I explain my success? We always start by analyzing market needs. Where we see something unfulfilled, we go in with an innovation and we communicate it”, the winning recipe of the entrepreneur, actually inventor, from Salerno.

SEPTEMBER 2019 |

LIFESTYLE

The stars are many but the gains

are for few

ooking shows, talk shows, advertising. Then a rock starlike following, with delirious fans who have even begun using the most famous expressions from their favourite chefs. This is not about a new online phenomenon. We are talking about Michelin-star awarded chefs, the career that has taken the place of bank employee in the dreams of all Italian mothers, who wish a brighter future for their children. With the likes of Barbieri, Bottura, Cannavacciuolo and Cracco (in strict alphabetical order) individually producing corporation-size earnings, the belief that owing a restaurant (preferably award-winning) is the key to achieving great economic and personal success is growing. But is it really so? The short answer, not really. According to a study carried out by Massimo Feruzziâ&#x20AC;&#x2122;s JFC, the average annual income of Italyâ&#x20AC;&#x2122;s 356 64 | SEPTEMBER 2019

Grueling work shifts, low margins, high staffing costs: thanks to the dozens of television programs that show nothing but the glitz and glam, becoming a chef has become the Italian dream. Really? by Marco Scotti

restaurants with at least one Michelin-star is 775,000 euro, coming from 6,318 customers. The average bill ranges from 112 euro for a one Michelin-star establishment to 178 for a two-star and 250 euro for a three-star. Clearly, with few exceptions, these are not particularly impressive numbers. Setting up a kitchen can cost up to 300,000 euro, while the average yearly staff cost is 40,000 euro per person. If we consider that, on average, a dozen people work in a Michelin-star restaurant, the calculations are pretty straightforward. On top of that, suppliers, bills and rent have to be paid. All are expenditures that drastically reduce a chef ’s margins. “Most of the stars-awarded restaurants” - says Valerio Visintin, the Corriere della Sera’s ‘mystery critic’ – “can sustain their business thanks to side activities like events, cooking shows, TV appearances. Then there’s additional ‘under the table’ revenue that comes from the sponsored ingredients in the menu. In terms of taste, what is the point in telling which brand of pasta was used? The truth is that the menus are becoming more and more like the formula one drivers suits.” In fact, according to the JFC study, the collateral out-of-the-restaurant activities are becoming increasingly important for chefs. The big names can participate in about forty events of varying types per year, for which they receive a cachet ranging from 4,500 to 32,000 euro. And it is not difficult to do the math. In short, it’s a two-sided world in which those who are at the top of the pyramid earn very well, while the others, despite prestigious awards, struggle to reach significant turnover. “Many restaurants,” - adds Visintin - “take more interns than they are legally supposed to and make agreements with cooking schools to have a non-stop labour supply. The thing is that the sponsors for restaurants, cooking schools and events always the same brands. This system is so well-established that nobody gets shocked anymore and is accepted without any outcry.” The cost issues and the need to find “collateral” activities outside the mere restaurant business is echoed by Francesco Patti and

Culinary Critic Valerio Visintin, right. Chefs Francesco Patti and Domenico Colonnetta, below.

Here in Sicily it is hard to make people understand why we charge certain prices. Most look at us like we are aliens

Most stars-awarded restaurants are kept alive due to TV and cooking programs Domenico Colonnetta, young star-awarded chefs at the Coria restaurant in Caltagirone. “Here in our region,” they tell us, “it is very hard to make Sicilian customers, who are accustomed to big portions and low prices, understand that we are not a ‘jeweler’. Instead, when we opened the business, we were looked at like aliens. Our 2012 Michelin star allowed us to expand our clientele, but it remains difficult to be profitable. Let’s say that with 28-36 seats and 10 staff members we are balanced. Catering is different, because it has allowed us to expand our business network and our turnover. With our catering company we employ 70 people and we are starting to work with large clients, like Google. Consider, for example, that according to the social media rumors we catered the Fedez and Chiara Ferragni wedding in Noto, which was one of the most talked-about events in recent years. Now even though we were not the actual suppliers, we benefited from the indirect advertising precisely because our catering business has started to build and grow our reputation.” The relationship with the region is critical: on the one hand, the presence of a star-awarded chef allows small local producers to emerge. “Tourism, agriculture and restaurants walk together hand-in-hand” explains Accursio Craparo, chef of the star-awarded self-named restaurant in Modica, “and that’s good. The focus and care for both, traditional and high-end products, creates a growth opportunity for small local SEPTEMBER 2019 |

LIFESTYLE

chef

producers who would otherwise be crushed by large-scale distribution.” Moreover, the star-awarded restaurants create a positive impact for their operations’ territory ranging from 256 to 612 euros per tourist, depending on whether they are Italian or foreign. But there are also challenges: for example, especially in the south of Italy, it’s hard to understand why a restaurant should have a meal price significantly higher the average cost in those areas. Vincenzo Candiano, a two-Michelin-star chef at Locanda Don Serafino in Ragusa Ibla, shares the same view. “People” - he explains – “are surprised that I sell a risotto for 65 euro per dish, when I have to take into account about 30 euro for the very cost of the raw materials. The margins are slim, even if people insist on believing that we live in wealth. Popular cooking shows contribute to creating an audience slightly more aware of what they eat - and therefore also more aware of the manufacturing costs. While in the past they looked exclusively at the final price on the menu. But expenses for running a star-awarded restaurant are very high, just consider that our cellar has about 20,000 bottles with 1,700 different labels.” Food enthusiasts’ choices should always be based on food and wine guides. But even in this case the model is starting to wobble. The latest issues of “Guida de L’Espresso”, for example, have highlighted a kind of perverse mechanism in which the inspectors sent in search of the best restaurants in Italy, actually have very little discretion. A printing error, in fact, showed a message 66 | SEPTEMBER 2019

Accursio Craparo

The focus on capitalizing on the best regional culinary products also helps the little guys. In fact, award-winning restaurants produce a positive economic impact in the region

Star-rewarded restaurants, the numbers 356

Restaurants with at least one Michelin-star in Italy

775.000

The average turnover of a star-awarded business

112 EUROS

The average single meal cost in a star-awarded restaurant

178 EUROS

The average single meal cost in a two Michelin-star restaurant

250 EUROS

The price for a three-star meal

6.318

Customers in 2017

400 MILLION EUROS

The turnover of star-awarded restaurants

17,000

The restaurants listed in the Michelin guide

2,000

Star-awarded restaurants in Europe

addressed by a restaurant reviewer to the guide’s publishing editor, Enzo Vizzari, in which it was argued that the establishment was not worthy of any recognition. But the Guide’s chief decided otherwise, giving a “two hats” mark. “These errors,” Visintin tells us, “increase the risk that people suspect some kind of constant interference. In fact, the massive advertising presence justifies this suspicion. On the other hand, if a guide that sells just a few thousand copies still must review all those restaurants, it is natural that sponsors should intervene to support the guide with advertising investments.” The guides themselves have become one of the most controversial tools in this high-end food and wine booming era. Compared to last year, the turnover of star-awarded restaurants has increased by over 10 per cent, breaking through the 400 million euro mark. But how are restaurants reviewed for the world’s most important guide, the Michelin Guide? “Italy is second in Europe for number of star-awarded restaurants” explains Visintin “after France which, for obvious reasons, is the most present. What is baffling is how the reviews are conducted. 80 inspectors have a permanent job that requires them to visit restaurants in 12 European countries outside their country of origin to avoid possible conflict of interests. There’s around 17,000 restaurants to be reviewed, but those that deserve the star or have to confirm the one that they already have, will receive three visits in total. There are around 2,000 star-awarded restaurants, so another 4,000 stops must be added. Moreover, it is not always a first hit and, to be conservative, it is safe to assume that at least 20 per cent of visits to restaurants do not turn into stars

Over 17,000 restaurants in Europe undergo the reviewing process put in place by eighty Michelin Guide’s Inspectors. The star-awarding mechanisms are at times mysterious, with much discrepancy between locations

Vincenzo Candiano, and recommendations. We arrive at over 25,000 restaurants to be Michelin 2-star Chef reviewed, which means, on average, almost 330 meals for each inspector, each year. A little too much, perhaps.” from the Locanda Don Serafino “The star-rewarding mechanisms” concludes chef Candiano, “are restaurant in really bizarre. We are required to have the highest quality and hyRagusa, Ibla giene standards. While instead in other areas of the world judges are ok with situations where there’s by far less care. This disparity, however, in my opinion is not particularly justifiable.” Finally, two more words on the ‘weight’ of the stars. According to the JFC survey, getting this award is worth a 50 per cent turnover increase in the case of one star, 18.7 per cent in the case of two stars and 25.6 per cent for a 3-star restaurant. But in two and three Michelin star-awarded restaurants, the expenses for accessories, personnel, wine cellar and other costs are so significant that restaurant owners might even prefer not to be ‘upgraded’. “In our small way” Coria’s chefs joke, “we hope not to be awarded with any more stars, it would be an incredible cost!”

SEPTEMBER 2019 |

LIFESTYLE

Alfa Romeo 6 C freccia d’oro

The King Midas of the vintage car and the forbidden dream

of super VIPs

by Laura Lamarra

Corrado Lopresto, considered the most famous world collector, reveals the secrets of the most exclusive auctions, including the Ferrari 290 MM sold for 22 million euro and the 500 exhibited at the Moma

ans of the genre, collectors, and those who can afford it, have invested in recent years in classic cars, which have become a safe haven asset on which to rely during times of market turmoil. The vintage car market has grown by 111 percent over a 5 year period, from 2011 to 2016, approximately 20 percent per annum, and has become more similar to the market of high-value artwork, often featuring staggering prices. An example of this is the Sotheby’s auction, held in November 2016 at the Milan Fair, with a catalog of over 800 models, where alongside by far less valuable cars priced at absurd figures, a Ferrari 275 GTB / 6C Alloy, an aluminum bodywork rarity, was sold for over 3 million euro. After the surge in the past, the classic car market seems to be settling towards an adequate recognition of the real value of the single car. It is a trend that shows a better appreciation of authenticity. But what is the value of these four-wheeled pieces of art? «The sentimental value of these relics is immeasurable,» says Corrado Lopresto, Milanese architect and entrepreneur, considered the 68 | SEPTEMBER 2019

most famous collector of Italian vintage cars in the world. “My personal emotional attachment to these objects, continues Lopresto, comes from the desire to valorize rigorously Italian, surprisingly unique, pieces, often not even recognized as such and left in indifference. For my entire life I searched and collected, when no one else was even thinking about it. I was looking for “oddities”, things that were of no interest to anyone, cars that were different from the others, with a little-known history. I love capitalising on, and bringing fame to cars that often did not even have it in the past. It is a challenge primarily with myself.” It must be a fascinating journey to recognize and rediscover some never-seen-before cars, such as the Alfa Romeo 6C 1750, rebodied by Aprile Di Savona, an unknown but highly talented craftsman. «The expertise in collecting cars and the great knowledge that I gained over the years have allowed me,» continues Lopresto, «to qualify as a talent scout in the industry. However, my collection also includes known

Corrado Lopresto, Milan architect and entrepreneur, is the world’s most famous collector of Italian vintage cars

pieces such as the Lancia Florida, the Giulietta SZ Coda Tronca, the first Isotta Fraschini, and the oldest Lancia in the world. Alongside projects rejected by manufacturers or forgotten prototypes, there are also very important milestones in Italian design and automotive industry. All my cars have a story to tell and they are unique examples, custom-built or somehow special.» Just in Italy there are about 4 million “historic cars”, namely older than 30 years according to the new Highway Code, while until 2016 they had to be older than 20 years. Most of them are under the 10 thousand euro value. What are the parameters that certify the preciousness of these pieces of art, which have moved from being a mere hobby to being a safe long-term investment? «The brand, the model, the year of manufacturing, the chassis number, the state of preservation, the accuracy of the restoration, the comprehensiveness of the documents are just some drivers. For some years now, another theme of my Collection,» says Lopresto, «has been the search for the “number one” vehicle identification number, including mass market models, which are unique in terms of charm and historical importance». For many people the purchase of a vintage car is an impulse buy, dictated not so much by an emotional attachment and/or an economic evaluation, as much as by vanity and the satisfaction of being the owner of an exclusive object. An object coveted by the community, able to rekindle past emotions and memories, with its styles and customs. Market downturns, typical of a sector that has always been characterized by discontinuous trends, shouldn’t worry investors too much. The value of an exclusive piece is always growing. Thus, in spite of the decline in the last period, classic cars continue to attract people’s interest. Alongside the speculative aims, there are fortunately many initiatives targeting the recovery of the cultural heritage they represent. Some car manufacturers have created departments dedicated to the restoration of these classics. Among them, the Ferrari Classiche Department and the Lamborghini Historical Center. «Restoration,» continues Lopresto, «is an art, it requires passion, in-depth study, long and demanding research and careful execution to reconstruct the era and the life of each individual car, bringing it back to its original condition and respecting its story as much as possible.» Lopresto acquired this exceptional attention to detail at a young age. By 18, he was already focused on the preservation of a car’s original condition with the objective of a philological restoration to artwork. He learned the trade tricks “hands on” also thanks to the invaluable help of the Giordano brothers, elderly restorers in Reggio Calabria. «My passion was born from within my family, but also hampered by my father, who was willing to support me only for ‘serious things’ such as studies, cultural trips and sporting

activities, but not for cars. I grew up, in the south of Calabria, among old cars that remained in the cellar as unsold family goods. I used to come back home every evening, after my studies and after the workshop, still with the smell of gasoline on me that did not go away.» It is not easy to acquire competence in the sector.«At the beginning, it was hard. I read the only available specialist magazine, La Manovella, but I found, with its magnificent library dedicated to cars, the Museum of Turin to be a great source of inspiration. That’s how I developed my absolute passion for attention to detail, which I consider essential.» «There is no set of rules for excellent restoration,» continues Lopresto, «everything is the result of observation, study, research and experience. It is necessary to respect the style of the car’s designer, study the historical context, recover the colors and materials of the time and remain faithful to it. Many want to interpret and improve, there is nothing more wrong in my opinion.» Why focus on Made in Italy? «I bought my first car as collector in the ‘80s, a Fiat Balilla that I still love fondly, a very particular model, which I could afford, and as usual, found by chance. I immediately wrote to the manufacturer to learn more about the uniqueness of its frame. The second car was a FIAT 1100 with jump seat, long body shell and reclining bucket seats. All Italian concepts that led me to develop curiosity, passion and expertise for specific strictly Made in Italy car models. Never forget your own origins.» Keeping iconic mo-

SEPTEMBER 2019 |

LIFESTYLE

dels away from the public and strictly for personal enjoyment would be sacrilegious. Thus the numerous competitions and events organized around the world have become a glamorous stage for these classics, creating opportunities for sharing and debating, for collectors and enthusiasts alike. «By pure chance,» Lopresto continues, «I came to the first Elegance Competition in 2001 at Villa d’Este, the most important of its kind in Europe. My car, the Alfa 2500 Cabriolet Touring, being under repair, was noticed by Mr. Droulers, one of the judges, and from that moment I started working hard to prepare it in the best possible way. After the extraordinary victory, I selected the next events to participate in almost by inertia. Especially abroad, distinctive Italian cars are highly discoursed and extremely desired.» Over 200 awards in 15 years, including in 2015, the milestone of the 50 “Best in Show”. Among the most significant, there are five awards from Pebble Beach, considered the most important competition in the world, seven “Best in Show” from Spa-Francorchamps, six from Baden Baden, three from Ludwigsburg and Florence and as many as four Golden Cups from Villa d’Este, a record still unmatched by any other collector. «I enjoy these awards with pride and gratification,» declares Lopresto, «as proof of the validity of the painstaking research work that I carry out to guarantee the preservation of the original characteristic of a car.» With that philosophy being at the center of your work, you were awarded by the Fédération International des Véhicules Anciens (FIVA), with the patronage of UNESCO, at the 2016 Villa d’Este competition, for the Alfa Romeo SZ Coda Tronca prototype, an exceptional example of conservative restoration. «All my cars undergo extensive research, thanks to the 70 | SEPTEMBER 2019

Above, The iconic Alfa Romeo 6C 2500. BELOW,the Ferrari 275 GTB Alloy, one of the finest examples ever sold by

Sotheby’s

rich archive of documents that I have collected over the years, field research and help from the major sector experts.» In 90 percent of cases, you find your “Ugly ducklings” cars in very poor conditions, but you’ve always been able to recognize their beauty right away, transforming and restoring them into masterpieces. «The uniqueness of the cars in my Collection requires dedicated studies, since it’s not possible to refer to a standard model», continues Lopresto, «and restoration is always the compromise between bringing the car back to its original appearance versus focusing on total preservation, including any “historical” modifications. Through processes, which are, in some cases, absolutely new, cars in the Collection have been restored with a totally conservative approach, without the replacement of a single part. This is the case, for example, of the Alfa Romeo Giulietta SZ Coda Tronca prototype and of the 1900 SS Zagato.» Cars that talk about history, design, customs and traditions of an era, values to share and pass on. «We have a duty to capitalise on and not waste this cultural richness,» says Lopresto. «I don’t keep cars just for myself. They are exhibited in competitions, in numerous exhibitions and events dedicated to Italian design, at the Turin Automobile Museum or in other prestigious locations such as the Monza Autodrome or Piazza della Signoria in Florence. I took my cars also abroad, to vintage fairs held in Stuttgart (2010) and Paris (2015), including my Isotta Fraschini 8A SS, in what is considered the “Louvre” of vintage cars, the Schlumpf Collection in Mulhouse. My cars are also always entered in national and international regularity races and competitions, such as Mille Miglia, GP Nuvolari, Giro di Sicilia, Targa Florio, Bergamo Historic GP, Vernasca Silver Flag.» Much could be done to effectively promote the sector. «As collectors, all together,» Lopresto continues, «we should team up and make politicians understand the enormous intrinsic value of these cars. They represent an asset that should be respected and preserved, a sector that should be supported and empowered because it creates opportunities for collateral businesses, instead of being restrained by increasingly restrictive circulation bans. The vintage car is also a great career opportunity for young people, attracted by this mix of engines and design that speaks of history.» The vintage car is a culture to be preserved: «There is a growing desire to rediscover the origins of car manufacturing, in order to understand our history and anticipate future trends. Italy’s automotive heritage is an economic and value-driven wealth, a reflection of the past, on which everyone should be committed. The vintage car has an intrinsic and symbolic value, embodying the history, culture and beauty of our country. They are not just cars, they are also fascinating sculptures for privileged people, artwork that is a forerunner of customs and habits from everyday life».

Volatile markets? Don’t panic, you can always consider

“passion assets”

by Vincenzo Petraglia

n times when stock markets are once again volatile, so-called alternative investments are increasingly popular, even if they are not without risks. This is why it is essential to make wise and informed choices. But what are the current trends and which are the most promising assets? Passion assets definitely play an important role, especially collectibles. Overall good deals are up for grabs with artwork, since quality and rarity are generally rewarded by the market. The spending level to enter the art market can obviously be high, in the case of well-established artists, or lower for the emerging ones, for whom there is a greater risk of investing without making a profit in the short term. If you want to invest in artwork, in fact, you must be ready to wait, in many cases, at least a decade to obtain returns of a certain size, sometimes even higher than 200 percent. We talk about it with field expert, Alex Ricchebuono, who for over twenty years, has been working in Asset Management and has a deep understanding of the art market. Rai 5, the Italian TV station, broadcasted Money Art, the documentary profiling Alex Ricchebuono, who in it, reveals the art market’s opportunities and risks. With stock markets so volatile, which are the fastest growing investment sectors? In recent months, market volatility has returned in a way we haven’t seen for some time. Almost all traditional asset classes have been impacted, challenging the patience of many investors. In some cases, fear and uncertainty about the future has begun to spread again, which has led to a growing demand for alter-

Deloitte reports that the value invested in art and collectibles by private bank customers will exceed 2,700 billion dollars by 2026 native investments. The real estate sector, historically preferred by Italians, has lately been unstable, causing the disaffection by many. Alternative investments have therefore become increasingly popular. On one hand, we have those that give long-term access to the real economy, such as private equity and venture capital funds, on the other hand there are tangible assets with an intrinsic value, like collectibles. We are talking about precious objects that have become more and more an opportunity for wealthy customers. According to some reports, in fact, one investor in six has decided to focus

on this sector to protect and diversify their own assets. The lion’s share is made by modern art collectors who recorded a turnover of tens of billions of euro at a global level, especially in countries like the United States and China. But there are many other growing sectors that are increasingly attracting investors in the five continents.It is true however, that ten years after Lehman’s bankruptcy and the unconventional interventions of all the central banks worldwide, uncertainty has increased and no sector is immune to risks, including the ones with high emotional value, as Nobel Prize winners Daniel Kahneman and RiSEPTEMBER 2019 |

LIFESTYLE

Alex Ricchebuono, long-time asset management and passion assets expert

Opposite, the Salvator Mundi, Leonardo Da Vinci

attributed to

chard Thaler explained. That said, it must be emphasized that passion assets are usually a medium-long term investment and are less involved in panic selling situations. What are the passion assets dynamics compared to traditional assets? The so-called passion investments encompass different types of assets, including historic cars, fine wines, jewels, fine watches, artworks, antique and designer furniture, as well as photographs and historical collectables, like coins and stamps. The purchase of collectable goods is mainly triggered by emotional factors alongside the quest for social status symbols. Especially in developing countries or where new elite millionaires are emerging, like China and India, having the works of certain artists in your home is a way to feel included in a certain restricted privileged circle. However, even the financial factor is becoming increasingly important, making the collector an ideal client for private banking services companies. Most of the time, these people are not greedy speculators, but individuals who accumulate value in assets that emotionally involve them and at the same time can protect and increase their net worth. This leads to an increasing demand for professional services focused on the management and protection of value invested in such a variegated sector. A large majority of collectors, therefore, buy mainly to satisfy a passion, but also increasingly have an investment vision and the aim of diversifying their portfolio to protect it from sudden market shocks. The emotional aspect of collecting, combined with the potential increase and protection of value, are therefore the driving forces for most collectors.

As for the other passion assets, historic cars and fine watches represent segments that, for the moment, are recession-proof. The former because of their rarity and beauty, the latter because of the ease of transport and trade and also because they can be used and worn every day.

What are the latest trends in the field of collectibles? The artwork and collectibles market today requires increasingly precise and sophisticated analysis and management tools, able to counteract the lack of uniform standards and regulations. This is even truer in our country, which is literally a gold mine of precious and ancient objects which, however, less and less meet the appreciation of international collectors, historically influenced by a more contemporary taste. There is a growing disconnection between the generations of new collectors, coming from diverse geographical and cultural backgrounds, and the classical world of ancient art. Over the last few years the ‘Old Masters’ sector has actually been the most enigmatic and selective segment. Despite the very high average rate of unsold inventory, due to a large number of artwork pieces in the auction catalogs that failed to attract buyers’ interest, it is nevertheless true that the market has recently recovered from previous periods. The most relevant aspect was the extent of above-expectations auction results, often conveyed by the presence of desired and highly appreciated works. This, however, cannot make us forget that the contemporary art segment had and keeps having the greatest share of the art collecting sector, with the inception of new artists and new trends that quickly met the collectors’ tastes.

How has this market changed in recent years? What was originally a hobby for wealthy and eccentric philanthropists in search of excitement and distraction, has increasingly become a professional activity, managed with high-level principles and skills. The art and collectibles market now attracts an increasing number of enthusiasts and collectors, sector operators and investors who wish to diversify their portfolio. This has created a number of specific professional profiles to support customers interested in this multi-faceted world. The competition in the asset management sector has grown accordingly, increasing the supply of management services aimed at a relatively limited number of very wealthy individuals and families. Part of this set of services are, among others, artwork management and maintenance alongside the collectibles sales support. That means that a 360-degree approach to customer asset management is needed because otherwise the customers themselves would turn elsewhere, making the risk of losing significant assets under management a reality. The Deloitte division that looks after this sector estimates that the value invested in art and collectibles by private banking customers will reach over 2,700 billion dollars by 2026. This is a gigantic figure, almost two times the current value, which confirms the need to develop ad hoc

72 | SEPTEMBER 2019

One in six investors are committing to collectibles as a way to diversify and protect their net worth

The cover of finance fiction book authored by Ricchebuono, featuring the aftermath of the 2008 recession as seen through the eyes of a former banker

services for an expanding clientele with a vision, at the same time, increasingly global and decreasingly local. The interesting thing is that collectible assets, satisfying emotional and status symbols needs, are less subject to panic selling than other traditional financial investments. What are the most dynamic segments in the art and collectibles market? The art and collectibles market over the last 18 months has proved to be more lively and proactive than in 2016, although recently there has been a slowdown also influenced by factors of uncertainty, like Brexit, and by increased market volatility. This validated a general caution in purchases and a growing selectivity by collectors. A better global economic situation and a reduction in financial market volatility will certainly help to calm the climate by bringing the trend back on track for long-term growth. Having said this, the liveliest sectors were, as mentioned, post-war modern and contemporary art (see chart). Whereas the most dynamic collectibles segments were fine wines, historic cars and fine watches. Over the past few years, several records have been broken... In 2017 the U.S. market confirmed its leadership in the painting segment auctions, reviving the 2014-2015 two-year period boost. New York’s auctions, in particular, were able to attract the most Top 10 of the works auctioned at Sotheby’s and Christie’s in 2018 Artist

Work of art

Hammer price Auction house Auction date

1 Amedeo Modigliani 1917

Nu couché (sur le côté gauche)

157.159.000

Sotheby’s New York

May 14th

2 Pablo Picasso 1905

Fillette à la corbeille fleurie

115.000.000

Christie’s New York

May 8th

3 Edward Hopper 1929

Chop Suey

91.875.000

Christie’s New York

November 13th

4 David Hockney 1972

Portrait of an Artist (Pool with Two Figures)

90.312.500

Christie’s New York

November 15th

5 Kazimir Malevich 1916

Suprematist Composition

85.812.500

Christie’s New York

May 15th

6 Claude Monet 1914-17

Nymphéas en fleur

84.687.500

Christie’s New York

May 8th

7 Henri Matisse 1923

Odalisque couchée aux magnolias

80.750.000

Christie’s New York

May 8th

8 Constantin Brancusi La jeune fille 1932 sophistiquée

71.000.000

Christie’s New York

May 15th

9 Pablo Picasso 1937

Femme Au Béret Et À La Robe Quadrillée (Marie-Thérèse Walter)

69.204.720

Sotheby’s Londra

February 28th

10 Willem de Kooning Woman as Landscape 1954-55

68.937.500

Christie’s New York

November 13th

Source: author’s processing, based on auction houses data.

important and wealthy collectors from all over the world, fascinated by the artwork selection and the consistently high quality shown in the catalogs. Asia followed closely setting the new record in the jewellery sector with the purchase of the Pink Star, a super-pure pink diamond, sold for more than 71 million dollars, earning the highest step of the podium for the Minor Arts sector in 2017. Asian collectors have also displayed a strong interest for ancient local collectibles, as well as wine auctions, for which Hong Kong had already taken the leadership in 2017. In addition, the painting market in Asia has shown significant growth in terms of both volume and liveliness. Standing out among the more significant treasures in international auctions in recent years (see table), is undoubtedly Leonardo’s Salvador Mundi, a painting that has rewritten the history of international collecting with an auction clearing price of 450 million dollars. Recently we had the unforgettable cases of Bansky’s “self-shredding” work and the first painting created by Artificial Intelligence that attracted the interest of curious and enthusiasts.

SEPTEMBER 2019 |

FASHION

fashion 76

FASHION

Moving from heel-toe shifting to with the same

designer’s pencil

Walter Da Silva is one of the most famous automotive designers, winner of the lifetime achievement award for industrial design at the Golden Compass awards. And now he’s back to an old love - women’s shoes with a startup that is reinventing footwear by Laura Lamarra

76 | SEPTEMBER 2019

irst created in the 2nd century AD in Persia, to give more stability to the horsemen on stirrups during battles. Over the centuries, the heel has become an element with purely aesthetic aims, especially in the female world. This fascinating accessory works its magic by creating the optical effect of stretching the leg, but also by highlighting the ankle or enhancing the elegance of the foot. Despite the fact that a higher heel height, creates less shoe stability and thus safety of walking, the primordial need for balance and stability over time is increasingly looking for a compromise with the dynamic and vertical dimension of movement. Walter De Silva has put action, as an expression of the vital and creative impulse of his own being, at the center of his new and engaging professional adventure. “Walter de Silva Shoes, the start-up that my wife, Emmanuelle, and I created,” says de Silva, “is based in Munich, Germany, and was launched in September of last year. Almost immediately, we started receiving orders and we already have our first consolidated contract with Barneys, in

New York. We are planning to develop sales outlets mainly in Europe including Spain and Ukraine. I am looking at the global market, with a step by step approach, without presumption, because it takes time. The target is an independent, modern and classy woman. For the moment there is no inspirational muse, but in my notes you’ll find the classic icon of Italian sex appeal, Monica Bellucci, and Federica Pellegrini, statuary and bold, doing with her life what she really wants, like I do. Non-stereotypical beauties, but women with strong personalities.” Modern and contemporary collections displayed in other historical time frames. Including the Cenacle room, an ancient refectory of the Museum of Science and Technology, an Olivetan monastery built in the early 1500s in the heart of the city of Milan, chosen for its debut last year, or the exclusive Verdi suite of the Grand Hotel et de Milan, a beautiful vintage setting with a refined retro atmosphere.

I’m looking at the global market, with a step by step approach, without presumption. Because first of all, it takes time “I love mingling between past and present, I love contrasts that can have a harmonious and essential dialogue; origins should never be forgotten.” Winner of the lifetime achievement award at the Golden Compass, De Silva, who spent his career with passion and profuse commitment, in the automotive sector for a good 43 years, is now moving from car design to shoe design. “I’ve always been subconsciously fascinated by speed and by beauty in movement. With the eyes of a child, I saw magnificent cars whizzing at top speed and in my drawings I tried to reproduce them. At the time an encounter with a supercar was quite unusual, and being in front of one of them was like living in a dream. In 1972, I wanted to realize that dream by entering the FIAT style center in Turin as a fashion designer. Since then, a chain of fortuitous encounters unfolded. At the age of 27, I met the great architect Ren-

zo Piano, who taught me that a project is never finished and should be observed like a kaleidoscope, where the slightest movement opens up new possibilities. At the age of 35, I joined Alfa Romeo, as head of design for the Milanese brand, number one in numerous racing tracks. After 12 years I left due to differences in opinion. In 1999 I started working with two of the greatest car engineers in the Volkswagen Group, Piech and Winterkorn, also known as ‘the Prince’, to whom I reported for 14 years. In your life, finding a ‘Prince’ who believes in you, is absolutely crucial.” The shoe designed by Walter De Silva is a return to the origins, even when it’s made to be worn in the evening with high heels. It’s an absolute stylistic novelty, harmonious and sensual, inspired by the ankle’s muscular tension and designed to merge foot and shoe into a single sculptural ensemble. The concept of “form in motion” which characterizes its brand, stems from a passion that has always been subconsciously nourished, but in this case is applied to the footwear industry, where Italy is the undisputed leader among high-end and luxury manufacturing countries. Italy is the first producer in the European Union and the eleventh in the world, in terms of number of pairs of shoes manufactured, but also the ninth exporting country, third in terms of toSEPTEMBER 2019 |

FASHION

The business founded together with his wife, Emmanuelle, is obviously targeting women - independent, modern and classy

tal value and second in value, behind China, considering only the footwear with leather uppers [data 2016, WorldFootwearYearbook]. The Italian footwear industry is one of the pillars of the Fashion System. It includes over 4,800 companies and employs 77,000 employees (2016 data), with a trade balance that has always been positive with 14.2 billion euros total annual turnover. The sector is extremely important for the Italian economy, both in terms of quantity and quality. Its success is heavily linked to entrepreneurial dynamism and to its typical structure, which is organized in a “supply chain” made by raw material sub-suppliers, as well as tanneries, components, accessories, machine manufacturers, modelers and stylists. For the footwear industry, 2017 ended in the same way it started, suggesting a certain stability and positive trends, or at least not particularly adverse in different areas. Supported by foreign demand, Made in Italy production shows signs of resilience (up 1 percent in volume), reversing the trend after three years of downturn. Fortuitous encounters and beauty have been life companions for Walter De Silva, determining his path. “Life is made of encounters, whose value is precious and I was very fortunate, starting from my innate gift for drawing, which I was able to nurture in my talented family. Since I was a child, it was my way to express myself. Beauty has always been a sweet companion and also the aim of a never-ending quest. My grandfather Ferruccio owned a shoe factory that he reluctantly had to close in 1951, after the post-war events. Since then I appreciated the beauty of shoes but in fact, my other passion was the automobile,” continues Walter. The object of his design remains feminine and the beautiful car gives way to the shoe, but always aspiring towards a winning design. “In other objects in movement, the set of technical rules prevails over the poetry and aesthetic, while in the case of automobile and evening shoes, instead, there is a perfect balance. They are objects that incorporate agility, speed, strength and character, creating a movement that generates sensations that cannot be evoked by other items.” The form in motion is the common thread that links his two professional experiences to “Nero” and “Orange”, the nuances chosen and presented in the two exhibitions in Milan and Paris. The new “Orange” collection is a genuine expression of the brand’s stylistic traits and the very personal style of the designer in iconic shoes. 78 | SEPTEMBER 2019

Lidia Cardinale couture conquers

the Emirates markets Arab women, in particular, choose Lidia Cardinale Couture to feel unique and elegant, especially for the most important moments

In the photos: Designer Lidia Cardinale and model Ludmilla Voronkina

woman capable of imagining and creating her own personal style with absolute uniqueness - this is the woman who wears Lidia Cardinale. Lidia Cardinale Couture is a leading Italian company that was created more than 20 years ago in a craft atelier where heart and manual skill are linked by the same inseparable thread. Thanks to dedication to work and passion for beauty and craftmanship, a small workshop turned into an important and successful company, well-established in attending numerous editions of Milan Fashion Week as well as being present in foreign markets, in addition to Italy. The fashion shows organized by the Abu Dhabi Business Women Council and the Italian Embassy in Abu Dhabi pinpoint the success that the brand also achieved in the Gulf market. Arab women, in particular, choose Lidia Cardinale Couture to feel unique and elegant, especially for special

and important moments. The elegance and quality of Italian fashion are the distinctive elements of the brand. Every single garment is characterized not only by an outstanding touch of style, but also by a high degree of innovation and creativity to prove that the â&#x20AC;&#x153;Made in Italyâ&#x20AC;? well-established know-how can inspire a modern taste that fits every occasion and need. The key-element of the Lidia Cardinale Couture collections is the ability of transforming garment design and selection into a unique experience. It is, in fact, a completely innovative business model that empowers the woman, through direct contact, to choose the garment best suited to her body and style. Being a high-end fashion brand at its core, Lidia Cardinale couture guarantees to its many Arab customers authentic products, made with outstanding quality and unique style, enriched by fine fabrics and tailor-made details. What is crucial, at this point, is for a woman to express her desires and rely on Lidia Cardinale Coutureâ&#x20AC;&#x2122;s know-how to find her own uniqueness.

SEPTEMBER 2019 |

FASHION

From the mine to the chisel, how a Rolex

is created

From gold to steel, all the parts of a Rolex watch are cast in-house, using cutting edge equipment by Marina Marinetti

n the fabulous 60s, Walt Disney, at the height of his success, commissioned a Rolex for an off-market line, manufactured specifically for him; just a few pieces (no one knows how many and Rolex has keep it confidential) meant to be given to special friends and celebrities. The model? An Oyster Date with reference 6694, with a date window at three o’clock, a Cyclops lens, and a 36 mm steel case. By the way: did you know that the Oyster, created in 1926, was the first waterproof watch? The one commissioned by Walt Disney had Mickey Mouse printed on the dial. But if at an auction or in a shop, you come across a “Mickey Mouse Rolex” with arms that mark the time, you can be assured it is a fake. And anyway, pay attention: if you look closely at photos of Walt Disney, you will never see him without a Rolex on 80 | SEPTEMBER 2019

his wrist. What was so special about the Walt Disney Datejust, besides being in 1945, the first waterproof automatic chronometer watch in the world to indicate the date in a window on the dial? Well, for starters, the gold. In-house precious alloys Did you know that Rolex has its own in-house foundry, in which it produces the highest quality with unique properties? In fact, in its pure 24-carat form, gold is too malleable. To improve its stiffness and resistance, it must be bound to other metals. Thus was born the Rolex 18-carat gold, a noble alloy suitable for watchmaking and composed for 750 parts per thousand of pure gold. Depending on the ratio of silver, copper and other added elements, different varieties of 18-carat gold can be obtained: yellow, rose

The oystersteel is a superalloy suitable for the aerospace industry. Rolex created it and it was the first brand to use it

or white gold. Following the secret formulas, only the purest metals, meticulously controlled by an internal laboratory equipped with cutting-edge instruments, are fused by melting in a crucible at over 1,000 degrees Celsius, producing yellow, white or Everose 18 gold (the exclusive 18-carat pink gold alloy patented by Rolex in 2005). Everose 18 owes its unique color - a characteristic pink nuance - to its composition. Each liquid alloy is poured into a graphite sieve and creates drops that are transformed instantly, due to the cooling in a container of water, in small golden spheres called “grains”, which after a second fusion, are transformed into gold bars reshaped during the finishing phase called “apprêtage”. The gold is deformed, compressed, drawn by rolling or drawing, subjected to new cooking phases, until slabs, tubes, extrusions or wires are produced for making case bands, back covers, bezels and bracelet elements. This is an essential phase, which gives the metal the optimal mechanical, dimensional and aesthetic properties for the subsequent production stages. And if gold isn’t enough for you, there’s always the exceptionally corrosion-resistant Platinum mined from South Africa and Russia. Paradoxically, it is also pliable, elastic and highly malleable, which is why processing and polishing are very delicate operations; the Rolex technicians involved in the finishing of the wristbands and cases are well aware of how much experience it takes to polish of platinum. Rolex uses 950 platinum, a 950 parts per thousand alloy of platinum, generally added with ruthenium, especially for the Day-Date, the most prestigious watch in the Oyster collection. The Oystersteel Working perfectly while preserving all its beauty even in the most hostile environments. This is why Rolex also produces Oystersteel “in-house”. It belongs to the 904L steel family of super alloys that are often used in the high-tech sectors, aerospace, and chemical industries. In 1985, Rolex was the first wristwatch manufacturer to use it. The manufacturing process requires the utmost accuracy. After the first casting, the alloy is melted again under vacuum to make it pure and eliminate any inclusion that could compromise its corrosion resistance. Rolex monitors the quality of each casting through a scanning electron microscope that also identifies the slightest structure or surface defect. Whether it’s the cutting of the slabs, their molding or component processing, the Oystersteel steel’s physical characteristics and great resistance have made it necessary to develop specific equipment and tools as well as particular processing methods. Heat treatments have made it easier

to shape the materials and extremely hard tools, made with tungsten carbide and coated with an anti-wear layer, have been developed for the molding phase. Precision gemologists Within the company there is also a proper gemology and mounting department. The stones are subjected to strict control protocols using numerous analysis tools, some of which are designed specifically for the manufacturer needs. Diamonds, for example, are always X-ray tested to confirm their authenticity and purity, and for the presence or absence of inclusions. Rolex chooses not only IF-classified diamonds (Internally Flawless), which is the highest grade in the most important purity scales used in gemology, but also the most colorless, included in the highest grades, from D to G, on the scale of the Gemological Institute of America. Once the best stones are selected, they are cut. It is a crucial operation with the symmetry and geometry of the facets determining the way the light penetrates into the gems and is reflected on the lower facet of the stone. The cut is then checked by the gemologists and the stones are ready for the setters. Their gestures rival a watchmaker’s precision. Patiently, whether it’s pavé, chained bezel (close set), runner or baguette, the setters fix the gems one by one until they achieve the ideal harmony of colors and reflections and the optimal positioning. The maximum deviation permissible is 2 hundredths of a millimeter, or about a quarter of the thickness of a hair. At this point, with a precise gesture, the metal fragments held around the stones to immobilize them, are pushed back. A setter’s talent lies in their ability to choose the best tool, to find the correct angle and to exert the right pressure by applying the right amount of force. For a watch face with pavé diamonds, these gestures are repeated up to three thousand times.

From the fusion of metals to the meticulous alloy control thanks to tools sophisticated, up to the meticulous setting of precious stones: every

Rolex watch

is the result of a process carried out completely in the internal laboratories

SEPTEMBER 2019 |

FASHION

At school of luxury with the LVMH

vocational training program

A school-work training program for developing highly specialized artisans - this is the Institut des Métiers d’Excellence (IME) mission by Alessandro Bacchi

here are trades that are not learned at school and there’s a shortage of professionals on the market. So companies, big brands included, are likely to become weakened, from all points of view. The solution? Do it yourself by opening and developing an “in-house” vocational school. Because of its natural need of highly specialized workforce and highly creative artisans, that’s precisely what the LVMH group did. In July 2014, LVMH launched the IME, a school-work training program designed to transfer “know-how” within the luxury industry, and to do so by hiring and training young people in the group key sectors: jewelry, wine, fashion, leather goods, watches and culinary arts. The IME combines education in a legally recognized school (initially the Jewelry and Goldsmith School, BJO Formation, the École de la Chambre Syndicale de la Couture Parisienne, Ferrandi Paris and The Compagnons du Devoir et du Tour de France), with a professional experience in workshops and boutiques of the LVMH group fashion houses, in various sectors such as couture, sales or viticulture. Two years later, IME also 82 | SEPTEMBER 2019

opened in Switzerland. Then, in 2017, the program arrived in Italy, in Valenza, Piedmont, with a technical course specialized in bench goldsmithing, a training course designed in partnership with For.Al (a consortium for professional training in the Alessandria area), and in Florence, Tuscany, with the “Leather Pro” course that aims to train personnel to create leather good prototypes, in collaboration with Polimoda, the first fashion school in Italy. Twelve participants per course, for a total of 24 professionals newly available to LVMH fashion houses, all entirely financed by the regions of Tuscany and Piedmont. Forget apprenticeship. “The Institut des Métiers d’Excellence emphasizes the key role of professional masters and tutors in passing on their know-how and their experience”, explains Chantal Gaemperle, Human Resources and Synergies Director for LVMH. “Our crafts are part of long-term professional paths. At LVMH we are all committed to the preservation and enhancement of this patrimony, and we are proud to be part of it thanks to this original idea.” In 2018 the IME met the 500 trainee quota (300 students from the previous years and 200 new apprentices) in partnership with schools specialized in their disciplines in France, Switzerland and Italy. A small army of highly qualified artisans who, as you would expect, did not struggle to find a job, and in fact 80 per cent of them found employment within the sector. Of these, 60 per cent today work in the LVMH group’s fashion houses, from Bulgari to Louis Vuitton, from Christian Dior to Givenchy, not to mention high-end watchmaking brands like Hublot, Zenith, TagHeur. The IME expansion in Europe is strengthened due to numerous new training courses and an increasingly growing network of partnerships”, continues Chantal Gaemperle. Fifteen schools in France, Switzerland and Italy are working on this project (among them universities like the Sorbonne Nouvelle and the Ca ’Foscari), in partnership with 32 brands in LVMH key business sectors. In 2019, its fifth year, the program is enriched with a pastry, cooking and catering course in collaboration with the European Center for the Culinary Professions in Paris and three brand new courses in Italy: Women’s Footwear at the Footwear Polytechnic in Capriccio di Vigonza (Veneto), Men’s Footwear in collaboration with the Académie du Savoir-Faire Berluti in Ferrara and a Master in Luxury, Customer Advisor Retail Sales program at the Ca ‘Foscari University of Venice, which is run strictly in English.

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