Fashion sector brochure by internazionalizzazione

A glimps e at manufacturing in Apulia

FASHION

FOR FURTHER INFORMATION REGARDING THE INTERNATIONAL BUSINESS PROMOTION INITIATIVES OF THE APULIA REGIONAL GOVERNMENT Puglia Sviluppo S.p.A. SPRINT Apulia REGIONAL DESK FOR INTERNATIONAL BUSINESS PROMOTION

A glimpse at manufacturing in Apulia

Via delle Dalie, angolo Via delle Petunie Zona Industriale – 70026 Modugno (BA) Italy Ph. +39 080 5498811 sprint@regione.puglia.it

FOR INFORMATION ON THE ACTIVITIES OF THE PRODUCTIVE BUSINESS CLUSTER OF APULIA’S FASHION SECTOR Via Putignani, 12/A 70121 Bari Italy Ph. 080 / 52 89 753 Fax 080 / 52 20 665 mariototaro@mafrat.com confartigianato.puglia@virgilio.it

The fashion sector 8

made in Puglia is flying high

Apulian businesses trending fashion

Productive specializations by province

the productive business cluster

Fabrics of the future

Apulia – fashionista

Apulian brides

Shoes – an Apulian excellence

Investing in Apulia

Apulia’s strengths

The infrastructure in place

Entrepreneurial network and exports

Universities and research centres

Incentives for development

A glimpse at manufacturing in Apulia The fashion sector This short publication has been produced to enable the Apulia Region to present its fashion sector – one that is both historic and vital - to those working in the same field elsewhere in Italy and abroad. With a workforce more than 43 thousand-strong and almost 5000 businesses, Apulia’s fashion network leads the nation in some sectors, bridal and formal wear and the manufacture of work and safety footwear. For years, the regional government has been a firm believer in the brands, quality and ability to innovate of its fashion sector and of the way its business clusters have brought businesses together. The figures produced by the sector prove its success, and with Apulian businesses no longer working purely as subcontractors, their ideas and brands continue to make inroads on both national and international markets. The government has also succeeded in attracting many foreign businesses to Apulia in order to increase awareness of the region’s fashion excellences, demonstrate its capacity to produce quality goods and to encourage direct dealings between the sector’s operators, buyers and the press. 4

Over the years, Apulia’s fashion network has proved its ability to recognise market trends and to reposition itself in order to tackle new challenges. Today the quality of the items produced is more than competitive, strengthened by the combined skills of master artisans that have been passed down for centuries and the specialist abilities of a qualified workforce and the most innovative and sustainable of productive processes. It means Apulia is a proud contributor to the excellence of the clothing and footwear sectors of the made in Italy brand. These days, Apulia approaches foreign markets and those involved in the sector as a trustworthy partner thanks to the extensive sectorial research network, the incentives offered by the regional government and the avant-garde achievements of its productive system.

“

“MADE IN

One litmus test that underlines how far the sector has progressed is that the number of Apulian brands and young designers acquiring international recognition continues to rise, and the made in Puglia brand is flying ever higher. The success of Apulia’s fashion sector is also down to the regional government’s commitment to activating a range of dedicated tools,Tex-Tech being a case in point. A transregional project dedicated to innovating of the textile sector by creating a sectorial ItaloChinese research and development centre, it also fosters commercial exchanges with China.

PUGLIA IS FLYING HIGH

Apulia is a land of great beauty and not just in its towns, coastline and countryside; its beauty can also be found in some of its productive sectors. In its fashion sector for example, aesthetics and craftsmanship come together to create something unique: Apulian style. The fashion network is one of Apulia’s traditional sectors, although today it is in the throes of a huge transformation. Creative talents and businessmen are working together, using innovation and research as a driving force for growth. New materials, stateof-the-art technology, the diversification of products and the widespread distribution of experienced workers throughout the region are just some of the strengths that mean Apulia’s fashion sector is now seen as a point of reference for countries throughout the Mediterranean, northern Europe and on Eastern markets too. As it continues to grow, the sector is now repositioning itself to target increasingly high-end markets. 8

Traditional skills, creativity and innovation lie behind the success of Apuliaâ&#x20AC;&#x2122;s fashion network.

The sector is also characterized by its four productive hubs. In Bari, the hub is concerned with the production of casual, sports and knitwear as well as underwear and nightwear. The hub in the province of BAT (Barletta-Andria-Trani) specializes in the manufacture of fashion, work and safety footwear, and the one in Lecce manufactures casual clothing, foot wear and items in leather. The fourth polo is based in the Taranto area where businesses specialize in the production of outerwear, shirts and children’s’ clothing and there is also a high concentration of those involved in bridal wear.

APULIAN

BUSINESSES IN THE WORLD

FASHION

Apulia’s fashion sector comprises both small and medium sized businesses, often artisanal, that work alongside much larger concerns that are successfully placing their brands on the world’s markets. Many of these businesses – scattered throughout the region but with a higher concentration in the province of Bari - are involved in making clothes, knitwear and providing services, whilst others produce fabrics and manufacture shoes.

The fashion sector in numbers Active businesses: Workforce: Exports:

4,897 *

43,995 *

610.9 million Euros **

* source: CCIAA (Chamber of Commerce, Industry and Crafts) Bari, 2013 ** Source: ICE (Italian Inst. For Foreign Trade), 2013 12

Apulian fashion is born in the region’s many ateliers and dressmakers’ studios – Putignano (province of Bari).

Traditional loom embroidery is still used to embellish made in Puglia fashion.

An expert, qualified workforce is also part of the success of Apuliaâ&#x20AC;&#x2122;s fashion sector.

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The cluster also works hard to improve the way businesses in the sector respond to changes in economic scenarios and to strengthen their presence on international markets. Another important aspect of its strategic plan is training, an on-going process that involves all those working in the sector from technician to business owner.

THE

PRODUCTIVE BUSINESS CLUSTER The regional government believes that in economic terms, union is strength, which is why it has encouraged the establishment of productive business clusters aimed at stimulating growth in the region’s economic and industrial sectors. Every cluster takes care of the needs of the businesses it encompasses becoming a tool for growth and development, promoting research and the sharing of know-how as well as the rationalisation of the entire production chain. Apulia’s productive fashion business cluster was specifically established to change the sector into an internationally recognised excellence by improving the region’s creative talent and quality of goods thereby increasing the capacity to produce innovative fashion and vitalize local brands.

The Productive Business Cluster of Apulia’s fashion sector by numbers

243 businesses 4 universities and research centres 3 trade unions 20 sectorial bodies and associations

* Source: The Productive Business Cluster of Apulia’s fashion sector, 2014 22

One stage in the making of a made in Puglia garment â&#x20AC;&#x201C; Nardo (province of Lecce).

Clothing made in Apulia has caused a stir on markets throughout the world.

In Apulia, the manufacture of childrenâ&#x20AC;&#x2122;s clothing is flourishing.

In Apulia, for example, a whole new generation of yarns is being produced for use in the worlds of construction, agriculture, industry and leisure. A factory in Putignano (Bari) that produced hemp fabric in the early 20th century, now leads the way in the production of new plastic fibres.

OF THE

FABRICS FUTURE Innovation and research are more a part of Apuliaâ&#x20AC;&#x2122;s textile industry than any other. In recent years, by concentrating on improving quality and market targets, this sector has been able to renew itself and outdo the arrival of foreign competitors in an increasingly global market. Regional government policies have also contributed to its success and today the textile industry in Apulia is a dynamic reality focussed on experimentation. Research centres, universities and businesses work together to test new materials and new productive processes that are evermore sustainable and answer the demands of both national and foreign markets.

Another example of innovation in Apuliaâ&#x20AC;&#x2122;s textile industry is how new production processes involve the use of natural, non-polluting products instead of anything synthetic. A project underway in factories in Melpignano (Lecce) co-financed by the regional government, manufactures luxury yarns using far less energy and producing fewer pollutants than before.

Research and new technologies represent the future of Apulian fabrics â&#x20AC;&#x201C; Melpignano (province of Lecce).

A young designer from Grottaglia and the success of his printed T-shirts in the US are one such story, a group of entrepreneurs from Altamura (Bari) whose casual wear can be found in showrooms in Los Angeles is another. Then there is the tailor from Ginosa (Taranto) who is making such high quality shirts that even members of the British Royal Family wear them. There are many more such stories involving a sector that is successfully repositioning itself to target middle / high market sectors and its ever-increasing propensity to internationalize its commercial relationships is clear.

APULIA,

FASHIONISTA

The creation and manufacture of clothing in Apulia lies at the heart of the fashion industry, a sector that produces garments of all kinds, from outerwear to underwear, knitwear and formal wear…and not forgetting socks! Whilst many businesses are sub-contracted by those who lead the world of made in Italy fashion, an increasing number of young businesses are proving their worth by successfully placing new and original brands and collections on the market. The creativity of young Apulian designers and the know-how passed down through generations of artisans are the winning combination behind the triumph of made in Puglia fashion throughout the world. 34

Apulian fashion also embraces traditional workmanship passed down through the centuries â&#x20AC;&#x201C; Alberobello (province of Bari).

From outerwear to the manufacture of technical socks, made in Puglia clothing has become a winning brand â&#x20AC;&#x201C; NardĂ˛ (province of Lecce).

Once a cottage industry, this cultural and artisanal heritage has survived thanks to the efforts of small and medium sized businesses, support from the regional government and the ability to keep up with market trends. Even the most traditional of items can benefit from innovation! Today Apulia can claim to produce 40% of all Italyâ&#x20AC;&#x2122;s bridal wear, making it the national leader in this sector. A feminine realm that is taking a very special element of the made in Puglia brand throughout the world.

APULIAN BRIDES In Apulia, the long tradition of creating bridal wear is now a source of pride to the entire fashion sector. Top of the range bridal wear has been created in Putignano (Bari) since the 50s and still is. Highly skilled seamstresses, exquisite fabrics and savvy business acumen have turned traditional lace and bobbin work into a vibrant business that creates more than 30,000 dresses every year.

Apuliaâ&#x20AC;&#x2122;s workshops turn lace, bobbin work and exquisite fabrics into dream bridal gowns â&#x20AC;&#x201C; Putignano (province of Bari).

Apulia is Italyâ&#x20AC;&#x2122;s leading producer of bridal and formal wear.

SHOES, The manufacture of shoes is another of Apuliaâ&#x20AC;&#x2122;s historic fashion sectors that is present throughout the region, although particularly concentrated in the industrial areas around Barletta, Trani and Molfetta and to a lesser extent, also in the province of Lecce. The history of this sector is emblematic of the strength and dynamism of Apulian businesses that have been making shoes since the early 1900s, and it took only a few decades for the sector to become a cornerstone of Apuliaâ&#x20AC;&#x2122;s fashion industry. When ever-increasing competition in what had become a global market led to a crisis in this sector, businesses responded positively, opted to diversify and specialize in good quality work and safety footwear. A perfect example of how to turn a crisis into an opportunity to diversify and grow and today, in fact, Apulia is the national leader in the manufacture of this type of footwear. 46

Business acumen and traditional workmanship have become distinguishing characteristics of the sector and the basis on which top quality, truly authentic items are produced today. Businesses continue to invest in research and design, often adopt branding policies and choose to diversify. These are the characteristics that mark a footwear sector that continues to innovate and respond to the dynamics of foreign markets. Proof of this can also be found in the number of major Italian brands who have chosen to base their new production lines in Apulia.

APULIAN EXCELLENCE AN

The productive hub in the province of BAT is one of Italyâ&#x20AC;&#x2122;s leading manufacturers of work and safety footwear.

Apulia is one of Southern Italy’s most dynamic regions. The development model to promote new synergies between businesses and research to improve infrastructure and the availability of a qualified workforce has proved to be a winning strategy for all manufacturing sectors.

The regional government ensures high standards in the management of international relations, as well as support for new foreign operations arriving in the territory.

INVESTING IN APULIA The great strength of the “Apulian model” is the guarantee of clear guidelines for economic operators, including the creation of incentive packages for all types of Apulian businesses that are dynamic, proactive leaders in their respective sectors, operating at an international level, open to experimentation, but also custodians of a heritage of rich artisanal traditions.

Apulia’s strategic geographic position, its commitment to environmental sustainability, an avant-garde social welfare system, and the wealth of its social capital are also factors that make Apulia a region of beauty and also of interest, both for investment and as a place to live.

A regional government attentive to the needs of companies that invest in local economic development. A positive business climate with a dynamic entrepreneurial system.

APULIA’S An excellent network of research centers and universities.

A high quality of life the “Apulian lifestyle”. 52

A strategic geographic position with optimal infrastructure systems.

A highly qualified labor force operating in an effective labor market.

STRENGTHS An ATTRACTIVE system of incentives, aimed both at new and foreign investment and at promoting the entrepreneurial development of the existing regional productive system.

Thanks in part to the support of the regional government, Apulian businesses have proved they can adapt and keep up with market trends.

THE

INFRASTRUCTURE

INPLACE 12.000 km OF ROADS

entrepreneurial NETWORK AND

Exports

332,000 ACTIVE BUSINESSES *

1.528 km OF RAILWAY LINES

1 COMPANY FOR EVERY 12 CITIZENS **

2 International and 2 domestic airports

1.156 THOUSAND PEOPLE IN WORK ***

9 portS - COMMERCIAL AND PASSENGER 1 Interport 98% of THE POPULATION HAS access

7.9 BILLION EURO IN EXPORTS *** 3.4

billion euro in exports for the first half of 2014 **** ( over the same period in 2013)

+9.5%

to BROADband (Italian average: 96,5%) *

* SOURCE: Data from Invitalia, December 2013 56

* SOURCE: BARI CHAMBER OF COMMERCE (CCIAA), 2013 ** SOURCES: BARI CHAMBER OF COMMERCE AND ISTAT, 2013 *** SOURCE: ISTAT, 2013 **** SOURCE: ISTAT, 2014 57

UNIVERSITIES ANDRESEARCH

CENTERS

4 Universities (3 public, 1 private) 1 Polytechnic institute 30 networks of public research laboratories 6

Technological clusters, recognized by the National Ministry for Research and Education

5 Public-private aggregations

The production of yarns using natural materials is just one example of how innovation and sustainability make perfect partners.

Overall the Apulia Region Government has activated investments of over 3 billion euro in its own territories, which is triple the base funds accessed from the public sector, at 865 million euro. For the next program of ERDF funds the regional government will provide allocations to the productive system of more than 2.4 billion euro, representing 44.36% of the entire regional ERDF Programme budget.

INCENTIVES The strategic push towards synergies in the spheres of enterprise and production has created experimentation, innovation and transfers of knowledge and know-how. At the same time, the Regional Government has made available notable resources for the promotion and support of Apuliaâ&#x20AC;&#x2122;s different economic sectors. The resources originate in large part from the European Regional Development Fund (ERDF), and are directed towards firms of different sizes, present in the various productive sectors active in Apulia.

FOR

DEVELOPMENT

Regional programme contracts for large enterprises 292 million euro were awarded to manufacturing firms for the development of activities and projects that have reinforced the competitiveness, the draw of investment and the development of employment in the region.

Regional programme contractS for the tourism sector With allocations of 50 million euro, this program has favored further growth in sustained off-peak tourism.

AID for medium-sized companies and consortia of small-to-medium sized businesses (Integrated Incentives Packages) 201 million euro were allocated for activities in manufacturing, service industries, agro-food processing and commercialization, to create employment, social stability and economic dynamism.

AID for medium and consortia of small-TO-medium enterprises active in tourism SECTOR (Integrated Incentives Packages for the Tourism Sector) Applying a budget of 54 million euro, this intervention has further raised the standards of quality and classification in the Apulian tourism offer.

Aid packages for micro & small business (Title II) Total allocations of 107 million euro have strengthened the economic activities of small and very small businesses, particularly through improved access to credit.

Aid packages for small Businesses for touristic sector (Title II â&#x20AC;&#x201C; Tourism) This instrument provided 25 million euro in aid to small and medium enterprises active in the tourism and lodging sectors, in management of tourist port and beach services, and to small and medium businesses that undertook new tourism and hotel initiatives, including the restorationrenovation of architecturally significant and historical properties.

Aid packages for innovative small businessES in early development This program, applying a total of 15 million euro, has stimulated the birth of micro and small enterprises based on productive applications of recent research results in the industrial sectors strategic to Apuliaâ&#x20AC;&#x2122;s regional development (new materials, advanced logistics, advanced ICT manufacturing, energy conservation and environmental enhancement,

Aid packages for setting up or moving to SUBurban areas The Regional Government provided 10 million euro in support to business consortia and networks engaged in transferring their existing production systems away from cities with a population of over 40,000, towards extra-urban industrial areas and production parks.

public health, agro-food systems).

Call for proposals: Internationalization Aid packages for OPERATIVE innovative small businessES With a budget of 15 million euro, this initiative has supported the consolidation and growth of innovative micro and small enterprise active in the strategic industrial sectors identified by the Apulia Region Government (new materials, advanced logistics, advanced ICT manufacturing, energy conservation and environmental enhancement, public health, agro-food systems). The program supported investment projects proposed by businesses already in operation.

Integrated incentive packages for small businessES Over 49 million euro were allocated to the most dynamic of small Apulian businesses, for consolidation, innovative restructuring and expansion.

The current call represents the first regional incentive program for business internationalization. With a budget of 20 million euro, the objective is to increase the number of exporters operating in Apulia.

New enterprise initiatives (NIDI) This initiative of the Apulia Region Government is directed at women, youth, the unemployed, persons subject to layoff, contract staff and the self-employed, who wish to begin a new business. The program provides 54 million euro in forgivable loans and mortgage financing, with investment insurance of up to 80% or 100%.

Regional technological clusters for innovation With a budget of 30 million euro, this instrument strengthens activities in industrial research, experimental development and innovation in micro, small, medium and large business, in the thematic sectors identified under the SmartPuglia2020 Strategy: Sustainable manufacturing; Environmental and personal health; Inclusive, creative and digital communities.

The regional government has implemented many measures that support small and medium sized businesses in the fashion sector.

A glimpse at manufacturing in Apulia

Via delle Dalie, angolo Via delle Petunie Zona Industriale – 70026 Modugno (BA) Italy Ph. +39 080 5498811 sprint@regione.puglia.it

Project co-financed by the E.U., in accordance with the Operational Programme E.R.D.F. European Regional Development Fund Puglia 2007-2013 – Line 6.3., Action 6.3.2 “Initiatives in support of local business internationalisation”

APULIA REGION ECONOMIC DEVELOPMENT EMPLOYMENT AND INNOVATION POLICY DEPARTMENT International Business Promotion Office Corso Sonnino 177 70121 Bari Italy Ph. +39 080 540 47 47 Fax +39 080 540 47 43 servizio.internazionalizzazione@regione.puglia.it www.internazionalizzazione.regione.puglia.it www.regione.puglia.it www.sistema.puglia.it